Tanya An out of the money (OTM) option is an option that has no intrinsic value. This means that the option is not currently in-the-money and, if exercised, would result in a net cash outflow to the option holder. OTM options are typically cheaper than their in-the-money or at-the-money counterparts because they have a lower probability … Read more
A “tax shield” is an expense that can be used to reduce taxable income. The most common type of tax shield is a deduction, which lowers the amount of income that is subject to tax. Other types of tax shields include tax-exempt income, tax-deferred income, and tax credits. Are dividends tax-deductible? There is no definitive … Read more
The domicile definition is the legal definition of an individual’s permanent home. Domicile is important for income tax purposes because it determines which tax jurisdiction an individual is subject to. An individual’s domicile is generally their country of citizenship, but it can also be the country where they have their permanent residence. Is domicile the … Read more
