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CFP® Practice Question: Investment Advisors Act of 1940
Which of the following individuals need to register with the SEC under the Investment Advisers Act of 1940? Adam, who retired last year from a big brokerage house but he recently started providing services to 12 clients who live in his neighborhood that he met while out golfing. Belinda, who writes weekly investment articles for…
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Good to Know: Claiming Dependents – Waste of Time or Great Way to Save on Income Taxes?
We lost the deduction for personal and dependency exemptions starting in 2018 under the Tax Cuts and Job Act. With the loss of the deduction, many taxpayers rightly ask, “Should I even bother documenting and claiming my dependents on my tax return?” That a reasonable question and the answer is… YES for many taxpayers. Claiming…
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Mortgage-Backed Bonds and Mortgage Pools
Student Question: Course: Investment Planning Lesson 9: Fixed Income Securities I don’t clearly understand how money is made in the mortgage-backed bond process. What are mortgage pools? Does the investor make money from the interest of the pooled mortgages? What if the mortgages default? Thanks, Kevin Instructor Response: Great question. Here’s a quick example: John Doe…
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Medical and Charitable Travel Mileage Deductibility after 2017
Course: Income Tax Planning Lesson 8: Arriving at Taxable Income Student Question: Hi – I know that the Miscellaneous Deduction has been suspended; therefore, reimbursed employee mileage is no longer deductible. Can individuals still deduct mileage related to medical and charitable travel? If so, how is this deduction taken? Thanks! Justin P Instructor Response: Hi Justin, Good question…
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Good to Know: Should you Convert to a C Corporation for the 21% Tax Rate?
Conventional wisdom says that sole proprietorships, partnerships, Sub-S Corporations and certain LLCs (“pass-through” business structures) should strongly consider converting from their present business form into a C Corporation (C Corp). Why? The 21% C Corp income tax rate from the Tax Cuts and Jobs Act can be seductive, especially when personal income tax rates can…
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CFP Board Career Center Career Fair
Don’t miss out! There’s still time to sign up for the CFP Board Career Center Career Fair. Join us on Wednesday, April 19, from 1-5 PM (ET) for an exclusive opportunity to connect with recruiters from top employers in the financial services industry—all without leaving your home or office! Don’t miss your chance to engage…
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Student Question of the Week: Market Risk Premium
Student Question from AlisonCourse: Investment Planning Student Question: Can you help explain this question better? If the market risk premium were to increase, doesn’t that mean the amount of compensation and investor desires would increase, so the value of stock would need to increase further? Board Released Question If the market risk premium were to increase, the value…
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CFP® Practice Question: Disadvantages of S Corporations
Which of the following statements concerning potential disadvantages of S Corporations is (are) correct? (1) If the business continues to produce losses after the start-up period, the shareholders’ basis in their stock might become exhausted and then additional losses would not be tax-deductible. (2) The receipt of significant amounts of passive income by an S…
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Student Question of the Week: Taxation of Life Insurance Proceeds
Student Question from KrishnaCourse: Insurance Planning Student Question: I think I’m missing something w/this concept. I don’t understand how life insurance proceeds would be taxable to the owner’s estate when the beneficiary is someone else? Example: If I am the policy owner and I purchase life insurance on myself and name my sister as the…
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