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OASDI Disability Income Benefits
Which of the following statements concerning OASDI disability income benefits is correct? Disability is defined as the inability to perform all major duties of the insured’s own occupation. Unless specifically exempted, a waiting period of 12 months must be satisfied. If the disabled worker is also receiving workers compensation benefits, the full OASDI benefit is…
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ALERT for CFP® Candidates – Add Points to Your Score
CFP® Certificants in the News Those planning to take the CFP® Exam must be aware of how recent changes to the exam structure could affect your score. We will identify the exam change and the takeaway that could add points to your score. The Exam Change The CFP® Exam was traditionally structured as a 170-question,…
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Value of Life Insurance in Buy-Sell Agreements
Course: Insurance PlanningLesson 17: Business Uses of Life Insurance Student Question: Do Buy-Sell Agreements account for projected growth of the company? Do the life insurance benefits increase over time to account for projected growth, or perhaps can they invest and grow conservatively to keep up with inflation (or COLA on the plan)? Thanks, Thomas Instructor…
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Section 179 Expensing
Which of the following expenses can Vicki expense entirely under Section 179 expense assuming she meets all other requirements? $10,000 for a new coat of paint in the lobby and office $20,000 for a new roof on the warehouse $30,000 for vacation $25,000 for new computers CLICK TO REVEAL ANSWER Expand D is the answer.…
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5 Habits of Successful CFP Exam Takers
CFP® Certificants in the News This blog is dedicated to CFP® Candidates, especially those planning to take the CFP Board Exam soon. What better place to begin planning than planning to pass the CFP Board Exam? By the way, hope is not a plan. Hope is a wonderful quality but we need a specific, sequential…
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Unused Premiums in Term Insurance
Course: Insurance PlanningLesson 12: Types of Life Insurance Student Question: Could you help clarify the term “unused premiums” as it relates to term life insurance? I guess I don’t see how you could have a premium not used in term life. Thanks, Michael Instructor Response: Hi Michael, Assume you pay $6,000 in annual prepaid premiums…
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Basis of Inherited Property
Bill Farmer bought 1,000 acres of farmland for $300,000. When his oldest son married, Bill gave him 400 acres for a farm. When Bill died this year, the remaining 600 acres were divided in Bill’s will between his two younger sons. The 600 acres had a fair market value at Bill’s death of $600,000. Which…
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Last Minute Tax Deductions for 2020
Good to Know Taxpayers may reduce their 2020 taxable income by tens of thousands of dollars by contributing to tax-deductible IRAs, 401(k)s, and other accounts by May 17, 2021. Traditional Deductible IRA Contributions Taxpayers who are unaware of this opportunity or miss the usual April 15, 2021, deadline may contribute to an IRA for 2020…
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Percentage of Completion Method
Course: Income Tax PlanningLesson 10: Recognition of Expenses, Losses, and Deductions Student Question: 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 +…
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