Thom Hartmann predicts that Romney's 2009 tax return might very well show ZERO taxes paid.

[gateley]

Something about carrying the losses on capital gains.

[Demonaut]

1. heard that too, I would agree

no way he's releasing more returns, too damning

[FrenchieCat]

2. 2008 as well.....

Giving us 1 year of returns ain't close to answer questions folks are posing about this man's method of paying and smaller tax rate than too many of us!

[hifiguy]

3. If true, and I'd bet it is, that would

finish him off once and for all. There is no way to sell to the public a candidate who is worth $250 million and paid no taxes. None.

[former9thward]

4. Absurd.

It only shows Hartmann knows nothing about taxes. You can only charge $3000 from past losses.

[HangOnKids]

5. Thom Is So Dumb

Why he has a radio show is outrageous! Plus all the stuff he just pulls out of his ass with no research is amazing.

[former9thward]

6. When you don't know that elementary fact about the tax code

you shouldn't spout off on a radio show about how much taxes someone might be paying.

[gateley]

7. Am I reading this wrong? You can deduct $3000 THIS year, and any excess can be

carried to NEXT year. So that's $6000 you can defer. Right?

Capital Loss Limitations

If your total capital losses exceed your total capital gains for the whole year, then you have a net capital loss. Net capital losses are deductible up to a limit of $3,000 per year. Net capital losses in excess of the $3,000 limit are carried forward to next year's taxes.

http://taxes.about.com/od/taxglossary/g/Capital_Loss.htm

[former9thward]

8. That is correct.

You can carry losses up to the $3000 a year limit for three years (forward or backward). The point is that the ability to take $3000 in losses would mean nothing to someone of Romney's income. No matter what he has in stocks, etc which may have gone down in 2008, it would mean nothing to his deferred income from Bain, plus other interest and speaking fees.

[gateley]

9. IS it possible for someone of that wealth to pay no taxes? nt

[former9thward]

10. In theory.

But they would have to have all their monetary assets in stock, bonds and the sum total of what they sold would have to be a loss. Also they would have to have done no work whatsoever (speeches, book sales, etc.) That is not a practical reality because people of that wealth always have income producing assets such as bank accounts, treasury bonds, etc.

[gateley]

15. Nonetheless, they still get a very generous tax break! Thanks for the info! nt

[joeglow3]

13. Yes. Normally it would be through credits.

A lot of joint ventures in Low income Housing are designed to lose money and kick off huge credits. It is possible to make a lot of money through other means and then have investments that kick off tax credits, reducing your liability to zero.

[gateley]

16. They are SO sneaky! Anything to not have to pay what the rest of us do! nt

[joeglow3]

11. There is no limit to the number of years an individual can carry capital losses forward.

[former9thward]

12. You are right.

I was thinking of going backward and you can only amend returns for three years back.

[joeglow3]

14. I would bet him anything that is not the case

However, I cannot say for certain. He made no estimated tax payments in 2010. He applied an overpayment from his 2009 return for $1.4M & had an extension payment of $3.2 M. In order to avoid underpayment penalties, you need to pay in 90% of the CY liability or pay 110% of your PY liability (in equal installments). Given that he paid no interest and would not have met the 90% of CY test, the $1.4M overpayment applied had to represent at least 110% of his PY liability.

Beyond, that, I cannot tell for certain.

That said, I always enjoyed preparing returns like his - very complex.