Bruce Starks, CPA, CFP® – Page 32

Equitable Distributions

Course: Income Tax PlanningLesson 15: Property Transactions Student Question: Hi 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? Thank you Anibal Instructor Response: Great question Anibal! Only marital property is subject to equitable distribution in…

Understanding the Investment Loan Interest Deduction

Good to Know Can you deduct the interest you pay on loans used to make investments? Conventional wisdom would have you believe the rules are complex. Yet, we only need to address the following three questions to gain clarity. What kinds of interest paid on investment loans are deductible? How do dividend income and capital…

Plan Monitoring and Updating Responsibility

Course: Fundamentals of Financial PlanningLesson 9: CFP Board Regulatory Requirements Student Question: Hi In lesson 1, for step 7, I have that a certificant is responsible for monitoring and updating only if explicitly called for in the scope of the engagement. In Lesson 9, I’m reading that the certificant is responsible unless explicitly excluded. Which…

Retirement Plan Required Minimum Distributions

Course: Retirement PlanningLesson 5: Leveraging Nonqualified Plans for Small Business and Not-For-Profit Employees and Owners Student Question: Hi I’m trying to distinguish when the required minimum distribution amounts are at 72 years old, versus when they are 70 ½. IRA’s are now 72, correct? Is a 401k plan and a 403b 70 1/2? Thank you…

2021 Child and Dependent Care Credit

Good to Know The Child and Dependent Care Credit (a potentially refundable tax credit for 2021) is to incent employment. Employed taxpayers receive a tax credit if they have dependents who need child care. The credit is available to those taxpayers currently employed and those seeking employment. Restrictions, conditions, and coordination rules apply. Restrictions The…

Maximum Family Benefit

Course: Insurance PlanningLesson 10: Social Security Student Question: Does the maximum family benefit apply to a husband and wife that are both fully insured if the combined total between the two exceeds the maximum family limit? If I understand correctly, the maximum family limit only applies if there are beneficiaries within the family receiving benefits…

Cryptocurrency, Financial Planners/Advisors, and Client Expectations

CFP® Certificants in the News Cryptocurrency was considered a highly speculative, if not a suspiciously bizarre novelty, when Bitcoin was introduced anonymously in 2009. Fast forward to today – Cryptocurrency and other digital assets have skyrocketed in popularity. For example, Bitcoin holdings alone in 2021 are estimated at over one trillion dollars, and the federal…

Social Security Widower Benefits

Course: Insurance PlanningLesson 10: Social Security Student Question: When it comes to social security widower’s benefit’s, is the widow eligible to take his/her SS benefit early (age 62) and then switch over to the deceased spouse’s full benefit at 67? Or would the widow only be eligible for one of the two benefits? Thanks Cooper…

Social Security Retirement Benefits

Course: Insurance PlanningLesson 10: Social Security Student Question: This question (below) doesn’t quite make sense to me. Could you clarify why the correct answer is D? Robin Elizabeth qualifies for a retirement benefit of $250 and a spouse’s benefit of $400. At her full retirement age, she will receive which of the following? Both $250 and…

Personal Umbrella Liability Insurance Isn’t Only for the Rich

Good to Know Conventional wisdom would have us believe that personal umbrella liability policies are needed only when one’s net worth exceeds $1,000,000. The purpose of this blog is to challenge that potentially dangerous assumption. As background, we live in an amazing country, land of the free because of the brave. Yet the United States…