Putting It All Together Applying Savant To Entity Choice

Suppose you and an associate start a business that produces business software. Under your guidance, programmers have developed the prototypes, which you have beta-tested in small businesses. You have each invested 10,000, which has been used primarily to pay the programmers. You have no formal legal agreements between you and your friend. You have a 150,000-per-year job in another company, and about 500,000 of net worth. Your friend is a graduate student earning 10,000 per year and has 5,000 in...

Tax Management In Action 71 continued

Tax Management in Action 7.2 shows the multitude of different types of state and local taxes that U.S. businesses are subject to. Sales and use taxes are excluded (as in Tax Management in Action 7.1) because the aggregate data do not allow a separation of taxes paid by businesses versus individuals.

Estate and Gift Taxes

Gift taxes are imposed when one person gives property to another with non-business motives like affection and appreciation. Estate taxes are imposed on a person's last gift the transfer of property to heirs at one's death. In this sense, these two complementary taxes are really one unified tax on gifts people give either while they are alive or when they die. (There is another related tax, too the generation skipping transfer tax. Because it is extraordinarily complex and rarely triggered, it...

How Are Taxes Important In Decision Making

Sometimes taxation, and thus tax planning, is one of the most important factors in decision making. Consider the following scenario. Your best friend, who lives in New York City, e-mails you with the news that she has just inherited a large amount of cash. She asks for your help in investing it in U.S. mutual funds, which primarily hold bonds. Look in a financial newspaper or Web site that shows the current earnings of various bond funds. Pick five at random, and calculate their average yield....

Introduction To Tax Management

This book shows managers the principles of tax management and how to apply them to every day situations to enhance shareholder value. The book also shows professional advisors how to become more effective consultants, and investors how to better analyze financial statements. Taxes are important to know, but hard to learn. The devil is in the details. But managers and investors do not need to know the details. They just need to be aware of the fundamental principles of taxation and how to apply...

And Tax Management77

Anticipation and Timing Issues 87 Putting It All Together Applying SAVANT to Entity Choice 95 External Financing Debt versus Equity 105 Operating the Firm 123 CHAPTER 5 New Products Development, Promotion, and Advertising 125 New Products and Product Improvement 125 SAVANT and Research and Development 141 Attracting and Motivating Employees and Managers Company and Employee Tax Planning 144 Nonexecutive Employee Compensation 146 Pension and Profit Sharing Plans 153 Current and Deferred...