Up 23%. Yes, some of this is driven by the aluminum body F150, yet there still is a lot of steel that goes into this truck and other cars they sell. GM numbers coming out later.
"If the Lender "Forgives" the Deficiency: Tax Implications
On the other hand, the lender may choose to forego pursuing a deficiency judgment, forgive the deficiency amount, and issue you a 1099-C (“Cancellation of Debt”) form instead.
“Cancellation of Debt” as Taxable Income
If a short sale results in a deficiency, but the lender decides not to come after you for payment and forgives the debt, this means you are no longer under an obligation to repay the lender. The lender is then usually required to report the amount of the cancelled debt to you and the IRS on a Form 1099-C. If this occurs, you may have to include the forgiven amount as income for tax purposes.
Example. As in the example above, let’s say you complete a short sale by selling your property for $200,000, but you owe the lender $250,000. The deficiency is $50,000. If the lender decides not to try to obtain a deficiency judgment and issues a 1099-C instead, then you have received a cancellation of debt in the amount of $50,000. This is generally considered taxable income to you.
Mortgage Forgiveness Debt Relief Act of 2007
You might be able to escape tax liabilty for a short sale deficiency if you can meet the requirements under the Mortgage Forgiveness Debt Relief Act of 2007. This Act allows taxpayers to exclude certain types of forgiven debt from their taxable income, as long as the forgiven debt was used to:
buy, build, or substantially improve a principal residence, or
to refinance debt incurred for those purposes.
This exclusion only applies to debt that was forgiven in 2007 through 2014. And you can only exclude $1 million of forgiven debt, or $2 million if you are married and filing a joint tax return."
Since you brought up the house, if you short sell your house for less than your loan, you do owe taxes on that "gain". Although Congress waved that charge with the huge number of short sales after the housing collapse.
Argue all you want, call me stupid, I gave you the facts and where you can find them, that is all I can do….
Q1 10Q page 2, gain on extinguishing debt $313.7 million.
You would have to pay taxes if you sold the bonds to the government for less than you paid for them, but the example you picked has never happened.
But if you sold bonds to the public for $100, you take $100 in. Then if you buy them back for $40, you realize a cash gain of $60 and that has to be realized as income.
to give them time to work out a new contract and continue working. Seems like the Union is not quick to strike.
"Just hours before the October 1st deadline, Cliffs Natural Resources and its unions have agreed to extend the current labor contract.
According to the USW, the extension is for 30 days, with the option to continue extensions beyond that as well.
The update says that the bargaining committee on the union side feels there has been progress during the talks on some issues, but they remain far apart on many others.
The bargaining team is heading home for now, but the committees will continue to be in contact with each other.
Negotiations will continue, and the union says it remains committed to bargaining for as long as necessary to reach a fair agreement.
Workers are being encouraged to continue reporting for their shifts, and to focus on safety.
Meetings have been scheduled at the local halls for updates.
Local 2705: Wed. Oct. 14 at 7:30 pm.
Local 6860: Tues. Oct. 20 at 4 pm."
Ease up a little, going to my tax statement I made, if they bought $1 billion in bonds for $300 million, they would owe taxes on $700 million of income.
Well said. I believe CLF has a winning business model for all miners by supplying local markets with a value added product. CLF has to get this out into the general market, better than Icahn rambling on for 45 minutes or a Tesla Model X. With Glencore in the news, now would be a great time to explain the future business model of mining.
LG is looking at the business and he wants debt to be reduced and will buy bonds over shares. Now, when you buy a bond at a discount, the company will have to post that discount as income since you got face value for that bond when issued. Well, that income comes with something the IRS calls taxes. LG has to be careful that they either have the deductions to offset that tax, or cash to pay the tax.
I agree, CLF is way ahead of the rest of the miners with debt reduction, asset sales and changing their business model. The difference is Glencore is getting lots of positive press over the last couple days. Does this stuff just happen? No, you can bet there is a Glencore PR department pulling the strings behind the scene.
Page 65 of the last 10Q:
"At June 30, 2015 , we had a derivative asset of $7.5 million , representing the fair value of the pricing factors, based upon the amount of unconsumed tons and an estimated average hot-band steel price related to the period in which the tons are expected to be consumed in the customer’s blast furnace at each respective steelmaking facility, subject to final pricing at a future date. This compares with a derivative asset of $63.2 million as of December 31, 2014 . We estimate that a $75 change in the average hot-band steel price realized from the June 30, 2015 estimated price recorded would cause the fair value of the derivative instrument to increase or decrease by approximately $25.0 million, thereby impacting our consolidated revenues by the same amount."
I know you have been tracking hot band steel prices, has it dropped $75 from June 30?
I don't read Jeff's post, but I use his activity as a sign that the price is close to a bottom. I have noticed when he really ramps up his postings and constantly replies to himself, the stock bottoms and it is a great time to buy. Just wish I could find a poster like him that signals when CLF is reaching a top.
I got it, have this picture of LG working in the local Best Buy stuck in my head. Trying to get it out and was the reason I didn't want to reply.
I believe something like this was an option, but they decided the CCAA allowed them to wipe clean $700 million in liabilities that makes these assets easier to sell. APIO continues to make money because of their low cost.
Now would be a good time for CLF to buy a few million shares, may spark a short covering. Really need to see 10 million shares a day which at the current price is not that much money.