Organizational Tax Research and Planning - Estate Tax Paper

Organizational Tax and Planning - Estate Tax - Research Paper Example The total value of estate tax is referred to as Gross Estate, while the tax itself is estimated by taking the Fair Market Value of the total taxable estate. If the estate is associated with any Mortgage or fees payable for setting the estate, then the Gross Estate is adjusted to that amount. The Net Value of Estate, which is reduced by the value of exemptions stipulated in the Laws, is the net amount after allowing for all the possible deductions. Case advise In the current case, a wealthy couple owns a farm and a number of businesses that they would like to bestow to their three children. They would like to be advised how to minimize tax against this property, so their children can enjoy the maximum benefit. In order to effectively bequeath the property to their descendants when they die, the couple should exercise proper estate planning, and particularly focus on matters of he estate tax. Looking at the provisions of Estate Tax, it appears that Estate Tax is a must pay tax that is imposed on the transfer of property following the death of the transferor. While it is not possible to avoid this tax, there are a number of ways that the couple can use to evade or legally minimize the impact of this tax. The couple should ensure that they choose the most efficient method of transferring property to their descendants by minimizing estate tax. This includes use of techniques that guarantees minimization of estate tax, which will be discussed later in this paper. Question 2 The current IRS’s provision is that Estate Tax is taxable up to a maximum rate of 35% and exempted up to $120,000. When computing the amount of taxable estate amount, some specific deductions are also available, which are valid up to the end of 2013 only. Beyond this exemption, the value usually reduces to $1,000,000 while the Estate Tax increases to 55%. Some of the significant changes, which have been suggested by the US President, include increasing the tax rate to 45% and introducing an exemption of up to $3,500,000. Certainly, this proposal will not go down very well with the taxpayers and if it is implemented in its current status, it is likely to cause more harm than the benefit it is intended for. The suggestion will impose a heavy burden on the US public, and hence it is important for the congress to device ways of making estate tax provisions friendlier to the taxpayers. In this regards, different congress groups have suggested a number of proposals, which include the following. i. The Extenders group from the farming estate has suggested that the status quo should be upheld in the future, which means the tax collector should continue exempting up to $5,120,000 and imposing tax at the rate of 35%. ii. The conformers support the president’s proposal, which will reduce the amount of exemption to $3,500,000 and increase tax rate to 45%. Therefore, their wish is that this proposal is incorporated in the Estate Tax laws. iii. The Reversers group demands th at the 2001/2002 tax provisions should be reinstated. This provision puts exempted amount at $1,000,000 and the Estate Tax at 55%. Ideally there are five options open to the current estate tax. These include: (i) amendment of the estate tax, (ii) passing of a compromise bill, (iii) extension of TRUIRJCA, (iv) maintaining of the status quo, and (v) implementing of the new suggestion in its current st

Apple Computer, Inc. iPhone and Apple TV Assignment

Apple Computer, Inc. iPhone and Apple TV - Assignment Example In an effort to improve their software products, Apple partnered with Motorola and IBM to produce a power PC chip to run the PowerMacs. Despite this effort, losses in the company increased during 1996 and 1997. While Apple was trying to market its products, a number of competitors emerged in the technological field. This was attributed to the rapid changing entertainment industry. An example of such a company is Got Voice Company, which allows users to record and send voicemail messages in MP3 format to their email accounts, a free service, challenges Apple’s Visual Voicemail on the iPhone. Apple’s effort to expand its business to include more media and software is likely to face challenges. This is an effort to maintain its tech savvy image in the production of its products. The unique design in its products has established a large customer base, which will place more pressure on Apple’s design team. Dimensions along Which Company Success Can be Measured To be a ble to measure Apple’s success, a number of measures can be used. From a financial perspective, Apple’s revenues can be used to indicate its success. These revenues vary depending on the product and region. For instance, Apple’s net income in 2007 from digital music amounted to $3.5 billion. In addition, other financial criteria that can be used include cash flow records, debts and net income. Customers can also be used as a measure of Apple’s success. This covers the market share, growth and customer satisfaction. By 2007, Apple controlled more than 70 percent of the digital music market. In terms of growth, Apple is aiming to capture at least 1 percent of the global cell phone market. Customer satisfaction is evident from Apple’s huge following of its tech savvy products. Another criterion to be used as a measure of Apple’s success includes its internal business processes that cover product quality, marketing effectiveness, inventory contr ol, cost management and margins. Consequently, Apple’s success can be measured through the introduction of new products such as iPad, Apple television, iPod, iPhone and iTunes. Furthermore, these new products indicate Apple’s advancement in technology and their efforts in research and development of new and innovative products. Moreover, Apple’s strategic agreements with various companies indicate that it has grown. These include agreements with Volkswagen, Nike, Burton Snowboards and Starbucks. These agreements include Apple’s iPhone product. This affiliation with different companies has increased customers confidence in Apple’s products. Critical External and Internal Environment Factors Strengths Internal factors that have an impact on Apple’s future depend on the assets and competence within the company. Some of its strengths include its global presence, brand image, strong media content and a synergistic portfolio. The iPod has penetrat ed about 70 percent of the digital music market and continues to grow due to its high sales in the portable digital music industry. Recent studies reveal that Apple has opened more than 200 retail stores worldwide. These retail stores have contributed an estimated $200 million. Apple’s ability to penetrate the global market has made it provide high tech products. These products have gained acceptance in different cultures across the world. Apple’