Bruce Starks, CPA, CFP® – Page 40

CFP Board Announces Joint Scholarship to Benefit African American/Black Candidates for CFP® Certification

CFP® Board Updates “The CFP Board Center for Financial Planning (the Center) announced … [on June 29, 2020] a new scholarship in partnership with Facet Wealth, Inc., to advance diversity and inclusion in the financial planning profession. The Facet Wealth Scholarship for Increased Diversity in Financial Planning will support African American/Black candidates seeking to become…

Deducting Gifts to Customers

Course: Income Tax PlanningLesson 10: Recognition of Expenses, Losses, and Deductions Student Question: Hi- Can you clarify for me the deductibility of gifts when we’re talking about employees of a business versus self-employed individuals? It seems the rules have changed on these. Thanks. Kyle Instructor Response: Hello Kyle, Thank you for the question. Things have certainly changed. An employee (W2 employee or statutory employee) can no…

COVID-19 and Living Trusts

Good to Know Incapacity planning may be on the minds of many Americans as COVID-19 continues to threaten our health. The Durable Power of Attorney was discussed as an incapacity planning tool in our most recent blog. While this tool is generally effective, it is not unusual for banks and other financial institutions to question…

Highlights of Recent CFP Board Discipline

CFP® Certificants in the News The annual rate of public discipline against CFP® Certificants is estimated at less than two tenths of one percent. Yet, even the best of professions needs ethical enforcement. For example, CFP Board published a notice of public discipline against 13 Certificants on June 3, 2020. We will not repeat the…

Recognition on Installment Notes

Course: Estate PlanningLesson 12: Valuation and Freeze Techniques to Reduce Estate Tax Liability Student Question: I’m not sure how gains are spread out over the course of the note if these are typically structured “as interest only with a balloon payment at the end”. Here’s the language from the lesson: Instead of an outright sale, an…

COVID 19 and the Need for Incapacity Planning

Good to Know The same incapacity management techniques that address mental illness issues can also be effective when your client is temporarily incapacitated due to physical illnesses such as COVID-19. Here is a quick review of these documents and how they work. Power of Attorney (POA) This legal document empowers another person to act on…

Begin versus End Mode Calculations

Course: Fundamentals of Financial PlanningLesson 5: Using the Calculator Student Question: If it would be at all possible, can you provide me with a practical working explanation of when to use begin mode key and the end mode key in solving these calculations? Thank you for your attention Eric Instructor Response: Hi Eric, Great question. Ultimately, we look to the fact pattern of the question,…

Conversion of Personal Use Property

Course: Income Tax PlanningLesson 15: Property Transactions Student Question: Running with the last example on this page where the sale is between the basis for a gain or a loss, is there ever a situation where factoring in depreciation would result in either a gain or loss? Example Kevin’s home has been declining in value, so he has decided to move and rent…

Good to Know: Social Security: Another COVID-19 Casualty?

Good to Know What do you think of first when someone says, “victim of COVID-19?” Most of us think of medically vulnerable fellow citizens or business failures. But what about Social Security’s health? Before answering that question, let’s recognize a few fundamental forces behind Social Security’s financial challenges: Social Security become law in 1935 and,…

FAQs – Remaining CFP Board Exams in 2020

CFP Board Exam FAQs The questions surrounding CFP Board’s response to COVID-19 number in the dozens if not hundreds. In this blog, we’ll identify key FAQs on the subject. Is there an additional fee to register for the September Exam? Candidates who were registered to take the exam in July will be able to reschedule…