Publisher's Synopsis
Whole America is in shock to learn the size of Individual Retirement Account (IRA) of the Republican Presidential candidate Mitt Romney. Some experts have estimated the value of his IRA over $100 Millions. Pundits are scratching their head, how can it be? Isn't there a contribution limit? How can one amass $100 millions in a retirement account? Did Mitt Romney violate laws? Why didn't IRS check? Along with the tax debate, from media reports, it appears to me that people would probably be not so shocked if money was in the taxable account. But because money is in an IRA, people want to know how it was done. If it was done legally than they can also use the same method and shelter their assets. It is a great opportunity to learn. Almost $17M in long-term capital gains, more than $3M in dividends and deduction of $4.5M is what made his tax rate to drop. Set aside the politics for a moment, whatever he did to have such large deduction, it worked well with the IRS, a lesson to be learned. There is even a bigger lesson than deductions - he didn't created much in the ordinary income that is taxed at higher rate; and that amount is also very well structured. Hence, I think the whole tax return is very good example for all of us to learn how to structure ordinary income, how to take deductions and reduce taxable income.
