IRAs Vs. Unsheltered Investments: A Quantitative Analysis

Article Abstract:

The accountant is often faced with questions concerning advisability of investment in Individual Retirement Accounts (IRAS) or an employer's tax-sheltered annuity fund or an unsheltered investment. The accountant needs a quantitative method of analyzing. A formula based on sheltered rate of return and the individual's marginal tax rate is used to compute the parity rate. The limitation with this formula is that it is static. But if sheltered rates of return or marginal tax rates increases, parity rates increase. An unsheltered investment should not be made unless there is an adequately higher rate of return. There are qualitative considerations as well such as the individual's ability to handle his investments, the level of risk and the level of liquidity of the investment.

Investments, Comparative analysis, Tax shelters

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Taxation of Investments in Manufactured Housing

Article Abstract:

A review offers the key tax benefits of investment in manufactured housing property. The chief incentive for owning mobile homes is their short depreciable life. The whole cost can be the basis for tax credit if rental involves transient versus nontransient tenants and the proper attachment is used. A precise study and analysis of the Economic Recovery Tax Act (ERTA) of 1981 and its Accelerated Cost Recovery System (ACRS) of depreciation is required. Owners of five year ACRS property customarily obtain investment tax credit without difficulty. Investers should compare the current value of tax credits on trailers to those given on other real estate investments.

Analysis, Property taxes, Property tax, Investment tax credit

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Taxation of "split-dollar" life insurance arrangements

Article Abstract:

The author outlines the content of notices issued by the Internal Revenue Service in January 2001 regarding split-dollar life insurance arrangements. He analyzes prior IRS split-dollar rulings and interim guidances, and discusses the value of life insurance protection.

United States, Taxation, Split-dollar life insurance, Split dollar life insurance

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