Wealth Tax

CFA Level III Portfolio Management
#1

CFAI Mock Exam PM - Question 16:

If Buylak’s expectations about the Landlochen investment property are realized, using Exhibit 1, the after-tax net cash proceeds that Kasey will receive on disposal of the property at the expiration of the lease is closest to:

A €3,145,500. B €3,345,500. C €3,370,500.

I approached this question using only capital gains tax - why is both the captial gain & wealth tax applied in this question?

Thanks

#2

Similar to a house with property tax and capital gains tax… You get hit with property tax each year you own the house, and then you get hit with cap gains when u dispose/sale the house.

#3

wealth tax each year, CG tax when realized… makes sense. thank you