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View Diary: Romney Invested in Swiss Francs, Hedged against US Dollar. (84 comments)

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  •  Section 988 gains / losses. (8+ / 0-)

    The realization principles are the same as any other investment asset (proceeds - basis = gain), but the gain & loss are always ordinary (although one can make an election to treat some forward contracts as capital, IIRC)

    Note that you can't escape taxation by spending it in the foreign currency; a purchase w/ foreign currency is a realization event that triggers gain.  

    This trips a lot of people up.

    •  It'd be interesting to have a look at his returns (3+ / 0-)
      Recommended by:
      MKSinSA, gustynpip, reflectionsv37

      for the past 10 years or so, to see if he even complied with these laws.
         If he's got nothing to hide, he shouldn't have any problem with a bit of sunshine.

      "We the People of the United States...." -U.S. Constitution

      by elwior on Mon Jan 30, 2012 at 01:47:36 PM PST

      [ Parent ]

      •  I really doubt (0+ / 0-)

        that Mittens himself does any of that investing directly. When you're in that tax bracket (oops, should have said level of income = high), it's all done by tax lawyers, investment advisors, and financial strategists.

        And aren't a lot of his assets in some kind of blind trust? Should be, if not.

        Listen, are you breathing just a little and calling it a life? -- Mary Oliver

        by Mnemosyne on Mon Jan 30, 2012 at 06:59:02 PM PST

        [ Parent ]

    •  Thanks for clearing that up. (1+ / 0-)
      Recommended by:

      Exchange rates are so funny to me. It was a big surprise living in a foreign country when the price of everything didn't follow the fluctuations of the dollar.

      Snarka snarka snarka!

      by Hunter Huxley on Mon Jan 30, 2012 at 02:07:03 PM PST

      [ Parent ]

    •  Interestingly, I don't see any 988 gain (2+ / 0-)
      Recommended by:
      Pluto, Mnemosyne

      or loss on his return.  He has a lot of section 988 activity in the partnership section, but section 988 gain / loss from a brokerage account should show up on line 21, other income, and he doesn't have any there.

      That's sorta weird.  

      •  Are gains from foreign vaulted gold (3+ / 0-)
        Recommended by:
        elwior, Mnemosyne, KenBee

        ...supposed to show up there?

        For future reference, when I use the terminology: "Psychopaths" are born that way. "Sociopaths" are created by their culture. Both lack human empathy and both make great CEOs and powerful leaders of nations.

        by Pluto on Mon Jan 30, 2012 at 02:33:46 PM PST

        [ Parent ]

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