how are you studying the whole taxes section? i have such a hard time with this :-(((作者: lcai 时间: 2011-7-11 19:43
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
.作者: liangfeng 时间: 2011-7-11 19:43
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.作者: ohai 时间: 2011-7-11 19:43
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作者: pennyless 时间: 2011-7-11 19:43
^ Mcap taxes was moved to LIII from LII in 2010.作者: canadiananalyst 时间: 2011-7-11 19:43
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.作者: mar350 时间: 2011-7-11 19:43
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.作者: cityboy 时间: 2011-7-11 19:43
Everyone that is punting this one please make sure to show up for the exam. The rest of us would enjoy the help.作者: aidebaobao 时间: 2011-7-11 19:43
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.
NO EXCUSES作者: mik82 时间: 2011-7-11 19:43
I could've used those 2-3 hours and nailed GIPS or Equity, 2 sections I'm still not comfortable with. No point in @#$%& 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.
NO EXCUSES作者: Colum 时间: 2011-7-11 19:43
Because taxes have a direct impact on the returns of an investment and influence asset allocation, my opinion is that taxes are extremely important.作者: lcw77 时间: 2011-7-11 19:43
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作者: Iginla2011 时间: 2011-7-11 19:43
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)]
