Taxes & Private Wealth Management

Question 1

How do you calculate the future value of a portfolio that is subject to CG’s at the end?

Answer 1

(1+r)^N - ((1+r^N)-1)*CGT

Question 2

How do you calculate the future value of a portfolio that is subject to CG’s at the end given that the ACB is not that given starting value?

Answer 2

(1+r)^N * (1-CGT) + (B)*CGT

Where B = ACB/MV

Question 3

How do you calculate the future value of a portfolio where there is a wealth tax?

Answer 3

((1+R)(1-WT))^N

Question 4

What is the formula for finding annual return after realized taxes?

Answer 4

R = Nominal Return (1 - wCGT - wIT - wDT)

This does not incorporate unrealized capital gains

Question 5

What is the formula for the effective capital gains tax rate?

Answer 5

T = CGT * (1 - wI - wD - wCG)/(1 - wIT - wDT - wCGT)

Question 6

How do you find the after tax accumulation when taxes exist both during the time period and there are deferred capital gains?

Answer 6

= (1+ after tax annual return)^N * (1-effective CG) +effective CGT - (1-B)*CGT