Answer – when it affects your taxes.
But according to his 2010 tax return, when the Internal Revenue Service comes calling in April, Romney has a different answer: The presumptive GOP nominee reaps lucrative tax breaks for “active” participation in the private equity firm he founded, as well as a host of other investments.
In the case of Romney this distinction is worth millions.
For tax purposes, he claims an active status; for political purposes, he claims to have zero to do with the investments.
The distinction is valuable, for the IRS treats passive and active income and losses differently. If a passive investment loses money, the taxpayer can only write off that loss if passive gains have also been made. But active losses can be written off at a 35 percent rate and deducted from the taxpayer’s ordinary income. In other words, a taxpayer wants active losses, not passive losses. So by describing many of his investments as active, Romney saves himself millions of dollars in taxes.
So lets be clear – either he (or his tax preparers) lied to the IRS for a hefty benefit he didn’t earn, or…
…he lied to the American People.
To their face.
Oh yeah, he doesn’t want you to see what is in his other tax returns either. I wonder what we should conclude. I wonder what it would cost him in fines
Honestly, which is more believable for the “man of all positio…, er ‘seasons'”.