[WSBAPT] Capital gains tax upheld

[msilver at wolfenet.com]

I have not read the opinion, but the law is older than I am.  There are
early cases saying the tax is on the privilege of doing a transaction within
the state, measured by the gross selling price.  I guess the opinion says
the legislature may grant an exemption without disfiguring the tax structure
that otherwise  absolutely disallows deductions except as allowed by
statute.  But there are some deductions allowed, eg, bad debt, so however
you look at the 250,000 it can I suppose logically be harmonized with the
transaction tax, measured by the proceeds after deduction (or exemption), as
allowed by legislation.  Bottom line, B & O is an obscure tax structure, but
no one gets around to replacing it with a straightforward net income tax.
It is worst for out of state businesses who can blunder into the system with
no hope of understanding it.  

 

And I know all of this without even reading a boring self-justifying case.
How's them for apples?  

 

 

MARTIN SILVER, LLM TAXATION, NYU

ATTORNEY AT LAW

 

1420 - Fifth Avenue, Suite 3000

Seattle, Washington 98101

 

Tel:  206-224-3461

Fax:  1-206-224-3459

 

Web:   <mailto:http//silvertaxlaw.com> http//silvertaxlaw.com 

 

 

 

 

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com>
On Behalf Of Joshua McKarcher
Sent: Friday, March 24, 2023 10:25 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Capital gains tax upheld

 

Always has been. It's on the gross revenue, just like the real estate tax is
on gross sales price. (Any "deductions" are not applicable generally to all
parties, like this $250,000 "deduction" on the capital gains tax.) 

 

The capital gains tax is on a number net of a deduction granted ($250,000).
(These are generalities, of course. There are details, I realize.)

 

But anyhow, it's all semantics, and the 7 in the majority are the only ones
whose opinions matter. But that sentence is a whopper, no matter which side
one is on.

 

All my best, Josh

 

From: wsbapt-bounces at lists.wsbarppt.com
<mailto:wsbapt-bounces at lists.wsbarppt.com>
<wsbapt-bounces at lists.wsbarppt.com
<mailto:wsbapt-bounces at lists.wsbarppt.com> > On Behalf Of
Jeff at bellanddavispllc.com <mailto:Jeff at bellanddavispllc.com> 
Sent: Friday, March 24, 2023 10:15 AM
To: 'WSBA Probate & Trust Listserv' <wsbapt at lists.wsbarppt.com
<mailto:wsbapt at lists.wsbarppt.com> >
Subject: Re: [WSBAPT] Capital gains tax upheld

 

So that means the B & O tax we pay on our income is also an excise tax and
not an income tax.

 

W. Jeff Davis

BELL & DAVIS PLLC

Attorneys at Law
P.O. Box 510

720 E. Washington Street, Suite 105
Sequim WA 98382
Phone: (360) 683.1129 
Fax: (360) 683.1258 
email: jeff at bellanddavispllc.com <mailto:jeff at bellanddavispllc.com> 
 <http://www.bellanddavispllc.com/> www.bellanddavispllc.com
 
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From: wsbapt-bounces at lists.wsbarppt.com
<mailto:wsbapt-bounces at lists.wsbarppt.com>
<wsbapt-bounces at lists.wsbarppt.com
<mailto:wsbapt-bounces at lists.wsbarppt.com> > On Behalf Of Joshua McKarcher
Sent: Friday, March 24, 2023 9:55 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com
<mailto:wsbapt at lists.wsbarppt.com> >
Subject: [WSBAPT] Capital gains tax upheld

 

Enjoy this gem. So far, this is my "favorite" sentence:

 

"The capital gains tax is appropriately characterized as an excise because
it is levied on the sale or exchange of capital assets, not on capital
assets or gains themselves."

 

Tax = [y%] x [Gross gain - $250,000]

 

I will not go on. Best, Josh

 

Joshua D. McKarcher

McKarcher Law PLLC

537 6th Street

Clarkston, WA 99403

(509) 758-3345

(509) 758-3314 (fax)

 <mailto:josh at mckarcherlaw.com> josh at mckarcherlaw.com

 <http://www.mckarcherlaw.com/> www.mckarcherlaw.com

 

 

 

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