Tax arbitrage is a strategy that allows clients to convert one type of income into a more-favorably-taxed type of income.
As an example, interest income is taxed at a maximum rate of 39.6% while long-term capital gains are taxed at a more favorable rate of 20%. Arbitrage seeks to take advantage of that difference.
Register or login for access to this item and much more
All On Wall Street content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access