How does the time period of the investment affect the return

Assignment Help Taxation
Reference no: EM13905548

1. Under what circumstances would you expect the after-tax return from an investment in a capital asset to approach that of tax-exempt assets assuming equal before-tax rates of return?

2. Laurie is thinking about investing in one or several of the following investment options:

Corporate bonds (ordinary interest paid annually) Dividend-paying stock (qualified dividends)

Life insurance (tax-exempt) Savings account

Growth stock

a) Assuming all of the options earn similar returns before taxes, rank Laurie's investment options from highest to lowest according to their after-tax returns.

b) Which of the investments employ the deferral and/or conversion tax planning strategies?

c) How does the time period of the investment affect the returns from these alternatives?

d) How do these alternative investments differ in terms of their nontax characteristics?

Verified Expert

The paper is in relation to taxation aspects related to investment alternatives. The various alternative investment options are evaluated and assessed under various aspects like taxation, time period of holding it, deferral/conversion tax planning, non tax characteristics, etc.

Reference no: EM13905548

Questions Cloud

Medieval guild system was a breakthrough in the rise : The overthrow of the medieval guild system was a breakthrough in the rise of the West and freedom in general. There's recently been a retrogression by way of mandatory professional licensure. Friedman discusses the problem generally, then talks speci..
Analysis to real-world business-IT scenarios : Analyze the design, selection, implementation, and management of these solutions (CRM, SCM, ERP). Be sure to provide examples of your analysis to real-world business-IT scenarios.
Determine the composition and temperature of product mixture : Ethylene (C2H4) at 25C burns with 50% excess air, also at 25C to produce a mixture of CO2, CO, O2, N2, H2O. The combustion chamber is WELL INSULATED. Determine the composition and temperature of the product mixture.
Calculate the total fine for an overdue hire : Display total number of vehicles, total amount of fees to be paid for a particular hire; List all overdue vehicles and the customer contact information; Calculate the total fine for an overdue hire; Find the most popular vehicle for hire so far
How does the time period of the investment affect the return : How does the time period of the investment affect the returns from these alternatives? How do these alternative investments differ in terms of their nontax characteristics?
Planned to finance the expansion through sale of securities : Texas Gold had planned to finance the expansion through a sale of securities, but market conditions were unfavorable for such a sale. A management meeting comprised of the president and vice presidents for accounting, finance and marketing was called..
Makes plastic tricycle-composed of three major components : Tots Toys makes a plastic tricycle that is composed of three major components: a handlebar-front wheel-pedal assembly, a seat and frame unit, and rear wheels. The company has orders for 12,000 of these tricycles. Current schedules yield the following..
Which investment likely earned a greater after-tax return : Cameron sells stock in Corporation X after three years and he sells the stock in Corporation Y after five years. Which investment likely earned a greater after-tax return? Why?
About the british invasion : A seminal contribution to the popular music industry of the nineteen-sixties came to be known as the “British Invasion”. This invasion can further be characterized as consisting of two schools- each one relying on a specific American musical style fo..

Reviews

inf905548

9/14/2017 5:04:18 AM

Expertsmind.Com has set great measures for task composing. Task prepared by you teaches me much about subject and additionally about task composing. I am awed your services.

Write a Review

Taxation Questions & Answers

  How he is treated between a partnership and a llc

Ben included Reilly's share of the profits for the 7/31/2012 fiscal year on Reilly's Form 1040 for 2012. This is Reilly's final 1040.

  Prepare the return with commercial tax

What amounts will Joe and Guy report on their individual Form 1040's related to Sun & Fun's 2012 activities and prepare the return with commercial tax prep software

  Investigate in depth the cases

gather and integrate your knowledge on the topics covered thus far; • investigate in depth the cases, rulings and legislation that are fundamental to taxation law; • demonstrate your ability to apply that knowledge to a hypothetical, practical situat..

  What spot exchange should one forecast five years

If PPP is expected to hold between the two countries, what spot exchange should one forecast five years into the future?

  What is rent-free business accommodation

Calculate Luke's assessable income (if any) in relation to items 1-3 above. Quote relevant legislation (you must be specific) and show all workings for each item.

  The madison restaurant was formed a s corporation at the

the madison restaurant was formed a s corporation at the end of last year. bob buron owns 60 of the stock manages the

  Jim is considering implementing a 401k program for its

jim is considering implementing a 401k program for its employees. the program plan will include the company matching at

  What should be the legal status of the luxury tax

What should be the legal status of the luxury tax? In other professional sports the collective bargaining agreement contains a salary cap that limits the payroll that each firm can spend.

  Show the appropriate income tax allocation

Create a memo to Texaco Inc's chief accountant showing the appropriate income tax allocation required for the above items, adding the appropriate balance sheet presentation

  Explain internal control system

Existing internal control system over cash admission fees.

  Tax return 1 corporate returnbackgroundjane collier james

tax return 1 corporate returnbackgroundjane collier james taye and steve allwine each own one-third of the common stock

  Question as a tax practitioner you frequently get people

question as a tax practitioner you frequently get people asking questions concerning the tax effect of property

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