Romney rented a tax exemption status from the church

esh_gaOctober 29, 2012

How about this:

Republican presidential nominee Mitt Romney used a loophole to "rent" the Mormon church's tax exemption status and defer paying taxes for 15 years, according to a new report.

Tax returns obtained by Bloomberg News through a Freedom of Information Act request indicated that Romney set up a charitable remainder unitrust (CRUT) in June 1996 just before Congress cracked down on the loophole in 1997.

"In this instance, Romney used the tax-exempt status of a charity - the Mormon Church, according to a 2007 filing - to defer taxes for more than 15 years," Bloomberg's Jesse Drucker explained. "At the same time he is benefiting, the trust will probably leave the church with less than what current law requires."

Estates lawyer Jonathan Blattmachr told Bloomberg that Romney's trust benefits from the Mormon church's exempt status because charities don't pay capital gains taxes when they make a profit from the sale of assets.

"The main benefit from a charitable remainder trust is the renting from your favorite charity of its exemption from taxation," Blattmachr said, adding that the charitable contribution "is just a throwaway" and the church would receive little if any financial benefit from the trust.

"I used to structure them so the value dedicated to charity was as close to zero as possible without being zero," he pointed out.

The CRUT allows individuals to "defer capital gains taxes on any profit from the sale of the assets, and receive a small upfront charitable deduction and a stream of yearly cash payments," Drucker wrote. "Like an individual retirement account, the trust allows money to grow tax deferred, while like an annuity it also pays Romney a steady income. After the funder's death, the trust's remaining assets go to a designated charity."

In fact, the amount available to go to the Mormon church has decreased from at least $750,000 in 2001 to $421,203 at the end of 2011 as Romney has collected yearly cash payments from the trust.

The Romney campaign declined to answer questions about the trust but insisted that it was "operated in accordance with the law" in an email to Bloomberg.

Boy, he really does have the best accountants money can buy, doesn't he? What a swell guy.

Here is a link that might be useful: source

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jerzeegirl(9)

Maybe this is the October surprise - Romney cheats Mormon Church out of charitable deduction!

That's a pretty amazing way to make some money, over a period of 15 years no less.

I have a feeling that if people saw Romney's tax returns, they would be pretty upset.

    Bookmark   October 29, 2012 at 6:19PM
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labrea_gw

Why if this were true... if it were true?
It would mean nothing to the living dead that bang around hungry fro brains & tax cuts.

I can even imagine some of our bight lights saying good for him!

    Bookmark   October 29, 2012 at 6:20PM
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notto

This explains why he will NOT show us the rest of his tax returns....and IF he gets elected there will be no capital gains taxes, so he gets to keep LOTS of money.

All I can say is if people will vote for him, they will slide down the monetary pole, and become lower middle class....and deservingly so.

    Bookmark   October 29, 2012 at 6:29PM
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maddie_athome

Now where is the surprise.

    Bookmark   October 29, 2012 at 6:36PM
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labrea_gw

I can hear it now it was legal at the time he took advantage of it. Well wasn't it?
It doesn't matter to this crowd!
It doesn't matter o a crowd who says yes let the auto industry go bankrupt let vulture funders buy up debt for pennies on the dollar let them ship 25,000 of those jobs to china making auto parts. Lets call that SUCCESS!

you got people who carried on about Chinese flags at the Whitehouse 3 years ago applauding as Success the looting of the US.

    Bookmark   October 29, 2012 at 6:45PM
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Circus Peanut

the living dead that bang around hungry fro brains & tax cuts.

Appropos, Joe:

Here is a link that might be useful: Zombie Apocalypse

    Bookmark   October 29, 2012 at 7:57PM
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maddie_athome

Gee it's quiet in here.

    Bookmark   October 30, 2012 at 11:24AM
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david52_gw

Hey, when you're into Uncle Sam with a mega-million tax avoidance scheme, you're an astute businessman. One that knows how to 'create jobs'. The kind that should have their dividends and tax free capital gains along with unlimited billions in estate taxes removed from the tax rolls.

When you're into Uncle Sam for $130 worth of food stamps, OMG!!! OGM!!!OMG!!@! OMG!!#@ SINGLE BLACK MOTHER 13 KIDS 14 DIFFERENT DADDY LEECHES 47%'ER/NO PERSONAL RESPONSIBILITY ARE ROBBING US BLIND OMG OMG OMG !!@#@!

    Bookmark   October 30, 2012 at 11:39AM
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maddie_athome

Apt summary, Dave.

That reminds me. How many millions did Romney cheat the Italian people out of?

    Bookmark   October 30, 2012 at 11:52AM
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jodik_gw

I'm with Joe on this...

Since when is lying, cheating, and stealing considered good business practice? Who dropped America's moral compass and broke it?

    Bookmark   October 30, 2012 at 11:54AM
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Embothrium(USDA 8 Sunset 5 WA)

Since forever. That's why it's gotten this bad, the pressure has been there all along and the money men have managed recently to take over the government. It's a return to the age of the robber barons, not a new thing.

    Bookmark   October 30, 2012 at 1:14PM
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greatgollymolly

As I stated in another post, as a minister of his church he could claim some of his personal expenses, including housing, food, renovations, etc. and not have to pay taxes. If that is what he did he didn't break any laws. He can't win with you people because he's rich and religious and as far as you are concerned he's a loser. So be it, but he hasn't broken any tax laws, only taken advantage of them just like you would if you paid taxes. You cannot rent a tax exemption.

    Bookmark   October 30, 2012 at 10:42PM
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david52_gw

If that is what he did he didn't break any laws.

But, see, thats not what he did. He used a huge loophole in the tax laws to hide income. You might try reading the OP.

    Bookmark   October 30, 2012 at 10:46PM
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esh_ga

For GGM again:

Estates lawyer Jonathan Blattmachr told Bloomberg that Romney's trust benefits from the Mormon church's exempt status because charities don't pay capital gains taxes when they make a profit from the sale of assets.

"The main benefit from a charitable remainder trust is the renting from your favorite charity of its exemption from taxation," Blattmachr said, adding that the charitable contribution "is just a throwaway" and the church would receive little if any financial benefit from the trust.

"I used to structure them so the value dedicated to charity was as close to zero as possible without being zero," he pointed out.

    Bookmark   October 30, 2012 at 11:00PM
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esh_ga

I hope you saw this GGM.

    Bookmark   October 31, 2012 at 8:26AM
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greatgollymolly

He used a "loophold" so is that the same as him stealing money from the government? No!! Anyone who pays taxes will take any loopholes they can find. Do you think he's the only man in the world to do this? Get serious.

If Obama found a tax loophold you wouldn't be screaming about him now would you? No, you'd be saying how utterly brilliant he is for finding the loophold. Give me a break.

    Bookmark   November 1, 2012 at 12:16AM
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david52_gw

Yup: screw the government out of taxes, you're an astute businessman, demonstrating the sort of leadership this country needs, and deserve to run the country.

Just the sort of leadership we need. Of course, 'the government' is ourselves.

    Bookmark   November 1, 2012 at 1:10AM
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littleonefb

Yes GGM, he found loopholes up the ying yang and in the process, guess what? he denied the federal government tax revenue that should have been paid.

What a wonderful example that is for the President of the United States have done.

Really shows a lot of character and leadership ability, doesn't GGM. Oh, I know, Romney is a wonderful business man. Sure is, he screwed the US government out of any and all tax revenue that he possibly could do, both personally and professionally.

Thanks but no thanks, that kind of character and person, that kind of brain function, thought process doesn't belong in the white house.

    Bookmark   November 1, 2012 at 1:21AM
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jillinnj

I can even imagine some of our bight lights saying good for him!

And then comes GGM as one of those "bright lights".

All those bright lights are in the "I don't care" camp. He's not Obama and that's all they need to know.

    Bookmark   November 1, 2012 at 8:58AM
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esh_ga

Anyone who pays taxes will take any loopholes they can find.

Then why didn't he take his full charitable gift deduction in 2011?

Because he knew he would release his taxes and people would see how LITTLE he paid. So apparently he is shamed by it when people are going to see it, but fine with it if they aren't going to see it. Kind of like what he says when he thinks he is not being recorded ....

Yep no wonder he doesn't want people to see his past tax returns.

    Bookmark   November 1, 2012 at 9:14AM
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maddie_athome

So, how much did Romney manage to bilk this time?

    Bookmark   November 1, 2012 at 9:43AM
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david52_gw

But just look at all the jobs he created.

(Remember? He used Panamanian Strongman loot invested in Staples, pulled out a few months later, and voila, 10 years later Staples went on to create 40,000 part time jobs!!!)

    Bookmark   November 1, 2012 at 10:17AM
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sweeby

Gotta wonder what else he's hiding in those tax returns. This loophole doesn't paint a pretty picture, but then, I suspect most people already know what kind of man he is when it comes to his business / financial dealings, so this isn't exactly a surprise.

    Bookmark   November 1, 2012 at 12:02PM
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