Posted on 08/13/2006 8:22:23 PM PDT by WayneLusvardi
Another L.A. Times Unfounded Slur on a Republican Politician
L.A. Times
http://www.latimes.com/news/local/la-me-miller13aug13,0,2223572.story?coll=la-home-headlines
Official's Tax Break: on Firm Ground?
Rep. Miller has avoided paying millions on real estate profits. He says the sales were forced; cities' officials dispute that. By William Heisel, Times Staff Writer August 13, 2006 When U.S. Rep. Gary Miller (R-Diamond Bar) sold 165 acres to the city of Monrovia in 2002, he made a profit of more than $10 million, according to a financial disclosure form he filed in Congress. Ordinarily, he would have had to pay state and federal taxes of up to 31% on that profit. Instead, Miller told the Internal Revenue Service and the state that Monrovia had forced him to sell the property under threat of eminent domain. That allowed him to shelter the profits from capital gains taxes for more than two years before he had to reinvest the money.
Note: L.A. Times reporter William Heisel is using hyperbole and contradictory statements in the above story to cast aspersions on U.S. Congressman Gary Miller. This writer has negotiated and appraised dozens of what are called "voluntary condemnations" for many public agencies and there is nothing illegal or improper about them. In the fourth sentence the L.A. Times reporter contradicts himself when he says that Rep. Miller was allowed to shelter taxes on the gain on the sale of the property for two years --- that isn't the same thing as "avoiding taxes" as reported in the sub-headline. I.R.S. guidelines allow for a two year deferrment of taxes on a "voluntary condemnation." Rep. Miller could not have availed himself of the two year tax deferment without a letter from the City of Monrovia certifying that the transaction was a "friendly condemnation." Also it alleges that U.S. Congressman Gary Miller "made a profit of $10 million." What it doesn't say is that he probably was prevented from a profit of many, many more times $10 million if he had been allowed to develop the property. More tabloid journalism from the mainstream media. Now all we're waiting for is the L.A. Times to drag another one of Governor Schwarzenegger's ex-girl friends to testify against Rep. Miller to try and besmirch his reputation.
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