Hi everyone, are Tax calculation like deferred, accrual basis or the charity gift tax really being tested in the real exam?
A look at the past AM papers available in the CFAI website would tell you that they are indeed tested.
But in the am past paper, we usually calculate the real return and add the inflation rate,then divide them by 1+ tax rate to get the required return before tax . it is much simple then those mentioned before.
The initial question was about Estate planning which is different from Required Return calculations. Both are tested heavily (In Spades as Magician said)!
Thx all. I will work hard on memorize the formula !
Individual Portfolio Management is probably the largest section on the Level III exam. I’d absolutely know all of those tax calculations. Kind of painful memorizing them but they’re not too difficult.