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Posted by Rich Carreiro on April 9, 2007, 2:51 am
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[this is both silly and serious]
Now that the USPS is selling "forever stamps" (you buy them
at the then-current first class rate and can use them to
mail a piece of first class mail no matter what the rate has
gone up to by time of use), why doesn't the use of them once
rates have gone up trigger a cap gain? You bought it at $X
and are essentially redeeming it for $Y.
--
Rich Carreiro rlcarr@animato.arlington.ma.us
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Posted by Phil Marti on April 10, 2007, 9:28 am
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> Now that the USPS is selling "forever stamps" (you buy them
> at the then-current first class rate and can use them to
> mail a piece of first class mail no matter what the rate has
> gone up to by time of use), why doesn't the use of them once
> rates have gone up trigger a cap gain? You bought it at $X
> and are essentially redeeming it for $Y.
I'd argue that you paid for future service when you bought
the stamp. It's the same as an advance purchase plane
ticket vs a walk up fare.
IIRC they won't be sold until the next rate increase, and I
know I haven't seen any rules. If a secondary market does
develop, either legitimately or a black market, then you
would have a taxable gain when you sold them.
--
Phil Marti
Clarksburg, MD
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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Posted by Phil Marti on April 10, 2007, 9:28 am
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> Now that the USPS is selling "forever stamps" (you buy them
> at the then-current first class rate and can use them to
> mail a piece of first class mail no matter what the rate has
> gone up to by time of use), why doesn't the use of them once
> rates have gone up trigger a cap gain? You bought it at $X
> and are essentially redeeming it for $Y.
I'd argue that you paid for future service when you bought
the stamp. It's the same as an advance purchase plane
ticket vs a walk up fare.
IIRC they won't be sold until the next rate increase, and I
know I haven't seen any rules. If a secondary market does
develop, either legitimately or a black market, then you
would have a taxable gain when you sold them.
--
Phil Marti
Clarksburg, MD
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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Posted by Bill Brown on April 10, 2007, 9:28 am
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> [this is both silly and serious]
>
> Now that the USPS is selling "forever stamps" (you buy them
> at the then-current first class rate and can use them to
> mail a piece of first class mail no matter what the rate has
> gone up to by time of use), why doesn't the use of them once
> rates have gone up trigger a cap gain? You bought it at $X
> and are essentially redeeming it for $Y.
You're prepaying for a service so the fact that others are
paying more for the service by the time you use it doesn't
have a tax effect. I generally dislike analogies but here is
one anyway. If your logic is correct, when I fly for $400
sitting next to someone who paid $900 for the same flight, I
should recognize $500 of income.
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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Posted by Stuart A. Bronstein on April 10, 2007, 9:28 am
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> Now that the USPS is selling "forever stamps" (you buy them
> at the then-current first class rate and can use them to
> mail a piece of first class mail no matter what the rate has
> gone up to by time of use), why doesn't the use of them once
> rates have gone up trigger a cap gain? You bought it at $X
> and are essentially redeeming it for $Y.
For the same reason you don't have taxable income when you
use coupons in the grocery. It's a discount (that you pay
for by paying in advance and giving the seller the float)
rather than income.
Stu
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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