how are you studying the whole taxes section? i have such a hard time with this :-(((

Honestly there is no quick fix. Gotta put the time to memorize. To keep it simple though there is 3 main sections 1) Know the calculations for normal situation, tax deferred and tax deferred with different cost base and tax exempt 2) Know the 3 ways to calculate taxes (credit, exemption, deduction) 3) Know the difference between Tax Free Gift, a Beqest the donor pays and bequest the recipiant pays .

KNOW WHAT YOU ARE DOING. I can’t stress this enough on the tax formulas. They are very simple if you think about them logically.

Exactly. However that one long@ss tax formula where you have to know the CG, Div, and Interest %'s…I might just punt.

and none have been asked in prior exams (2008 - 10), so I may punt as well. although i think core capital/excess capital is new this year so that might be worth knowing

^ Mcap taxes was moved to LIII from LII in 2010.

Paraguay is 100% correct. Memorizing is not the answer and will likely cost you more brain cells. Think about what you are trying to accomplished and when the tax will be applied.

I have a good feeling tax will be in the afternoon. Also knowing the tax formulas and information helps considerably on the IPS return requirement calculations.

Def feeling a gift vs bequest sub question on individual IPS.

Everyone that is punting this one please make sure to show up for the exam. The rest of us would enjoy the help.

I memorize all the tax formulas, what a waste of time. There are more important things to know, like the 6 techniques to evaluate emerging markets.

bpdulog Wrote: ------------------------------------------------------- > I memorize all the tax formulas, what a waste of > time. There are more important things to know, > like the 6 techniques to evaluate emerging > markets. Why a waste of time they are easy and fairly intuitive? Can be done in 2-3 hours for the tax formulas.

I could’ve used those 2-3 hours and nailed GIPS or Equity, 2 sections I’m still not comfortable with. No point in bitching now, I know. I’m just gonna move forward. If it shows up in an item set, it’s only worth 3 points. Given the nature of the material, I doubt it would show up in the morning.

bpdulog Wrote: ------------------------------------------------------- > I could’ve used those 2-3 hours and nailed GIPS or > Equity, 2 sections I’m still not comfortable with. > No point in bitching now, I know. I’m just gonna > move forward. > > If it shows up in an item set, it’s only worth 3 > points. Given the nature of the material, I doubt > it would show up in the morning. I think you will get 18 points for TAX and gifting. Full vignette in the afternoon. Everything in that section seems testable.

Because taxes have a direct impact on the returns of an investment and influence asset allocation, my opinion is that taxes are extremely important.

the problem with taxes is that this is a global exam. I realize that there aren’t that many possible ways to tax, and that there are the “main” ways of taxing, but its ultimately not just not fair to test a ukrainian, for example, on the residual value of a bequest. i think ukraine was a flat tax regime, one of only two

It wouldn’t good for clients eventually if that same Urkrainian Charterholder then consulted client in other tax regimes :-), he’d better spend the 2/3 hours or days now.

I think this was posted by bpdulog in one of the threads. Helps in memorizing: Tax formula The denominator is the same on all of them, [1+re(1-tie)]^n(1-Te) I use the second formula with [1+rg(1-tig)]^n(1-Tg) as my base. This assumes the donee pays the tax. For a tax free gift, remove (1-Tg). Donor pays tax, add +Tg*Te after (1-Tg). So it should be (1-Tg+Tg*Te). Charitable gift adds (1+rg)^n+Toi in front. So it should look like (1+rg)^n+Toi[1+rg(1-Tig)]^n(1-Tg)]