TITLE

HOW TO WRITE OFF INVESTMENT COSTS

AUTHOR(S)
Auster, Rolf
PUB. DATE
April 1993
SOURCE
Journal of Financial Planning;Apr93, Vol. 6 Issue 2, p87
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
The purchase price of a term interest or life estate in an asset held for investment can be amortized, straight line, for tax purposes. If two "unrelated" parties enter into a joint (split) purchase of the present and future interest in such securities, the present holder may deduct most of the cost of the securities, including nondividend-paying stocks and municipal bonds. During the term, the present holder receives all the income from the securities in a tax-sheltered fashion, while the remainderman expects to receive a substantial tax-deferred built-in capital gain. The amortization of a term interest in property is one of the few remaining tax shelters in existence. A homemade tax shelter can be created easily through the use of a trust.
ACCESSION #
5555089

 

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