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Re: eddy2 post# 30692

Monday, 08/14/2017 11:01:47 AM

Monday, August 14, 2017 11:01:47 AM

Post# of 30846
An introduction too Septembers topic on taxable collateral.

Collateral obtained by reinvested earnings minus the banks capital costs are taxable regardless of expenditures.

After tax contributions i.e.: earnings that have been taxed can repurchase the taxable collateral deferring the taxs owed.

An example would be if a company payed taxs on a portion of there revenue and repurchased the treasury stock eliminating one the treasury stock owed as well a portion of the outstanding shares owed as collateral to the government for unpaid taxs. This can also be accomplished by the public purchasing shares as well but in that case shares would be transferred by a forward split of the stock back to the public at a par value " cost of administration ".

The administration cost is taxable revenue minus the wage cost to the company it self.

There is all so depreciation costs associated with the taxable collateral that is deductible of the taxable revenue collateral liability.

We don't want to forget that there is two parts too the collateral. One being the trinsic value minus depreciation the other being intrinsic value minus any taxs owed.

Because the taxs are deferred does not mean that they are forgiven. So they have to be kept on the books as a liability to the company but not nessesarly in the accounts payable if sold to the company with revenue that the taxs are paid or after taxable dollars provided by the public.

Another company can purchase stock of another but only after taxs are paid. They can't borrow money and buy another companies stock without first selling the taxable collateral or buying it back with funds that taxs are paid on.

This takes us too the term of laundering money were money has been obtained by scrupulous methods that has been never taxed and used to purchase equity where taxs are deferred.

Do your own DD on all topic matter that is brought up in discussion here.

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