Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : INTEL TRADER -- Ignore unavailable to you. Want to Upgrade?

To: Berney who wrote (4200)	10/5/1998 12:45:00 PM
From: tommy gunn	Respond to of 11051

Hey Dudes, Thats why I live on the water! 7400? A bottom will come out of this! Blue lite special coming up. tg

To: Berney who wrote (4200)	10/5/1998 2:05:00 PM
From: MonsieurGonzo	Read Replies (2) \| Respond to of 11051

Berney; RE:" Figuring Taxable Equivalent Yields " The biz nooz in the Bay Area is in the San Jose Mercury News, as the local San Francisco Chronicle will have big spreads about massive burst of radiation from some far-off anomaly disrupting satellites and making weird karma ju-ju for everybody - and BTW, it's sunny tomorrow for the Castro Street Fair, citizens. But there was this interesting table in the biz-nooz section today. Figuring Taxable Equivalent Yields To find out whether a tax-free investment makes sense for you, compare its taxable equivalent yield to the yield available on taxable investments with similar maturity, using this calculation: Tax Free Yield Taxable Equivalent Yield = ------------------------------ ( 1 - Your Tax Bracket ) * Suppose a taxpayer in the 31 percent federal tax bracket can get 5 percent on a 30-year Treasury Bond or 4.8 percent on a 30-year California Municipal Bond. The taxable equivalent yield on the municipal bond is 6.95 percent. 4.8% Tax Free Yield Taxable Equivalent 6.95% = ------------------------------ ( 1 - 0.31 Tax Bracket ) From a tax standpoint alone, this investor is better off in municipals, because 6.95% is higher than 5 percent. * if you are comparing California municipals, which are free of federal and state taxes, to a fully taxable investment, use your combined federal-state tax rate from the table below. If you are comparing a California municipal to a Treasury Bond, use only your federal tax rate in the calculation because Treasury securities are free from state, but not federal taxes. 1998 Income Tax Brackets Taxable Taxable (joint) (single) COMBINED TAX Income Income FED Tax STATE Tax RATE ---------- ------------ --------- ----------- --------------- $42,351 - $52,090 28.0 % 6.0 % 32.3 % $52,091 - $25,351 - $65,832 $32,916 28.0 % 8.0 % 33.8 % $65,833 - $32,917 - 102,300 $61,400 28.0 % 9.3 % 34.7 % 102,301 - $61,401 - 151,950 128,100 31.0 % 9.3 % 37.4 % 151,951 - 128,101 - 278,450 278,450 36.0 % 9.3 % 42.0 % 278,450 + 278,450 + 39.6 % 9.3 % 45.2 % state taxes are deductible on federal tax return. ...so, that's the report from your man in good ju-ju land, California. -Steve (^_^)