IRS, airlines at odds over issuing ticket tax refunds
IRS Tax Forum random observations III

Debt ceiling money (and tax) moves

I cannot believe we're still waiting for a debt ceiling resolution.

Really? You people on Capitol Hill are convinced that it's a good idea to play this poker game with our money? We'll remember. And your political future might be a bigger gamble than you expect.

As the debt drop dead date nears, folks are getting antsy about what to do with their money.

Reuters Money blog comes at the issue from the other side, suggesting 10 reasons not to move your money out of the market now.

Good points all, including the probability of government default remains low; we've been here before (sort of); and my favorite, smart investors adjust to market fluctuations, not political grandstanding.

I want to toss out one more reason to wait things out: taxes.

If you sell your assets, you could incur a tax bill.

Short-term capital gains, those owned for a year or less, will be taxed at your ordinary income tax rate. Long-term profoit taking, sales of assets held for more than a year, will be taxed at the more favorable capital gains rate, which for most investors is 15 percent.

Given Uncle Sam's financial situation that's causing all this dyspepsia, he'd appreciate you paying more taxes.

But you might want to thing twice (or more) before you call your broker.

In the meantime, check out The Fact Checker's look at the debt ceiling debate and the three previous instances -- in 1790, 1933 and 1971 -- when the United States could be seen to have defaulted on its obligations.

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