Discuss tax planning strategy for donna noble

Assignment Help Accounting Basics
Reference no: EM131873976

Question - Donna Noble, age 74, has $50,000 in a certificate of deposit paying 6 percent annual interest. In addition to this interest income, she receives social security and a modest pension from her former employer. Her marginal tax rate is 10 percent. Donna lives independently now, but she anticipates that in several years she will need to liquidate the CD to buy into an assisted living retirement home. She recently read a magazine article on the benefits of tax-deferred annuities and wonders if she should transfer her $50,000 savings into an annuity. Discuss whether this tax planning strategy is advisable for Donna Noble. What are two other strategies that she could also consider?

Reference no: EM131873976

Questions Cloud

Determining the good hashing method : Suppose we hash a message 'hello' using the following method.
What is the significance of the study : Describe briefly the methods the author(s) used to conduct this study. Explain/describe the artifact that is the subject of this article.
What is its debt-equity ratio-what is its equity multiplier : Levine, Inc., has a total debt ratio of .38. What is its debt-equity ratio? What is its equity multiplier?
Determining the current margin : You've received a $2 dividend per share over the course of your investment. DEF trades for $14/share today. Find your current margin.
Discuss tax planning strategy for donna noble : Discuss whether this tax planning strategy is advisable for Donna Noble. What are two other strategies that she could also consider
Fundamental legal principles : What are the most important things to remember about Fundamental Legal Principles, Analysis of Insurance Contract
Write two paragraphs to support the second claim of thesis : Write two paragraphs to support the second claim of your thesis, which was: they helps our enivornment.
Determine the yield to maturity : The? market's required yield to maturity on a? comparable-risk bond is 13 percent. The current market price for the bond is $880.
What is anne realized gain : The total cost was $20,000, and Anne deducted $13,000 as medical expenses. What is Anne's realized gain

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd