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Old 12-14-2005, 08:32 PM
broiler broiler is offline
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Join Date: Oct 2004
Posts: 47
Default Re: Is r***back taxable income?

Capital gain? Are you joking? Rakeback does not involve a sale or deemed sale of property in any way. Your description of how a pro gets capital gain is not correct. A rakeback payment is a return of a deduction from an item that is treated as ordinary income, therefore it is also ordinary income. There is no argument that a rakeback payment is capital gain.
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