Vehicles to minimize income tax, capital gains and estate tax

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ECON224-1101A-02 Macroeconomics

Assignment Name: Unit 2 Discussion Board

Deliverable Length: 150-word minimum

Details: Your managing director asks if you can participate in a seminar that the firm is doing on tax efficient financial planning. He would like you to send him, in memo form, the various types of vehicles that can be used by clients to reduce the various kinds if taxation. Prepare a memo to the managing director that explains the different vehicles available that can be used for each of the following:

* Minimize income tax

* Minimize capital gains tax

* Minimize estate tax 

Computing taxable income for current year

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The following differnces between financial and taxable income were reported by Dider Corporation for the current year.

(a) Excess of tax depreciation over book depreciation              $60,000
(b) Interest revenue on municicpal bonds                             9,000
(c) Excess of estimated warranty expense over actual expenditures   54,000
(d) Unearned rent received                                          12,000
(e) Amortization of goodwill                                        30,000
(f) Excess of income reported under percentage-of-completion
    accounting for financial reporting over completed-contract
    accounting used for tax reporting                               45,000