That really big $13bn payout that JPMorgan will have to make for all its financial shenanigans? Turns out a big chunk of it may be tax-deductable as a business expense. I'm sure the right wording is part of the negotiated points …
Well, at least Fox Business and the WSJ will be happy, I'm sure.
Tax breaks could ease pain of JPMorgan deal – Kim Dixon and Brian Faler
JPMorgan Chase has struck a tentative deal with the Justice Department to pay a record $13 billion over dodgy mortgage products — but the biggest U.S. bank may be able to slash that bill by paying Uncle Sam less in taxes. Details of the pact are now being finalized, but it is expected to include $9 billion paid to the government and $4 billion…
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Hooliganism, as committed by slippery snakes and sleazy weasels, no?
I'm pretty sure legal expenses are nearly always tax deductible business expenses.
It's not a matter of legal expenses (what they're paying counsel). As the laws are written (per the articles I've read), explicit fines are not deductible — but "damages" or other compelled payments are.
So if the $13bn includes $9bn in actual fines, and $4bn to the fund for distressed homeowners, the $4bn is deductible by JPMorgan. And if they get the $9bn worded right, that could be deductible, too.
Again, this is not all that unusual. I think the writer of the article you read may have misunderstood. To imply that JPM/Chase is somehow getting away with something that others don't is not really fair or accurate.
One explanation:
http://www.ehow.com/info_8598727_court-penalties-tax-deductible.html
I'm not saying its right or moral or something we want as a society. All I'm pointing out is JPM/Chase isn't doing anything or working out anything that is extraordinary.
Try these.
http://www.cracked.com/article_20643_the-5-most-cartoonishly-evil-banks-all-time.html
The ‘Winner’ is particularly scary. Not too big to fail, but to big to be stopped.
No, I understand. It's happened before and will happen again (unless Congress changes things). It's just worth noting that when MPM has $13bn of various penalties imposed on them, it doesn't mean they'll actually pay $13bn.
schlemiels. j.p.more on and on and on