Hi,
It seems that the tax deferred account does not take into account the tax basis in the 2022 curriculum considering that the tax applies to the whole accrued final value like a wealth tax when it considered the tax basis in past years curriculum (which seems more logical).
Any idea?
Thanks
Where do you see that?
In 2022 books, volume 4, page 293, the third equation from top says
FV = (1+R)^n*(1-t)
In 2020 books, volume 5, page 260, Equation # 7 is
FVIF = (1+r)^n*(1-Tn)
Both equations are same.
Where do you see the difference? What page # please?
I don’t have the 2020 curriculum. I just remember that they considered the tax basis. I am pretty sure but can be wrong. What is important it that the current curriculum considers that the tax is applied to the whole future value without consideration for the tax basis and this is how it works in real life.