TaxationRobbers

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  • TaxationRobbers
    Participant

    Kaye Thomas,

    Would you kindly respond to my last post that answered yours. Thank you.

    TaxationRobbers
    Participant

    Kaye Thomas,

    Thanks for the detailed description of the process.

    I still remain confused, even after searching for news articles on this.

    However, the latest article I could find was the CNBC link one, which says the Bill is passed. Which to me says, any stock we own Long-Term & haven’t sold yet will be subject to the higher rates that were in that Bill. Whether this will become retroactive is unclear, though the fact it was passed & approved by the Ways & Means Committee would indicate to me it would be retroactive to April, I believe.

    https://www.cnbc.com/2021/11/05/house-passes-bipartisan-infrastructure-bill-sends-it-to-biden.html

    However, I can’t find a definitive answer to whether the initial rate increases were changed, and what makes this more confusing. The following link to Schwab article states that the Capital Gains tax increase was NIXED from the larger 2nd Bill, which has only left me more confused:

    https://www.schwab.com/resource-center/insights/content/congress-drops-most-individual-tax-increases-revised-economic-package

    In any case, since the 1 Trillion Infrastructure Bill is past all obstacles, being passed, will not this Bill (not the bigger 2nd one) have passed the new Capital Gains taxes into law, or would this be trumped IF the 2nd Bill get approved by both the House & Senate?

    I think I’ve outlined my confusion here.

    TaxationRobbers
    Participant

    Kaye Thomas,

    Thanks for your reply. It is your site, so you make the rules. However, I don’t see how you can separate the politics involved here, as it is directly and intimately connected to the topic.

    You can’t discuss major Capital Gains changes without bringing the very source of any such changes without bringing up the government. And, after all, tax law changes are part and parcel of the government, be it the IRS or the administration.

    This applies as well to the final version of the second piece of legislation. I am confused, however, as to when this would be applicable to stock bought or sold prior to the date of committee action. I am unclear as to whether it will be legal for such changes to take effect as of the date of committee action, “even though final enactment of the law occurs some time later.”

    A clarification would be appreciated.

    TaxationRobbers
    Participant

    Kaye, I discovered that if a brokerage decides they are no longer providing wash sales, this is to our advantage, as their 1099B will not have wash sales, and the IRS simply matches up what the 1099B provides. One small consolation in the jungle of getting every penny out of us they can.

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