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To: Redcoat LI

What I don't get is that if her fortune is $550 million, why is her income only $5 million?

I know interest rates are low, but surely she could do better than this.


3 posted on 05/14/2004 6:05:28 AM PDT by proxy_user
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To: proxy_user

Taxable and tax-exempt income is not true economic income. A lot of her assets are probably things like real estate, paintings, stock and the like. There would be no taxable or tax-exempt income on those until sold.


6 posted on 05/14/2004 6:09:30 AM PDT by conservative in nyc
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To: proxy_user
What I don't get is that if her fortune is $550 million, why is her income only $5 million?

As Usual,I'm Clueless.

Perhaps A More Financially-Savvy Freeper Could Explain This.

7 posted on 05/14/2004 6:11:33 AM PDT by Redcoat LI (What Is Man That Thou Art Mindful of Him)
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To: proxy_user
What I don't get is that if her fortune is $550 million, why is her income only $5 million?

This is her reported income for tax purposes. Her real income is probably much higher. Some of it is unrealized capital gains (assets went up in value, but she didn't sell them, so no tax is due).

The wealthy play by a different set of rules...

12 posted on 05/14/2004 6:26:15 AM PDT by CurlyDave
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To: proxy_user

In addition to what others have said, I gather about half her income is from tax-free municipal bonds, which usually have a lower rate of return than taxable investments because they're tax-free.


16 posted on 05/14/2004 6:38:44 AM PDT by maryz
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To: proxy_user

Unless she rents out the manions, cars, clothes, etc. they produce no income.


28 posted on 05/14/2004 8:56:11 AM PDT by cinFLA
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