Session 17 - Tax Considerations

Question 1

Taxes are levied at the same rate regardless of income and thus represent a smaller percentage of income for wealthy taxpayers then for taxpayers with lower income.

Answer 1

Regressive taxes. This includes sales, excise, payroll, property, and gasoline taxes.

Question 2

These types of taxes are costly her to people with high incomes than two people with low incomes

Answer 2

Progressive taxes. This includes estate, gift, and income taxes

Question 3

For purposes of an IRA contribution, alimony is considered eligible income while __________ support is not.

Answer 3

Child-support

Question 4

_________ income and losses come from the rental properties, limited partnerships, and enterprises in which an individual does not actively participate.

Answer 4

Passive income and losses

Question 5

__________ income include some dividends, interest, and net capital gains derived from the sale of securities

Answer 5

Portfolio income. Portfolio income is taxed in the year in which it is earned.

Question 6

Interest on interest plans just like reinvest the dividends are _________ in the year received.

Answer 6

Taxable

Question 7

Regardless of fluctuations in the market price, as long as a dividend is paid, and investor participating in a DRIP will ___________have more shares in the account at the end of the year been at the beginning.

Answer 7

Always

Question 8

When you are the beneficiary of the life insurance policy, death benefit proceeds are _______taxable as income.

Answer 8

Not

Question 9

In a progressive tax system, the term used to describe the highest rate paid on income is the what?

Answer 9

Individuals marginal tax rate