A post on Bloomberg.com by Jesse Drucker finally helps expose a part of why Mitt Romney wouldn’t release his tax returns. Essentially, he used the Mormon Church’s tax exempt status to defer taxes for over 15 years.
Romney used the tax-exempt status of a charity — the Mormon Church, according to a 2007 filing— to defer taxes for more than 15 years. At the same time he is benefiting, the trust will probably leave the church with less than what current law requires, according to tax returns obtained by Bloomberg this month through a Freedom of Information Act request.
In general, charities don’t owe capital gains taxes when they sell assets for a profit. Trusts like Romney’s permit funders to benefit from that tax-free treatment, said Jonathan Blattmachr, a trusts and estates lawyer who set up hundreds of such vehicles in the 1990s.
The entire article can be read HERE.
Just another reason why churches shouldn’t have tax exempt status.