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Section 303 Redemption
A Sec. 303 redemption is most likely appropriate for which of the following estates? At Fred’s death, Fred owned all of his assets including the stock of a closely-held corporation in joint tenancy WROS with his wife. Before Gloria’s death, she transferred all of her assets including the stock in a closely-held corporation to an…
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Will AI Replace Human Financial Advisors?
CFP® Certificants in the News Surprisingly, about 3 in every 10 investors either trust or somewhat trust purely AI-generated financial advice, according to a recent article by CFP Board. However, financial advice from a human financial advisor still reigns for most investors-almost 9 of 10 trust their advisor’s advice. Interestingly, the trust level in AI-generated…
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Donating Short-term Appreciated Securities
Course: Income Tax PlanningLesson 15: Property Transactions Student Question: In the lesson, deducting donations of ‘cash’ versus ‘long term appreciated securities’ are differentiated. I’m curious about “short term appreciated securities”. In other words, if I own a stock – bought at $10,000 and it’s worth $50,000 when I donate, but I’ve only owned it 6…
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Calculating Realized Compound Yield on a Bond
An investor bought a bond at par that matures in 15 years. The bond pays an annual coupon of $130 and the reinvestment rate is 9%. What is the realized compound yield of this bond? 11.05% 12.55% 13.00% 14.10% CLICK TO REVEAL ANSWER Expand A is the answer. One would anticipate a realized compound yield…
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CFP Board Requests Comments on Revised Standards
CFP® Board Updates The CFP Board recently announced they are asking for comment on the revised Sanction Guidelines and Fitness Standards. The CFP Board and its board members encourage comments to ensure the proposed revisions echo feedback and insights from CFP® Professionals. The proposed revisions are based on a comprehensive review of the Sanction Guidelines…
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Calculating Required Insurance
Course: Insurance PlanningLesson 6: Commercial Property and Liability Insurance Student Question: Would you please help me understand where the 97.2% insured calculation is coming from on review question #2 below? The answer states the the building is 97.2% insured and I am having trouble understanding how that was calculated. Peter purchased an apartment building for…
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Mid-Quarter Depreciation Convention
Course: Income Tax Planning Student Question: Hello, see the question below. I got this question right, but the explanation of why I got it right is weird. I thought mid-month depreciation was only used for real property, and this is saying it is used for equipment. Then, the explanation of the correct answer talks about…
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Early Retirees—Alternatives to Medicare, Part III
Good to Know This article is part III of a IV-part series to help early retirees make informed healthcare coverage choices for the years before they’re eligible for Medicare. In Part I, we peeled back the onion on faith-based medical cost-sharing ministries. In Part II, we illustrated how Affordable Care Act (ACA) Policies can help.…
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Maximum Potential Gain On Long Call
What is the maximum potential gain for an investor who is long a call? It is limited to the amount paid for the option Capped by the exercise price It is equal to the loss of a similar short put position Unlimited CLICK TO REVEAL ANSWER Expand The correct answer is number 4. An investor…
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