Posts Tagged ‘tax rate’

Calculation question, what is better to pay off overall with consideration to tax deductions…?

Sunday, November 15th, 2009

I am trying to decide what is best to start using my extra money to pay off…a student loan at 5.4%, an auto loan at 4.99% or a heloc at 7.75% I know student loans and heloc interest is tax deductible, but assuming these deductions don’t affect a change in bracket (tax rate) what is the calculated difference in interest saved (assuming 15% bracket) on whether to pay which of these three….(I guess I’ve always been told pay non-deductible first, but with these numbers I just don’t see how that adds up…and most importantly how do I actually calculate the real interest I’m paying on tax deductible interest so I can compare it to nondeductible rates…) thanks in advance for any help!

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How do i calculate the cost of equity?

Thursday, September 17th, 2009

This is a finance hw question and this is the info I have from the question:
unlevered beta=1.10
No current debt but changing it’s captial structure to be 40%debt and 60%equity
tax rate=40%
Rfr=5%
mkt risk premium= 4%

How is equity more expensive form of financing than debt?

Thursday, August 6th, 2009

Please help me understand the following lines that i read in a book:

" The right mix between equity and debt goes a long way in establishing the long term health of a business.The dividend on equity has to be paid out of post tax earnings of a company, whereas interest on loans is a tax deductible expenditure.Consequently, for a profit-making and tax-paying company a dividend of 16% means a pre-tax cost of 24%(assuming a tax rate of 33%).Thus under certain given conditions, equity is a more expensive form of financing than debt……….."

Can somebody please simplify the meaning of the above lines especially
"Consequently, for a profit-making and tax-paying company a dividend of 16% means a pre-tax cost of 24%(assuming a tax rate of 33%).."

I would really appreciate the help…
Thanks

Will a home equity loan increase my property tax?

Thursday, April 30th, 2009

I am considering applying for a home equity loan. In order to get the money I need, my house would need to be assessed at a higher value than it currently is because I have very little equity in the house. However, I have made many major capital improvements, so this won't be a problem. If the bank's assessor assesses the property at a higher value, will my house be subject to higher property taxes? I live in NY, so the property taxes are the highest in the country, and this would be a major problem.

I have considered and researched other alternatives to a home equity loan, so I just need to find the answer to this question. I can't seem to find it on the Internet, and I have asked two mortgage people…and they don't even know.
OK, if my property tax is based on the value of my property…let me pose this question/example:

Say, I bought my house for 0,000 and put no money down. My house is currently assessed by the town/county at 0,000. That is what I pay property tax on. Between rising property value and tens of thousands of dollars in capital improvements, say my house can be assessed for 0,000. That would be ,000 more than the remaining principal. Excluding any other data or costs, a 100% home equity loan would provide me with ,000. Now, if someone came out and said my house was valued at 0,000…this wouldn't increase my taxes? So…the town/county would not find out about this loan or the re-assessment? My tax rate here is 3.5%. I have to be 100% sure.

Related ‘tax rate’ sites :


Tax Brackets (Federal Income Tax Rates) 2000 through 2009 and ...
Your tax bracket is the rate you pay on the "last dollar" you earn; but as a percentage of your income, your tax rate is generally less than that. ...
www.moneychimp.com/features/tax_brackets.htm
 
Tax rate - Wikipedia, the free encyclopedia
For a type of taxation system in the United Kingdom and elsewhere, see Rates (tax) ... In a tax system and in economics, the tax rate describes the burden ...
en.wikipedia.org/wiki/Tax_rate
 
2009 Tax Rate Schedules: Marginal Ordinary Income Tax Rates ...
The tax rates apply only to the income in each tax bracket range. ... Note: These tax rate schedules are provided for tax planning purposes. To compute your ...
taxes.about.com/od/2009taxes/qt/2009_tax_rates.htm
 
Individual income tax rates
Shows the percentage of tax payable for each income bracket, for individual Australian taxpayers, for the financial years 2008-09 and 2009-10.
ato.gov.au/individuals/content.asp?doc=/content/12333.htm
 
Income tax in the United States - Wikipedia, the free ...
Effective income tax rate in 2008 as function of taxable income. ... This is because the individual's marginal rate (the percentage tax on the last dollar earned, here 15%) has ...
en.wikipedia.org/wiki/Income_tax_in_the_United_States
 
Utah State Tax Commission – Sales & Use Tax Rates
If you're looking for Sales Tax Individual Rate Cards, click here. ... The Other Tax Rates & Fees chart includes: Transient Room Taxes, Tourism Short-term Leasing Taxes, Tourism ...
tax.utah.gov/sales/rates.html
 
California City and County Sales and Use Tax Rates - Board of ...
The mission of the State Board of Equalization is to serve the public through fair, effective, and efficient tax administration
www.boe.ca.gov/sutax/pam71.htm
 
MD Current Tax Rates
Current fiscal year local tax rates for Maryland property owners.
www.dat.state.md.us/sdatweb/taxrate.html
 
Tax Rates - NJ Taxation
For tax year 2010 the gross income tax rates will revert to the rates for tax year 2008. ... When using the tax table, be sure to use the correct column. ...
www.state.nj.us/treasury/taxation/taxtables.shtml
 
Income Tax Rate in India, Income Tax Rates 2010,Taxable ...
India Tax Guide - Presenting comprehensive information on indian tax laws which covers tax administration & procedure, guide to corporate tax, capital ...
finance.indiamart.com/taxation/income_tax/rates.html
 

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