What would you recommend toshiaki do in order to enhance

Assignment Help Taxation

Reference no: EM133354176

Question: Toshiaki Minamiyama is a successful business executive. Over the years, he has allocated a portion of his large salary to the building of an investment portfolio. He currently has a net worth of $800,000 (exclusive of retirement plans), as follows:

Personal assets:
Automobiles	$ 30,000
Sailboat	29,000
House	220,000

Investment assets:
Corporate and government bonds (average interest return-10%)	200,000
Common shares of public corporations	306,000
Rental real estate	360,000
	1,145,000
Liabilities:
First mortgage on house (interest at 9%)	(150,000)
Term financing on sailboat (12%)	(15,000)
First mortgage on rental real estate (10%)	(180,000)
Net worth	$ 800,000

Toshiaki seldom trades his investments as his strategy is to hold various types of investments for a long time in order to delay any tax that may occur on their disposition. (He is in the 45% tax bracket.) In fact, he chose not to dispose of any investments when he needed money to purchase his house and sailboat.

Required: From a tax planning perspective, what would you recommend Toshiaki do in order to enhance his wealth accumulation? If possible, quantify how he would benefit from your recommendations, assuming a five-year time period.

Reference no: EM133354176

Questions Cloud

Discuss this proposal in your analysis of minimum federal : which would have required that people making over one million dollars to pay no less than 30 percent of their income in taxes. Discuss this proposal

Automatic search in structure of operating system : Describe how it would be the iterative search of a file and the automatic search in the structure of an operating system.

How these changes affect financial planning strategies : Evaluate how these changes affect financial planning strategies. provide a thoughtful and well-composed response to the question. Your response should address

Work collaboratively on personal or professional project : Describe how you could work collaboratively on a personal or professional project. Describe how you can share a file or folder as you collaborate with teammates

What would you recommend toshiaki do in order to enhance : what would you recommend Toshiaki do in order to enhance his wealth accumulation? If possible, quantify how he would benefit from your recommendations

How map determines particular operating system : A security student is analyzing how map determines a particular operating system.

Creation process of your prototypey explore : Creation process of your prototypey explore and employ appropriate prototyping tools and develop a prototype to test the user requirements for the selected end

Define the linear transformation : brief explanation confirming that your chosen matrices form a counter example - Define the linear transformation

Why aaron disagrees and contends that he is an employee : Green maintains no health or retirement plans for its drivers, and each year it reports their income by issuing Forms 1099-MISC (and not Forms W-2).

User Account

All Pages