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Tax Analysis

Level 1

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 Comment 1
Level 15
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.

Here's wishing you many Happy Returns
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