Determining Optimal Tax Deferral Strategies in the Absence of Capital Gains Tax Rates and Tax Deferral Credits

Journal of Applied Financial Research, Vol. III, pp. 2-10, 2009

Posted: 30 Aug 2009

See all articles by Terrance Jalbert

Terrance Jalbert

University of Hawaii - Department of Business Administration

Mercedes Jalbert

The Institute for Business and Finance Research

Steven P. Landry

Naval Postgraduate School

Date Written: 2009

Abstract

Several articles in the literature have examined optimal tax-deferral strategies. This paper extends this literature line by using a different combination of tax assumptions. Specifically, in this paper we assume all future income is taxed at the ordinary income tax rate. This tax assumption is relevant for individuals that invest primarily in investments that do not produce capital gains. Moreover, the tax assumptions here allow for a simpler analysis that is easier to understand than previous work.

Keywords: tax deferral, IRA

JEL Classification: H2

Suggested Citation

Jalbert, Terrance and Jalbert, Mercedes and Landry, Steven P., Determining Optimal Tax Deferral Strategies in the Absence of Capital Gains Tax Rates and Tax Deferral Credits (2009). Journal of Applied Financial Research, Vol. III, pp. 2-10, 2009, Available at SSRN: https://ssrn.com/abstract=1464195

Terrance Jalbert (Contact Author)

University of Hawaii - Department of Business Administration ( email )

808-974-7456 (Phone)

Mercedes Jalbert

The Institute for Business and Finance Research ( email )

P.O. Box 5569
Hilo, HI 96720
United States

HOME PAGE: http://www.theIBFR.com

Steven P. Landry

Naval Postgraduate School ( email )

Graduate School of Business & Public Policy
555Dyer Road
Monterey, CA 93943
United States
831-656-7762 (Phone)

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