Monday, October 3, 2016

Hillary's Taxes

Yesterday, I discussed Trump's use of a net operating loss carryforward to reduce current year taxable income.    Today, I see that Hillary Clinton utilizes a loss carryforward of her own - a capital loss carryforward.     Capital losses are only deductible against capital gains.    If a taxpayer has a net capital loss (after netting against capital gains) a deduction of $3,000 is allowed.   Any remaining capital losses are carried forward to offset capital gains in future years.

I have attached an excerpt of Hillary Clinton's 2015 tax return which shows a capital loss carryforward of $699,540.  After deducting the maximum of $3,000 (she had no capital gains in 2015), she will carryforward $696,540 to her 2016 tax year.

So although her carryforward is not nearly as significant as Donald Trump's she is following the tax laws that allow for such loss carryforwards.   

As discussed yesterday, the issue with Donald Trump is not a tax issue but one of his credibility as a businessman.  

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