Blog
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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September 2021 CFP Board Newsletter
CFP® Board Updates The CFP Board periodically releases a newsletter summarizing recent updates, changes, and news. The September 16, 2021 edition includes: Survey of CFP® Professionals Shows Continued High Satisfaction with Career Choice, CFP® Certification CFP Board Requests Comments on Proposed Revisions to Sanction Guidelines and Procedural Rules by September 21 CFP Board Imposes Sanctions…
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Calculating Late Filing/Paying Penalties
Course: Income Tax PlanningLesson 1: Introduction to Taxation Student Question: For this question, could you send me the math behind finding the answer? I want a better understanding of how the penalty was assessed. Thank Andrew Review Exercise: Jerry’s taxes were due April 15th. He filed his return in October of the same year, and…
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Selecting an Appropriate Trust
Which of the following trusts should Jason establish in his Will to provide for his son Gaven’s living expenses until Gaven reaches age 65 if Gaven is currently a 30-year old unemployed aspiring actor? 2503(b) trust 2503(c) trust Crummey trust Totten trust CLICK TO REVEAL ANSWER Expand A is the answer. The 2503(b) trust would…
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Tax-Avoidance On Steroids—Private Placement Life Insurance
Good to Know CFP Board expects a certificant to serve a spectrum of client demographics based upon factors such as age, gender, culture, and net worth. This blog summarizes a unique income tax strategy for high and ultra-high net worth clients. Private Placement Life Insurance (PPLI) can help a client: Avoid income tax on investment…
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Calculating Rate of Return
Course: Investment PlanningLesson 1: Key Principles of Investing Student Question: Hey Dan, Hope you are doing well. Can you help solve a practice question? I looked through the textbook and my notes, and just couldn’t wrap my brain about how to solve the problem below. The confusing part to me is that the fund was not…
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Owner of a Grantor Trust
In which of the following situations would the grantor of a trust not be considered the owner? The grantor has a reversionary interest in the trust, of which the grantor’s son is the sole beneficiary, but the grantor cannot exercise this power until eight years after transfer of property to the trust. The grantor retains…
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CFP Board Encourages Pro Bono
CFP® Board Updates Pro Bono is typically thought of as something attorneys provide. While the work attorneys do to help those in difficult legal situations without access to competent support, it’s just as important that those in financial services provide a similar benefit when possible. If you’re a CFP® Professional with a desire to help…
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Passing Property Via Will
Course: Investment PlanningLesson 14: Evaluation Portfolio Performance Student Question: Hello – I’m a little confused about the example (below) discussing an heirloom of only sentimental value. Why would this be titled at all for a will, especially since an earlier lecture said items of no value would pass through will as the situation does not…
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