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A taxpayer can invest $1,000 in a money market fund that yields an annual pretax rate of return of 8%, or buy an acre of land for $1,000.
A taxpayer can invest $5,000 in a common stock that pays no dividends but appreciates at a rate of 8%.
A corporation can invest $10,000 in preferred stock that pays a 6% dividend and does not appreciate in price.
Suppose a taxpayer, when 25 years old, made one tax-deductible $2,000 contribution of her after-tax salary to a deductible IRA.
A taxpayer is about to receive a $1,000 bonus payment from his employer. He would like to put this bonus into a retirement account.
A taxpayer wants to invest the maximum allowed in his retirement account. He has come to you for advice as to whether he should contribute.
The taxpayer expects her tax rate to decline from the current 28% to 20% when she retires in 40 years. Should the taxpayer convert to a Roth IRA?
Many taxpayers who elected to convert the funds in their traditional deductible IRAs to Roth IRAs in the summer of 1998 converted back to traditional IRAs.
Suppose the United States were to convert its tax system from an income tax to a national sales tax on sales of goods and services.
Suppose the United States were to convert its tax system from an income tax to a flat tax.
Assume you are an individual taxpayer. If you expected your marginal tax rate to decline in the next period, what tax planning might you undertake.
Suppose the taxpayer can time when he is to receive $100,000 of income that is fully taxable.
Suppose a taxpayer invests $100,000 in a partnership. The taxpayer faces a personal tax rate of 70% and a tax rate on capital gains of 28%.
Before paying himself any salary or dividends or taking fringe benefits, the corporation has taxable income of $100,000.
A taxpayer owns two separate companies. Company A is in the 35% marginal tax bracket and company B is in the 15% tax bracket.
A taxpayer owns and operates an art gallery with a large inventory of paintings held for sale to customers.
Suppose a corporation (the investor company) owns 164 million shares in another corporation (the investee company).
A taxpayer owns 100,000 shares of Microsoft Corporation, currently valued at $10 million. The taxpayer purchased the stock for $10 per share.
A taxpayer suffered a $20,000 capital loss early this year (from selling some securities) and is considering two alternatives for generating extra income.
Taxpayer A earned $50,000 working as a carpenter during the year. Taxpayer B, also a carpenter by trade, worked the entire year.
A taxpayer is forming a new corporation and has $500,000 to invest in her company. Following the advice of her tax consultant.
A taxpayer uses borrowed funds to acquire non-dividend-paying corporate stock. Note that interest on borrowed funds may be deducted.
The CEO of ABC Corporation is a dog lover. He and his spouse like cocker spaniels and have a purebred male cocker spaniel.
The interest income on bonds issued by tax-exempt organizations is often exempt from federal taxation in the United States.
Why does the length of the holding period affect the after-tax rates of return per period on SPDAs and not on money market accounts?