P215. Q14, TDA account should use 0.2 rather than 0.4, because it is stock, how can answer use 0.4, which is interest income tax. answer wrong. P215 Q15, for taxable account, we should use (1+r*(1-t))^N=(1+0.07*(1-0.2))^20. the answer is wrong P215 Q17, answer is wrong, for TDA account, it should use (1-0.3)*(1+r)^N+t, the answer is missing “+t”, for tax-exempt account, it should be (1+r)^N, here, 0.4 is missleading. P215 Q18, the answer is not necessary, for heavy tax rate, we can not prove that (1+r*(1-t))^N
francisgy Wrote: ------------------------------------------------------- > P215. Q14, TDA account should use 0.2 rather than > 0.4, because it is stock, how can answer use 0.4, > which is interest income tax. answer wrong. > > P215 Q15, for taxable account, we should use > (1+r*(1-t))^N=(1+0.07*(1-0.2))^20. > the answer is wrong > > P215 Q17, answer is wrong, for TDA account, it > should use (1-0.3)*(1+r)^N+t, the answer is > missing “+t”, for tax-exempt account, it should be > (1+r)^N, here, 0.4 is missleading. > > P215 Q18, the answer is not necessary, for heavy > tax rate, we can not prove that > (1+r*(1-t))^N is less than tax deferred account. > > P262. Q1, in order to avoid forced heirship, > answer suggest we buy insurance or purchase fund, > i’m a bit concerned, because if your parents have > 10 mil cash and want to give you, in forced > heirship, you will pay high tax, but if your > parents buy insurance, > and you get paid and you will still need to pay > tax in US, if your parents buy stock, and > stock falls, you loss more than inheritance tax, > I’m not sure about offshore trust, can anyone > explain why it can reduce inheritance tax? > > P266, Q3 C, in denominator( the calculation of > bequest), there are two 0.30, I want to where is > the first 0.3 come from, is it the gratutious > transfer tax paid by grandson? the second 0.3 is > gratutious transfer tax, I think. can anyone > clarify? word?
waiting for reply
Q 14: TDA distributions are taxed at ordinary rates regardless of character of income while in the account. Q15: I don’t know about your formula (I figure out CG probs by a simple TVM calc, then back out basis, calc tax and remove tax from FV). But answer is correct. Q17: For this q I just used fake numbers and rates. Answer looks good to me. Q18: Heavily taxed income (i.e. taxable bonds) belongs in tax-deferred account. That is all you really need to know on this one. Haven’t got to your other questions yet.