• Calvin, a client of yours since you opened your practice, has over the past few years become very intrigued with investing in the stock market. He has interest bearing securities and dividend paying stocks. He also owns U.S. Securities. He is considering selling $400,000 in stocks.He doesn't know if he should sell additional stock for a loss to help offset the stock sale of $400,000. Calvin called you to ask what tax consequences the interest and dividends will have along with the stock sale. What tax advice would you offer to Calvin in planning for this situation?

Describe how interest income and dividend income are taxed. What are the similarities and differences in their tax treatment?

Compare and contrast the tax treatment of interest from a Treasury bond and qualified dividends from corporate stock.

In what ways are U.S. savings bonds treated more favorably for tax purposes than corporate bonds?

Why does the tax law allow a taxpayer to defer gains accrued on a capital asset until the taxpayer actually sells the asset?