The Portable MBA in Finance and Accounting, 3rd Edition

328 Planning and Forecasting an arrangement would be disastrous to Brad, since the IRS would currently as- sess income tax to Br ...

Taxes and Business Decisions 329 right to offset loan repayments against future salary. The term of the loan might even be accel ...

330 Planning and Forecasting secondary residence. If Brad grants Plant Supply a mortgage on his home to se- cure the repayment o ...

Taxes and Business Decisions 331 stock option is a handy device when the employee objects to paying for his piece of the action ...

332 Planning and Forecasting to pay a bonus based upon a certain formula. Since these devices are not rec- ognized as capital as ...

Taxes and Business Decisions 333 exercise, and then pays tax on the growth at a time when she has realized cash with which to pa ...

334 Planning and Forecasting be transferable; no more than $100,000 of underlying stock may be initially ex- ercisable in any on ...

Taxes and Business Decisions 335 the tax is payable. Of course, Congress is not being entirely altruistic in this case; the amou ...

336 Planning and Forecasting effective executive compensation package. In fact, the only real disappoint- ment for Morris was th ...

Taxes and Business Decisions 337 his family. No expenses are deductible for such a facility except taxes and mort- gage interest ...

338 Planning and Forecasting to the difference between the sale price and Plant Supply’s basis in the build- ing. If Morris purc ...

Taxes and Business Decisions 339 the two parcels of real estate? It would seem that a taxable sale of the one fol- lowed by a pu ...

340 Planning and Forecasting were not a subchapter S corporation at the time) and would be fully taxable to him. But Morris had ...

Taxes and Business Decisions 341 95% of the control and can qualify for a stock redemption only by selling all his shares to the ...

342 Planning and Forecasting tax to the government. Before settling for this result, Morris might well wish to explore ways to i ...

Taxes and Business Decisions 343 must offer to buy back the distributed shares at fair market value. As a practi- cal matter, mo ...

344 Planning and Forecasting Redemptions to Pay Death Taxes and Administrative Expenses Since much of the money to fund this est ...

Taxes and Business Decisions 345 of his taxable estate through gifts to his intended beneficiaries both faster and at less tax c ...

346 Planning and Forecasting to purchase whatever stock he may still hold at his death. Such an arrangement can be helpful with ...

Taxes and Business Decisions 347 arrangement by succeeding to the ownership of the corporation. Or, their com- pensation could b ...