Bruce Starks, CPA, CFP® – Page 19

Tax Tips for 2023

Good to Know If you saw twenty-two $100 bills lying on the sidewalk and could not determine who the money belonged to, would you scoop it up? If your answer to that question is yes, we have good news. That much or more in federal income tax savings for 2023 could be possible. Clients may…

Understanding the Relationship Between Coupon Rates and Duration

Course: Investment PlanningLesson 9: Fixed Income Securities Student Question: There is a question regarding duration that I continue to struggle with. Which of the following are true: Can you explain #1 and #3? Instructor Response: Thank you for your question. This can become a bit convoluted. Let’s unpack the word “duration” first. Duration is nothing more…

Equitable Distributions

Course: Income Tax PlanningLesson 15: Property Transactions Student Question: This page explains how the basis for inherited property is affected for common-law states and community property states. How is it affected for equitable distribution states like Florida? Instructor Response: Only marital property is subject to equitable distribution in most common law property states. The purpose…

The Myth of Substantial Income Taxes on Social Security Benefits

Good to Know Social Security Retirement Benefits (SSRBs) can be as high as $55,000 or more annually for high-income clients who choose to delay benefits claiming until age 70. But here’s the big question—how much of that SSRB will the IRS siphon away? We have good news! Many clients will pay income tax on a…

Book Value versus Market Cap

Course: Investment PlanningLesson 5: Fundamental Equity Analysis Student Question: Hi, How is a company’s book value different from the market cap? Instructor Response: Book value is an accounting concept generally based upon the acquisition costs of and the legally binding amounts of liabilities. It is the amount of cash that would be left over if…

Does Recommending Cryptocurrency Violate CFP Board Rules?

CFP® Certificants in the News You’re a CFP® Professional with an investment advisory practice and you just advised a client to purchase cryptocurrency assets (CRAs). Did you just violate the ethical standards? Should you expect a communication from the Disciplinary and Ethics Commission? Here’s the seemingly equivocal answer—maybe yes and maybe no. This article will…

How to Avoid a Killer IRA Mistake

Good to Know Choosing the wrong IRA type is an all-to-common client mistake that can be difficult and expensive to correct. Financial professionals can help clients avoid that mistake by fully informing their clients of the key factors to consider. There tend to be two schools of thought to avoid—in the author’s opinion—when choosing between…

Life Insurance Taxation

Course: Insurance PlanningLesson 12: Types of Life Insurance Student Question: Am I correct in thinking that, as a rule, if a life insurance policy is paid for with after-tax dollars (non-deductible) that death benefit proceeds are always received tax free? Instructor Response: You are directionally correct but let’s dig a little deeper. Generally, death benefits…

Savvy Year-End Tax Moves for Individual Taxpayers

Good to Know Time is running out for smart year-end tax moves. Yet, client concerns over economic and political turmoil can interfere with year-end tax planning. For example, how will the market perform given record inflation, the FED’s interest rate hikes, and the threat of recession? What will happen to tax rates and deductions in…

Speak Now or Forever Hold Your Peace

CFP® Certificants in the News “Certified Financial Planner Board of Standards, Inc. (CFP Board) announced…that it is seeking public comment on proposed changes to CFP Board’s Procedural Rules. The proposed changes are intended to modernize CFP Board’s enforcement processes and further CFP Board’s work to uphold its Code of Ethics and Standards of Conduct (Code and Standards) for the…