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Rangel Failed to Report $75,000 in Income


Duncan

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Rangel Failed to Report $75,000 in Income

“Representative Charles B. Rangel has earned more than $75,000 in rental income from a villa he has owned in the Dominican Republic since 1988, but never reported it on his federal or state tax returns, according to a lawyer for the congressman and documents from the resort.

Representative Charles B. Rangel said through his lawyer that he did not know that he had to report the rent he received on the villa as income.

Mr. Rangel, chairman of the House Ways and Means Committee, which writes the federal tax code, bought the beachfront villa at the Punta Cana Yacht Club and has received twice-yearly payments from the resort, which rents the property for $500 or more per night…..”

http://www.nytimes.com/2008/09/05/nyregion/05rangel.html?_r=2&hp&oref=slogin&oref=slogin

Good to see Charley living up to his class warfare rhetoric about everyone paying their fair share.

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meh ...

The money was never sent to the Rangels directly, according to Mr. Davis and resort records, but was used to defray the mortgage the company gave them when they bought the villa and $23,000 in subsequent construction costs in 2003.
It doesn't look intentional, and $75,000 over 20 years isn't going to amount to that much. I'm sure he'll just yell at his accountant and pay the back taxes.
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This is a non-story.

Really? The head of the committee that writes the tax code and one of the biggest class warriors in congress is caught avoiding paying taxes and it's a non-story?

I guess if he was sucking off some guy in a bathroom that would be newsworthy.

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meh ... It doesn't look intentional, and $75,000 over 20 years isn't going to amount to that much. I'm sure he'll just yell at his accountant and pay the back taxes.

If "Mr. Rangel, chairman of the House Ways and Means Committee, which writes the federal tax code" can accidentally defraud the US government, maybe the tax code needs to be simplified.

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Well it's friday at 430. we agree on something. So it's probably time to go home.
Unfortunately you're both wrong.

U.S. citizens are taxed on their worldwide income. Some taxpayers may qualify for the foreign earned income exclusion, foreign housing exclusion, or foreign housing deduction, if their tax home is in a foreign country and they are either a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year, or are physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive months.

http://www.irs.gov/faqs/faq13-7.html

So don't you Floridians try any crazy tax avoidance schemes in the Caribbean, or you'll end up like Charlie here...

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The correct title to this story should be:

Representation without Taxation.

LOL That's great! :applause: :applause:

If he doesn't immediately redress the problem he should be booted from Congress and even if he does I think he should be put on probation. That's probably overly hard, but I think we need to start taking a really hard line with all of these bums. Too many of them have been breaking the law recently and we need to start reminding them or their people that they are not above the law.

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If "Mr. Rangel, chairman of the House Ways and Means Committee, which writes the federal tax code" can accidentally defraud the US government, maybe the tax code needs to be simplified.
The tax code probably does need to be simplified, but he likely would have made this mistake even under the simplest form of income taxation like a flat tax. The problem is that the bank was taking the rent money and paying it directly into his mortgage account without withholding any money, so it was easy to lose track of it.
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Well it's friday at 430. we agree on something. So it's probably time to go home.

Remember the old WB toon where the Sheepdog & Wiley Coyote go at it all day with typical mutual devastation and then at the end of the day, the sun's going down, a whistle blows, and they both walk over to a tree on the farm where there's a time clock and a rack of cards and they each grab one, punch out, make small talk, smile and say "have a good night, see ya tomorrow"---that's the picture I got. :D

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Not all that relevant to the subject but that guy has the worst voice in Congress. Why do they keep putting him on tv?

Off topic to your off topic... Anyone ever see Hercules in Manhatten. It was Arnold Schwartenegger's first movie and they do a pretty bad dub over of this very waspy voice. Apparently, they thought his accent wouldn't work. It's just very funny.

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Unfortunately you're both wrong.

U.S. citizens are taxed on their worldwide income. Some taxpayers may qualify for the foreign earned income exclusion, foreign housing exclusion, or foreign housing deduction, if their tax home is in a foreign country and they are either a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year, or are physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive months.

http://www.irs.gov/faqs/faq13-7.html

So don't you Floridians try any crazy tax avoidance schemes in the Caribbean, or you'll end up like Charlie here...

correct answer, and even if you are working out of the US, it's all taxable unless you're gone for 330 days in a calendar year.

However he could've incorporated the property in that country and had the money loaned to him and never pay it back.

Many people that make offshore money keep it in an offshore bank, say in Hungary. Have the bank issue a visa/debit card to the account, then only use the Visa card when traveling abroad. No fuss no muss :D

Mosty republicans though mind you :laugh:

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