Tax Guru – Ker$tetter Letter

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Archive for August 27th, 2004

Deducting Stock Losses As Thefts

Posted by taxguru on August 27, 2004

I’ve written before about groups such as 165 Services, that supposedly allow investors to deduct the full amounts of their stock market losses as being caused by thefts by their stockbrokers, rather than being limited to the insanely unfair $3,000 per year Schedule D capital loss deduction. I’ve never endorsed this idea because, as I’ve described on several occasions, I consider most stock losses to be the result of stupidity, which as far as I know doesn’t make it any more deductible.

Roth & Company has a funny look at an investor who tried a similar attempt to fully deduct his stock losses with the claim that his broker took advantage of him by forcing him to consume alcoholic beverages and then agree to ridiculous investment decisions. His claim was disallowed by the Tax Court.

However, this is one more bit of substantiation of my claim that playing the stock market is no different than gambling in a casino. Casinos routinely provide free alcoholic beverages for the express purpose of encouraging stupid bets by their customers. Why shouldn’t stockbrokers do the same thing?

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Posted by taxguru on August 27, 2004

Coin-laden suspect caught at car wash – Why launder money through banks when you can use car washes?

Big Four Get Mixed Marks From U.S. Accounting Panel – As if the Big CPA firms’ reputations aren’t bad enough; now they admit to breaking the law by charging clients a percentage of tax savings. Such contingency fees are specifically prohibited by IRS rules of practice.

Taxing Times for South Carolina Democrats

Imagine receiving 100% of your paycheck! – Fellow Libertarian Neal Boortz looks at the Fair Tax plan to replace the Federal income tax with a national sales tax.

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The Well’s Running Dry

Posted by taxguru on August 27, 2004

Why those of us financial advisors with realistic foresight have cautioned everyone about relying on Social Security and Medicare for our future care. Taking steps to reduce the amount of money wasted on these government programs and setting things up to be independently provided for have always made sense.

Greenspan Warns on Baby Boomer Benefits

Greenspan-Aged Population to Hit Finances

Social Security, Medicare too generous

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