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DOJ Allows Bank of America to Deduct $12 Billion of $17 Billion Settlement

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posted on Aug, 22 2014 @ 11:57 AM
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a reply to: Hoosierdaddy71

From Forbes
BofA Grabs $12 Billion Tax Write-Off From $17 Billion Mortgage Settlement

It's not just me saying it...
Again BOA will take 12 billion in write- offs incurred from the 17 billion dollar government imposed Mortgage Settlement...


edit on 22-8-2014 by HardCorps because: (no reason given)




posted on Aug, 22 2014 @ 11:57 AM
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a reply to: Hoosierdaddy71

Pay now, get a tax break from it later. how is that any different?



posted on Aug, 22 2014 @ 12:00 PM
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originally posted by: HardCorps
a reply to: Hoosierdaddy71

From Forbes
BofA Grabs $12 Billion Tax Write-Off From $17 Billion Mortgage Settlement

It's not just me saying it...
Again BOA will take 12 billion in write- offs incurred from the 17 billion dollar government imposed Mortgage Settlement...



Does it not say 4 billion?



posted on Aug, 22 2014 @ 12:03 PM
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a reply to: HardCorps
From you Forbes link:
_javascript:quote()

Not everyone is pleased that BofA gets to pass on $4 billion to taxpayers, though the $4 billion figure was confirmed by a bank spokesman. Some lawmakers and consumer advocates say the DOJ and regulators need to take taxes into account in touting the settlement figures.


It says it right there, 4 Billion dollars. That is how much they will not be paying in taxes, because they are allowed to write off 12 Billion dollars. They will not be paying taxes on what they are allowed to write off, saving them 4 Billion.



posted on Aug, 22 2014 @ 12:04 PM
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originally posted by: EyesOpenMouthShut
a reply to: Hoosierdaddy71

Pay now, get a tax break from it later. how is that any different?


The whole point of this thread was that boa would save 7/8 of the fine. That's not true. They will save 4 of the 17 billion. That less than 1/4. I'm not arguing that they will not pay the whole fine.



posted on Aug, 22 2014 @ 12:05 PM
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originally posted by: butcherguy
a reply to: HardCorps
From you Forbes link:
_javascript:quote()

Not everyone is pleased that BofA gets to pass on $4 billion to taxpayers, though the $4 billion figure was confirmed by a bank spokesman. Some lawmakers and consumer advocates say the DOJ and regulators need to take taxes into account in touting the settlement figures.


It says it right there, 4 Billion dollars. That is how much they will not be paying in taxes, because they are allowed to write off 12 Billion dollars. They will not be paying taxes on what they are allowed to write off, saving them 4 Billion.



Exactly!



posted on Aug, 22 2014 @ 12:06 PM
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a reply to: Hoosierdaddy71

actually it says

Assuming BofA does not deduct the $5.02 billion in civil penalties, the bank’s deduction is worth $4.0705 billion. If the bank succeeds in writing off the full $16.65 billion, including the civil penalties, its write-off is worth $5.8275 billion.


US. PIRG has a better write up on how this is all playing out, tax wise-- and their fear if BoA will manage to write off the entire amount



posted on Aug, 22 2014 @ 12:10 PM
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originally posted by: HardCorps
a reply to: Hoosierdaddy71

actually it says

Assuming BofA does not deduct the $5.02 billion in civil penalties, the bank’s deduction is worth $4.0705 billion. If the bank succeeds in writing off the full $16.65 billion, including the civil penalties, its write-off is worth $5.8275 billion.


US. PIRG has a better write up on how this is all playing out, tax wise-- and their fear if BoA will manage to write off the entire amount



If they have better accountant's than the feds...witch they prolly do..lol



posted on Aug, 22 2014 @ 12:38 PM
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originally posted by: butcherguy
a reply to: HardCorps
From you Forbes link:
_javascript:quote()

Not everyone is pleased that BofA gets to pass on $4 billion to taxpayers, though the $4 billion figure was confirmed by a bank spokesman. Some lawmakers and consumer advocates say the DOJ and regulators need to take taxes into account in touting the settlement figures.


It says it right there, 4 Billion dollars. That is how much they will not be paying in taxes, because they are allowed to write off 12 Billion dollars. They will not be paying taxes on what they are allowed to write off, saving them 4 Billion.



BoA the bank itself said in a "Press release" they would be taking the 4 billion... everyone else is saying ... it'll be a hell of a lot more


In general, fines and penalties paid to the government are not deductible, and in this case that agreed civil penalty is $5.02 billion.



the remainder of the settlement through soft money programs... those so called homeowner mortgage restructures. some 7 billion is going there... but that's not funded with the banks money... That money is coming from investors and Fanny...
there's another 4 billion in legal fees and. costs that they get to write off too.

so their only out of pocket obligation is the 5.02 billion... yet thanks to tax law ---BofA gets to pass on $4 billion of the 5.02 owed on to taxpayers! Get it now????

But there is a loophole
and BoA could very well end up writing all it off...



edit on 22-8-2014 by HardCorps because: (no reason given)

edit on 22-8-2014 by HardCorps because: (no reason given)



posted on Aug, 22 2014 @ 12:47 PM
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originally posted by: Hoosierdaddy71

originally posted by: HardCorps
a reply to: Hoosierdaddy71

actually it says

Assuming BofA does not deduct the $5.02 billion in civil penalties, the bank’s deduction is worth $4.0705 billion. If the bank succeeds in writing off the full $16.65 billion, including the civil penalties, its write-off is worth $5.8275 billion.


US. PIRG has a better write up on how this is all playing out, tax wise-- and their fear if BoA will manage to write off the entire amount



If they have better accountant's than the feds...witch they prolly do..lol


Way, way better than me!!!
All this tax law crap make's my head hurt!

Lets go get a beer and spend the rest of the day discussing the virtues and vices of big boobs on skinny waitresses...



posted on Aug, 22 2014 @ 12:53 PM
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Yup, kind of gets you riled up when you learn that they got a slap on the hand and the taxpayer foots the bill for most of it. The rest is passed on to the consumer anyway, the bank officials who authorized this probably got no personal penalty.



posted on Aug, 22 2014 @ 01:34 PM
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originally posted by: HardCorps

originally posted by: Hoosierdaddy71

originally posted by: HardCorps
a reply to: Hoosierdaddy71

actually it says

Assuming BofA does not deduct the $5.02 billion in civil penalties, the bank’s deduction is worth $4.0705 billion. If the bank succeeds in writing off the full $16.65 billion, including the civil penalties, its write-off is worth $5.8275 billion.


US. PIRG has a better write up on how this is all playing out, tax wise-- and their fear if BoA will manage to write off the entire amount



If they have better accountant's than the feds...witch they prolly do..lol


Way, way better than me!!!
All this tax law crap make's my head hurt!

Lets go get a beer and spend the rest of the day discussing the virtues and vices of big boobs on skinny waitresses...


Sold!



posted on Aug, 22 2014 @ 04:14 PM
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a reply to: rickymouse

agreed, the BOA executives will still be collecting their pay checks and receiving their bonuses.The money for the fines will be coming from increased fees to their customers.

It seems pretty simple to me lets say BOA makes 17 bil in profit this year,they give that money to the fed to pay the fine.
Now at tax time do they get to claim zero profits for the year? if so then they got to write off the fine.
At tax time if they have to claim all of 17 bil as profits and pay taxes on it ,even though they don`t have it anymore,then they didn`t get any write off.

It sounds to me like they are going to be allowed to claim less than the 17 bil profits which will put them in a lower tax bracket and save them money.
If that is the case well then I have just one question,
can I deduct criminal fines (like a speeding ticket) from my taxes?
no?
I didn`t think so.
some animals were created more equal than others.



posted on Aug, 22 2014 @ 04:59 PM
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I don't see how it matters if they are writing off 4 b or 12 b,well i do but how are they allowed to write off any of it?
So they screw the the tax payer over, then are able to screw the tax payer over for screwing the tax payer over....
That sentence broke my record



edit on ndFri, 22 Aug 2014 16:59:21 -0500America/Chicago820142180 by Sremmos80 because: (no reason given)



posted on Aug, 22 2014 @ 07:56 PM
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Can someone explain something to me, preferably like I'm a six year old? I understood this to mean that they would deduct this large sum of money and thus they would simply be paying less, rather than getting this money back. Is this correct or am I mistaken, and they will be getting our tax dollars from the federal government?



posted on Aug, 23 2014 @ 11:02 AM
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a reply to: JiggyPotamus

Okay... so the bank worked out a settlement with the feds...
The civil penalty is $5.02 billion.
and they agreed to provide another 7 billion in homeowner mortgage readjustments...
And with another 4 billion spent on their legal defense and other fees the total came up to 17 billion...

Now that 7 billion for home owners... that money will be packaged up as a finical instrument and be sold to investors... exactly in the same way they got into this mess in the first place... so the bank isn't going to spend a dime of their own money on that... but thanks to our screwy tax laws they get to claim it on taxes...

Now they already spent that other 4+ billion on legal fees ... that too they get to write off...

and that takes us back to The civil penalty is $5.02 billion. their only real out of pocket expense...

Now they can't write that off but they have so many deductions coming from other places...They will essentially be able to knock off 4. billion of the 5.02 they own the government...

But their not done yet... They have a team of tax law attorneys looking for more loopholes... in an attempt to 'not' have to pay out any money at all!

I know all this crap makes me dizzy too... and the more you study it the more it'll make your head hurt too.



posted on Aug, 23 2014 @ 11:57 AM
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Just goes to show bankers are wankers.



posted on Aug, 24 2014 @ 12:58 AM
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I sure wish I could defraud an economy for several hundred billion dollars, then when caught only have to pay back 10% of it, and then use tax laws to set myself up to really only pay back 3% of it.

If you want a case where vigilante justice needs to happen stop looking at Ferguson. Start looking at banking execs.



posted on Aug, 24 2014 @ 11:54 AM
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Aaaarrrggghhh!"!!!!



posted on Aug, 25 2014 @ 12:47 AM
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a reply to: Hoosierdaddy71

no it comes from predatory lenders selling so called subprime loans knowing well in advance the the person would probably miss a payment they structuring the loan so that every time they were late the loan payment would nearly double till it got to the point the person would default then then would sell property again and again and again. basically acting like loan sharks who needs a leg breaker when you have a sheriff to evict.







 
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