Tax effect whether it is salary-dividends or cash withdrawal

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Reference no: EM131092429

The following facts and circumstances are based on your written correspondence to me dated March 20, 2016. If these facts are incomplete or incorrect, please let me know as soon as possible. You are currently age 60 and single, you have recently retired from IBM. Your 401(k) fund is currently valued at $690,000. Your desire is to open a used car business that will be located at 210 Ocean View Drive in Pensacola, Florida and your estimated taxable income for your used car business is $300,000. Your personal wealth includes investments in land, stocks, and bonds which is approximately valued at $14,000,000. Last year you reported interest income of $20,000 and dividend income of $6,000. The $14,000,000 includes land currently appraised at $9,000,000 that was purchased in 1966 for $450,000. How would you approach this deliverable: Consider the type of business and the tax effect whether it is salary, dividends, or cash withdrawal?

Reference no: EM131092429

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