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Level 1
September 11, 2020
Question

Tax Analysis

  • September 11, 2020
  • 1 reply
  • 8 views

A taxpayer in the top (37%) tax bracket gets a Lacerte "Tax Tip" to consider converting tax-exempt securities to taxable securities due to the taxpayer's "low marginal tax bracket".  Am I missing something here because this doesn't make sense to me.

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1 reply

George4Tacks
Level 15
September 12, 2020
My best guess is that qualified dividends may be sufficiently larger than the tax free interest earnings. Qualified Dividends are taxed at CG rates and that may generate more net income.
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