It isn't limited to securities dealers. Read the statute at http://codes.lp.findlaw.com/uscode/26/A/1/P/V/A/1272Farmer Giles wrote:I think that only applies to certain securities dealers. Post the cite and lets have a look at it. Maybe the solution is to keep the lien static and avoid the impression of income. In fact I dont need to buy any bonds at all, I need to redeem, spend, and credit and debit them.Cpt Banjo wrote:Incidentally, another example of accruing income for tax purposes is original issue discount under Section 1272 of the Code. Suppose you buy a $10,000 zero-coupon bond (i.e., a bond that pays no interest) that matures in 7 years. Because it doesn't pay any interest, the bond is sold at a discount -- that is, you will pay less than $10,000 when you buy it. The bond will increase in value over time as it approaches the maturity date, and the law requires that you report this increase in value as income. In accounting terminology, the statute requires that you use the accrual method to report the income represented by the increase in the bond's value.
Your last two sentences make no sense, demonstrating that you don't know what you're talking about. There is no lien involved in the requirement to report OID as income.
There are many ways to avoid income in connection with debt forgiveness, and no one's trying to hide them because they're spelled out in Section 108 of the Code: http://codes.lp.findlaw.com/uscode/26/A/1/B/III/108it was clear there is at least one way for credit/default to come out tax-free. I guess you are obliquely referring to the “windfall deficiencies” from personal loan forgiveness. It’s off topic for now, but if the past is any experience you people are probably concealing the remedy there as well. Nonetheless it’s a piss-poor attempt at trying to frighten off anyone loking for remedy.
Unfortunately, none of the half-baked ideas you have posted falls within any of the exceptions in Section 108.
There's probably more money to be made correcting the mess someone has made taxwise by following idiotic tax-denier ideas such as you have put forth in your incredibly opaque language (read: word salad BS). It's like the old Fram oil filter commercials: "You can pay me now or pay me later."Amazing it never occured to you that there is actually more money to be made in freeing people than enslaving them. You lay many burdens on men’s shoulders, but lift not a finger to remove them.
There are many of us here that help people eliminate or minimize paying taxes by using methods that comply with the law and that will work. What we don't do is dream up some preposterous garbage that has a 100% probability of failing, and an only slightly smaller probability of resulting in sanctions for making a patently frivolous argument.
