tax base of a liability

CFA Level I
#1

hi i am having a hard time trying to under stand the following tax base of a liability = carrying value of liability - amounts deducted on the tax return in future can some one please elaborate this for me. i am under the impression that the tax base would be something that will be deduded in future but this definition seems to be the other way round. what am i missing. thanks for your help kiran

#2

Hey Kiran, I have been struggling with this chapter for a while now. Read over Schweser, Stalla and the curricullum twice already… These guys do a much better job of it. Their reading on taxes is available for free. http://www.elanguides.com/samples.php best of luck!

#3

superfly, this was quite a nice reading. I took L1 in jun, and frankly, was always confused on ‘tax base of liability’ till I read this one. Great!

#4

Are you guys in Study Session 9? Hell of a chapter and the worst by a mile.

#5

Did any of you check out their reading on options? it was fanatastic!! They had it available for download for free before they put the taxes reading up. Fortunately I downloaded it. I suggest you guys also download the options video before they replace it with another one. Apparently they plan to put up a new reading every week. www.elanguides.com

#6

WOW!! Elan Guides… this IS a very well written chapter on taxes… Where’d these guys come from?

#7

What section is this from?

#8

This one gave me a tough time at first too…You’re confusing the Tax base with Cost Basis. The tax base is money not yet taxed. The Cost Basis is money that has been taxed. Hope this helps.

#9

Investor 83, with all due respect I don’t think your explanation is entirely accurate… Perhaps you mistyped something. Personally I feel that the rules in the elan reading along with their examples make total sense…

#10

just a generalization to get the main concept accross

#11

What really struck me is the difference in how differently Schweser and Elan handle LOS 37 h and i. It seems like Elan follows the curriculum more closely, and I like the color coding. I don’t know where Schweser gets its stuff from, but some of the stuff it mentions is not in the curriculum at all!

#12

Nice reading. I was always confused about this concept as well. Best of luck people!

#13

anyone still have the file don’t mind can email me? having a tough time on #37 collinyeo@gmail.com thanks