As I went thru the Study Session 4 on Individual Taxes, I am blown away with the number of formulas to know. I don’t remember these formulas last year. Anyone making sense of these formulas?
Most of the formulas are time value of money that are modified by the various taxes. It helps if you go through the formula slowly and think about the impact of the tax on the result.
They are really just rate of return and TVM problems where you make adjustments to the i for taxes. If you view them that way, I think you’ll be able to reason your way through most of them. Half the time, I end up using a different formula than the answer shows but get to the same number.
A lot of formulas indeed
You’ll learn to love any subjects in LIII with an equation.
there seem to be a lot of forumlas to begin with but there are really only 2 different ones that you build on for different senarios. And actually they are v intuitive so you may not need to learn them.