Can you think how you could use a straddle to postpone taxes

Assignment Help Econometrics

Reference no: EM131431313

Another popularly used tax avoidance device before 1981 was a straddle, in which an individual would at the same time sign one contract to buy a commodity (like wheat) at some future date, and another contract to sell the same commodity at a date shortly earlier or later. Thus, when she had a gain on the first contract, she generally would have a loss on the second. What she gained on one, she lost on the other. Can you think how you could use a straddle to postpone taxes? Prior to 1986, long-term capital gains were taxed much more lightly than short-term capital gains. Can you think how you could use straddles to take advantage of this difference?

Reference no: EM131431313

Questions Cloud

Describe the male gametophyte of a seed plant : 1. Describe the male gametophyte of a seed plant. 2. Describe the female gametophyte of a seed plant.

How does that affect your answer as to who benefits : Assume that the government allows wealthy individuals to borrow to buy tax-exempt bonds. How does that affect your answer as to who benefits?

Which of the both shift aggregate demand left : Which of the following both shift aggregate demand left? According to the short-run Phillips curve, if the central bank increases the money supply, then.

Simply elaborations on hominoid behaviors : Lessons from Apes: We have examined ape tool use and hunting behavior and seen that females are involved in tool use, that there may be evidence of cultural variation across chimp populations, and that many human behaviors are simply elaborations ..

Can you think how you could use a straddle to postpone taxes : Can you think how you could use a straddle to postpone taxes? Prior to 1986, long-term capital gains were taxed much more lightly than short-term capital gains. Can you think how you could use straddles to take advantage of this difference?

Confidence interval for population variance in tarmac times : Airlines would like to reduce tarmac times, of course, and lower the variance. Is there any evidence to suggest that the population variance is less than 100 minutes? Justify your answer.

Difference between sporophytes and gametophytes : 1. Identify one reproductive difference between sporophytes and gametophytes. 2. How do gymnosperms vary from other seed-forming plants?

Why public drinking water should be monitored : State two reasons why public drinking water should be monitored. Support your opinion with facts and examples.

Confidence interval for the population standard deviation : Find a 98% confidence interval for the population variance in depth to water at this site.- Find a 98% confidence interval for the population standard deviation in depth to water at this site.

User Account

All Pages