Tax Efficiency

A financial process is said to be tax efficient if it is taxed at a lower rate than an alternative financial process that achieves the same end.

Passing one's assets onto one's heirs using a Grantor Retained Annuity Trust, for example, is potentially more tax efficient than simply letting the heirs inherit the assets.

Other articles related to "tax efficiency, tax":

Donor Advised Fund - Tax Efficiency Example
... We assume a 35% income tax rate and 15% long term capital gains tax rate ... Option 1 Contribute cash from sale of securities Immediate cost of donation $100,000 Capital gains tax incurred $13,500 (15% times ($100k minus $10k)) Income tax saved ($35,000) (35% times $100k) Net cost to donor $78 ... The tax efficiency to the donor is the same either way ...
Exchange-traded Note - Prospect and Conclusion
... For the customers, the advantages such as tax-efficiency and good liquidity of ETNs will attract more investors to this innovative structured product ... importantly, the issuing banks advertise tax-efficiency as ETNs USP ... products out in the market, if there is no tax-efficiency for ETNs ...
Exchange-traded Note - Pros and Cons of ETNs - Advantages - Tax Efficiency
... An ETN offers a tax-efficient way to invest ... It is treated as a prepaid contract (such as a forward contract) for tax purposes ... have to pay any resulting capital gains tax ...

Famous quotes containing the words efficiency and/or tax:

    Nothing comes to pass in nature, which can be set down to a flaw therein; for nature is always the same and everywhere one and the same in her efficiency and power of action; that is, nature’s laws and ordinances whereby all things come to pass and change from one form to another, are everywhere and always; so that there should be one and the same method of understanding the nature of all things whatsoever, namely, through nature’s universal laws and rules.
    Baruch (Benedict)

    If you tax too high, the revenue will yield nothing.
    Ralph Waldo Emerson (1803–1882)