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Real Estate Income and IRA Contributions
Course: Retirement PlanningLesson 1: Using IRAs to Build and Distribute More Retirement Income Student Question: This page states that rental income is not included in the definition of earned income. If the client is a professional real estate developer whose income is derived mainly from rental income, would they be able to contribute to an…
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Reducing the AMT
Which of the following tax planning ideas would help Beth the most if she currently has to pay AMT taxes? Pay her $1,000 January mortgage payment before the end of the year. Pay her $2,000 January alimony payment to her ex-husband before the end of the year. Recognize a $3,000 short term capital gain on…
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CFP Board Exam Pass Rate was 65% in March 2023
CFP® Board Updates The most recent CFP Board exam, administered in March 2023, produced a pass rate of 65%. That was in increase of 1% from November 2022, and in-line with previous exam pass rates that all hovered in the mid-60% range. There was also a record number of exam test takers in March, with…
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Premium Payments on Buy-Sell Agreements
Course: Insurance PlanningLesson 17: Business Uses of Life and Disability Insurance Student Question: I have a quick question regarding buy/sell agreement; not clear who would pay the premiums on disability and or life insurance on the principals and the key employees? Instructor Response: Great question. A buy-sell agreement relates to owners of the business while…
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Characteristics of a Will
Which of the following statements concerning a Will are correct? A will can be altered, amended, or completely rewritten at any time before a person’s death. A will cannot be rewritten but can be amended at any time by a codicil. A will must be signed by the maker and usually must be witnessed by…
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Advanced Roth Strategies—Part II of II
Good to Know This article continues our goal to create or deepen a financial advisor’s awareness of the creative use of Roth IRAs or Designated Roth Accounts in special circumstances such as: Resolving the tension between building an emergency reserve and saving for retirement, Reducing income taxes on Social Security Benefits for retirees, and Lowering…
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Distributable Net Income Application
Course: Estate PlanningLesson 9: Income Taxation of Trusts and Estates Student Question: Hi Bruce When a Trust has an income accumulation year, must the Trust pay taxes on that accumulation of DNI in the year of accumulation? If so, why do that – why would a Trust hold income at the confiscatory Trust income tax…
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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…
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Results From March CFP Board Exam
CFP® Certificants in the News The results are in. We saw a continuation of existing trends and at least one surprise from the results of the March 2023 CFP Board Exam, including: Number of examinees taking the exam, Primary reason for taking the exam, Employer-provided financial support. Number of Examinees Taking the Exam An impressive…
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