deferred capital tax gains with only X% of realized capital gain

CFA Level III
#1

I am having a real hard time memorizing this formula, i can derive most of other tax formula but this one…, does anyone have an eaiser way of doing it??

r*=r(1-PdTd-PiTd-PcgTcg)

T*=Tcg(1-Pd-Pi-Pcg)/(1-PdTd-PiTd-PcgTcg)

FV investment = initial investment [(1+r*)^t (1-T*)+T*)

THIS ONE…is so brutal…

#2

I agree…

btw you forgot to add if the basis is different than the cost. on the last formula…

#3

make sure to know how to calculate the unrealized portion of the change in market value.

Mv1 - MV 0 - cg - div - int

MV1 - Mv0