Bruce Starks, CPA, CFP® – Page 34

CFP Board Relaunches “LetsMakeAPlan”

CFP® Certificants in the News CFP Board press release, December 16, 2020 Relying on extensive consumer research and user testing, Certified Financial Planner Board of Standards, Inc. (CFP Board) recently launched its redesigned and updated consumer-facing website, LetsMakeAPlan.org (LMAP). The refreshed website includes updated content and a modernized interface with a mobile-friendly design to improve user experience,…

Crummey Powers

Course: Insurance PlanningLesson 16: The Irrevocable Life Insurance Trust Student Question: Must Crummey Powers always be in effect to apply the annual gift tax exclusion in order to transfer to an irrevocable trust? Or is it the case that as long as it was done once, will all transfers be eligible for the annual gift tax exclusion? Thanks,…

IRS Riddle: How Do You Save $435 or More in Tax Penalty With 55 Cents?

Good to Know Alert-As of the date this blog was written (March 16, 2021) pressure was building to extend 2020 tax return due dates in recognition of COVID challenges. However, taxpayers should assume the due date for personal and business income tax returns remains unchanged unless an official IRS pronouncement indicates otherwise. The IRS recognizes…

Chapter 13 Bankruptcy Means Test

Course: Estate PlanningLesson 13: Case Study Online Student Question: I am a little confused how one set amount – $100 – is the threshold for means testing a bankruptcy petitioner when the amount of debt a borrower may owe can vary by large amounts. It would seem the amount left over (income minus allowable expenses)…

Custodial Accounts and Gifting

Course: Estate PlanningLesson 13: Case Study Online Student Question: If a check given by Mary to Peter was deposited into a custodial account where Mary was the custodian, doesn’t that mean that Mary didn’t give up ALL control, so it’s not a completed gift? Thanks, Megan Instructor Response: Hi Megan, That’s a great way to…

IRS Discount “Coupons” – Flexible Spending Arrangements

Good to Know If your doctor emailed a 35% discount coupon to your inbox, would you take the free money? Your clients that are under-utilizing Flexible Spending Arrangements to pay medical and child-care costs may be throwing away free money. How? Contributions to the Flexible Spending Arrangements discussed herein are not subject to income, Social…

No Additional Cost Services Exclusion

Course: Income Tax PlanningLesson 6: Employer-Sponsored Total Income Exclusions Student Question: For “No Additional Cost Services” provided by an employer, which are excluded from employee income, there is the requirement that no significant costs are incurred. How is “significant” cost determined? Significant sounds subjective. Is there a general rule for determining what is considered significant?…

The Jackie Robinson of Financial Planning

CFP® Certificants in the News In a recent CFP Board press release, Board Chair Kevin Keller announced that, “As we celebrate Black History Month, I want to recognize LeCount Davis, CFP® for his contributions to the financial planning profession. LeCount was the first African American to earn the CFP® certification, and I am not alone in considering…

ALERT – IRS Audit Red Flags

Good to Know The “red flag” expression comes to us courtesy of its first use in 1602 to signal the preparation for war. An IRS audit, while not a declaration of war against a taxpayer, can certainly put an unprepared client in the cross hairs of an unpleasant tax conflict. Before unfurling the red flags,…

Accounting for Inflation

Course: Fundamentals of Financial PlanningLesson 5: Using the Calculator Student Question: Good afternoon. Can you explain why we didn’t take inflation into consideration for the second calculation in the first problem? Dawn wants to have $25,000 in today’s dollars for a round-the-world cruise when she retires 11 years from now. She assumes she can earn…