# Blog

## Sale of Home by Surviving Spouse

April’s husband Jay died 5 years ago when their home was worth \$600,000. Due to the soft real estate market, April kept the house until the housing market recovered. She finally sold the home this year for \$950,000. What is the amount of April’s taxable gain or loss if she bought the home jointly with…

## Golden Anniversary—CFP® Certification Turns Age 50

CFP® Certificants in the News According to a recent CFP Board article, “In 1973, the College for Financial Planning minted its first class of 42 trail-blazing men and women specifically trained in the professional discipline of financial planning. Half a century later, CFP Board certifies nearly 98,000 CFP® professionals in the U.S. That number will…

## Understanding the Relationship Between Coupon Rates and Duration

Course: Investment PlanningLesson 9: Fixed Income Securities Student Question: There is a question regarding duration that I continue to struggle with. Which of the following are true:1-Lower coupon bonds are more sensitive to interest rates than high coupon bonds.2-There is inverse relationship between bond prices and change in interest rates.3-There is a positive relationship between coupon rates and duration.…

## Transfer of Interest in Property Held in Joint Tenancy

Gary Chapelle owns a duplex with his brother in joint tenancy with right of survivorship. Gary would like to pass his interest in the property to his son, Bill, and Gary has provided in his will that his interest in the duplex will pass to Bill. Which of the following statements concerning the transfer of…

## Not All Sunsets Are Beautiful

Good to Know Income taxes and transfer taxes will rise-in some cases painfully-after December 31, 2025. Transfer taxes include gift, estate, and generation-skipping taxes. Income tax rates will increase and transfer taxes may rise as taxpayer friendly provisions of the Tax Cuts and Jobs Act (TCJA) expire (sunset) for years beginning on or after January…

## Defining Basis Points

Course: Investment PlanningLesson 15: Fundamentals of Derivatives – Futures and Options Student Question: Can you please explain what Basis points are and how/why they are generally used? Instructor Response: There are 100 basis points in 1%.  Basis points are merely a common method of measuring investment fees or returns.   An exchanged traded fund may charge a…

## Basis on Sale of Gifted Stock

Tom gave his son, David, a birthday present of Big M stock with a fair market value of \$50,000. Tom paid gift tax of \$11,700 as Tom had previously given David earlier this year a cash gift equal to the annual gift tax exclusion amount. Tom’s adjusted basis in the stock on the date of…