D-Redondo Beach.Rep. Jane Harman, D-Redondo Beach, has co-sponsored legislation that would grant tax relief to those who exercised but never sold stock options, which then plummeted in the 2000 tanking on Wall Street. Under current law, taxpayers are nicked for the value of the options when exercised, not the long-term capital gains or losses capital gains or losses n. particularly when calculating the tax liability of an individual or business, this is the difference between the original cost plus the cost of capital improvements, excluding maintenance, called "basis" and the sales price. Capital gains can be a terrible financial shock to individuals who bought a house or business many years ago for the going price and now find it is highly valued, greatly due to inflation.. Contributing columnist Benjamin Mark Cole writes about the local investment community for the Los Angeles Business Journal. His new book is "The Pied Pipers of Wall Street: How Analysts Sell You Down the River, "published by Bloom berg Press. |
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