Quote Originally Posted by 777 View Post
Tax is a personal responsibility Not Harmoney's. Why do you expect them to do your work? The service charge IS an expense against earning income, therefore deductible. The charge-offs are capital losses.
Agree.

Quote Originally Posted by Bjauck View Post
Harmoney is already seeking a ruling from the IRD. Companies often seek rulings from the IRD on tax implications, to their shareholders or investors, of proposed actions or payments. It saves their investors and their expensive tax accountants having to duplicate research into the tax consequences. I am surprised that Harmoney have not already obtained such a ruling on service charges and charge-offs for the various types of investors.
I dont think they will be able to get a ruling from IRD as the outcome is fact specific, not a matter of interpretation which is all a ruling can be on. Per my comments above, I believe my situations allows it but others investing directly doesn't. IRD will only be able to issue a ruling saying interest is taxable, fees are deductible but charge-offs depend on the situation of the investor. Which isn't very useful. I would be surprised if Harmoney even tried as it would be a great way to waste $50k+ on fees.