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Percentage of Completion Method
Course: Income Tax PlanningLesson 10: Recognition of Expenses, Losses, and Deductions Student Question: Hi- Question 5 (below) did not make sense to me. I started out by breaking down by year — 400,000/2,100,000*3,000,000 and so forth, but did not arrive at the correct answer. So then I tried adding up 3 year — 400+650+700/2100000*3,000,000. That…
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…
How to Avoid Paying An Extra $2.4 Million in Gift and Estate Tax.
Good to Know A married couple, both U.S. citizens, can jointly gift or bequeath as much as an astounding $24,120,0001 in 2022 without paying gift, estate, or generation-skipping transfer taxes. Each spouse has a $12,060,000 exclusion for gift and estate tax plus a generation-skipping transfer tax exemption of that same amount for 2022. These exclusions…
Annual Return and Compounding
Course: Fundamentals of Financial PlanningLesson 5: Using the Calculator Student Question: Hi- My question relates to being able to clearly distinguish when the CFP Board exam will require an annual, or other period for the answer. Question 5(b) asks: “What is the rate of return on Investment 2 using daily compounding?” What is the annual…
Tax Saving Strategies
Dan and Karen Burles have 2 children, Coy (age 12, student) and Roger (age 21, student). Dan and Karen own a security equipment sales and installation business, an LLC. Dan and Karen are in the highest income tax bracket. They have a portfolio with $130,000 of municipal bonds (annual income $5,200), $80,000 of corporate bonds…
Guide to Careers in Financial Planning
CFP® Certificants in the News CFP Board’s CENTER FOR FINANCIAL PLANNING publishes an intriguing series of insights into career paths for the new certificant, career changer, and even experienced certificants. These insights can be found in the GUIDE TO CAREERS IN FINANCIAL PLANNING. The GUIDE identifies over six career paths, helps clarify the types of…
Investments Held by Exchange Traded Funds
Course: Insurance PlanningLesson 19: Immediate Annuities – A Tax-Advantaged Income Planning Tool Student Question: Hi- The text on this page says the annuities don’t hold mutual funds or ETFs. What are they holding to provide an S&P “type return?” The text goes on to discuss components that sound a lot like ETFs (mid value, large…
Ratio Percentage Test
Which of the following statements concerning SEP and Keogh plans is not correct? A SEP must meet fewer reporting requirements than are imposed on a Keogh plan. A SEP is not considered by the IRS to be a qualified plan as is a Keogh plan. A SEP is similar to a defined-contribution plan; a Keogh…
Not All Christmas Presents are Welcome: Four Potential Tax Changes to Monitor
Good to Know Let’s face it-it may be easier to handicap who’ll win the Presidency in 2024 than to forecast how, or even if, your taxes will change over the next few months. This blog will point out a select few areas that could change your tax landscape dramatically, including: Paying more capital gains tax,…