Posts by Bruce Starks, CPA, CFP®
Calculating Taxpayer Late Payment and Filing Penalties
Course: Income Tax Planning Lesson 1: Introduction to Taxation Student Question: Hi How is the answer to question #5 (below) $810? Jerry’s taxes were due April 15th. He filed his return in October of the same year and paid his $3,000 two months later. Would Jerry be subject to a penalty? How much? No. Jerry…
Read MoreMoney Purchase vs Cash Balance vs Target Benefit Plans
Course: Retirement Planning Lesson 4: Understanding Types of Qualified Plans Student Question: Hi Bruce- I have studied the material in depth, but am still struggling with the distinction between Money Purchase Plans, Cash Balance Plans, and Target Benefit Plans. I have read all of the notes and think I have it and then get a…
Read MoreDoes Car Insurance Follow the Car or the Driver?
Does Personal Auto Policy (PAP) insurance follow the car or the driver? The answer is… it depends! Let’s face it. This is can be a confusing topic. It’s no wonder there’s confusion – an online search of this simple question returns dramatically different opinions; some are correct, some partially correct, and some are incorrect. But even the…
Read MoreCFP® Certificants in the News: Helping Veterans Stay Financially FIT
On Memorial Day, we honored those brave men and women who gave their very blood to protect and defend our freedoms. The sheer number of those who gave it all is humbling. Since our nation’s founding, those servicewomen and servicemen who died while serving is roughly equal to the population of Dallas, Texas – 1.3…
Read MoreTo Roth or Not to Roth, That Is The Question
Conventional wisdom would have us believe that after-tax Roth IRA contributions only make sense if we expect higher taxable income and higher income tax rates in retirement than now. Is conventional wisdom wrong? Not completely but it is woefully simplistic in a complex financial world. Especially for client-facing advisors, the client implications of the Roth…
Read MoreGood to Know: Cryptocurrency Tax Myths Can Hurt You
At one time in the not so distant past, the sky was the limit (where have investors heard that before?) for cryptocurrency. Back then, it seemed like all of the cool kids had cryptocurrency and subsequently, despite ups and downs, its popularity continues. But what is the attraction of this phenomenon? Three potential explanations follow.…
Read MoreImpact of Market Risk Premium on Price of Common Stock
Course: Investment Planning Lesson 14: Evaluating Portfolio Performance Student Question: I’ve seen this question come up a couple times, but can’t seem to grasp the answer. “If the Market Risk Premium were to increase, all other things being equal, the value of common stock would…” The answer is “decrease”, but that makes no sense to…
Read MoreReverse Stock Splits
Course: Investment Planning Lesson 14: Evaluating Portfolio Performance Student Question: Hello! Re: Reverse Splits: When companies decide to do a reverse stock split, does the company always take in the outstanding shares as “treasury stock”? If not, what happens to the outstanding stock that has been taken away? Where does it go on the balance…
Read MoreGood to Know: Tricks, Traps and Opportunities in the 20% Qualified Business Income Deduction
Today, we conclude our 4-part series with insights into tricks, traps and planning opportunities in the 20% Qualified Business Income Deduction (QBID) under Internal Revenue Code Section 199A, brought to us courtesy of the Tax Cuts and Jobs Act. But first, here’s an uber quick refresher of key concepts from the previous three QBID blogs:…
Read MoreGood to Know: Calculating The 20% Qualified Business Income Deduction – The Basics
In our most recent blog on this topic – Part 2 of a 4-part series – we explained how Congress denied or restricted the 20% Qualified Business Income (QBI) deduction to owners of Specified Trades or Businesses (SSTBs) that earned more than an indexed amount. Today, in Part 3 of our 4-part series, we will…
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