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Show PAGE A8 JUNE 5, 2009 Summit County News Trust us. Weʼre the cool way to go. Save on cooling costs with Carrier Cooling Systems from Heber Valley Mechanical. An exceptionally reliable, ultra efficient system with non-ozone depleting Puron® refrigerant, it adds up to a sound choice for your budget and the environment. “Nobody can go back and start a new beginning, but anyone can start today and make a new ending.” Maria Robinson Congratulations South Summit 2009 Seniors! - May 29, 2009 Hatch introduces bill to allow higher deductions for losses on investments Washington – U.S. Senator Orrin Hatch (R-Utah), along with U.S. Senator Blanche Lincoln (D-AR), yesterday introduced a bill that would increase significantly the amount of capital losses that an individual taxpayer can deduct in a year. The Capital Loss Deduction Limitation bill would raise the annual amount of capital losses a taxpayer can deduct to $10,000, from the current $3,000, and then index it for future inflation. On assets, investors receive ordinary income, such as dividends and interest, and capital gains, which occur when an individual sells his or her investment (stocks, bonds for example) for more than what was paid for it. A capital loss results when an individual sells his or her investment for less than what was paid for it. Capital losses can be offset against capital gains without limit. However, the current tax law limits the amount of capital loss that can be deducted against ordinary income to the amount of $3,000 per year. Unused capital losses can be carried over to future years indefinitely, where they can be used against future capital gains or again used to offset up to $3,000 in ordinary income. “This is a question of fairness,” said Hatch. “Allowing individual investors to deduct only $3,000 per year when their total losses may come to many times that much is simply not fair. The tax code taxes gains without limit, so it should not place such a restrictive limitation on losses.” Hatch noted that the $3,000 limitation has been in the tax law since 1978. “Had this limitation been indexed for inflation back in 1978, the $3,000 limit would instead now be about $9,700.” Many Americans experienced losses with their investments over the past couple of years, which has highlighted the fact that the current deduction limit is low and has not changed for 30 years. “I have spoken with many Utahns who are very upset about the low capital loss deduction limit,” continued Hatch. “One constituent with $60,000 in losses told me that unless he lived to age 90, he would not be able to claim his losses. This is not right and it is time we did something about it.” We repair all makes and models 24-hour emergency service $300 Questar rebates available $1,500 tax stimulus available Licensed and fully insured Radiant heating specialists 435-657-2000 |