taxes studying, whole

cfalevel2011

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

Iginla2011

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)]

lcw77

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

mik82

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

Colum

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

cityboy

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

aidebaobao

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

canadiananalyst

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.

mar350

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.

liangfeng

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.