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Remote Proctoring Option for September 2020 CFP Board Exam
CFP® Board Updates On July 16th, the CFP Board announced an update to arrangements for the September 2020 examination. For candidates who would need to travel more than 50 miles or have a health concern, so long as they can meet minimum technology requirements, a remote proctoring option will be available. This is in response…
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Present Value versus Payment Function on Calculator
Course: Fundamentals of Financial PlanningLesson 7: Educational Aid and Funding Calculation Student Question: In Step 5: solving for LUMP SUM needed today… Step 5: Determine funding actually needed Lump sum needed TODAY to fund the full cost of college education. How come we are solving for PV and not PMT? Thanks. Kelly Instructor Response: Hi Kelly, If any…
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Appropriate Valuation Method
Sam McBuck has an estate of $10 million and would like to leave it to his nephews. Sam assumes he will live for at least 5 more years. The property in Sam’s estate currently includes the following assets: An apartment building in downtown New York that Sam owns with three partners, each of whom wants…
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Beware the Custodial Account for College Savings
Good to Know Custodial accounts are popular because they are easy to establish. A bank or brokerage firm can help your client fill out a simple form and have the account established almost immediately. Clients are also attracted to the contribution limits – there are no limits! Before going farther, let us set a quick…
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Employee Incurred Expenses and the Itemized Deduction
Course: Income Tax PlanningLesson 6: Employer-Sponsored Total Income Exclusions Student Question: Hi- Could you explain the Business Deduction for work related expense in very simple language. I don’t quite follow whether it’s a deduction or not. Thanks. M Instructor Response: Hello Kyle, If any employee-incurred expenses related to her employer’s business, such as gifts to customers, for example, those…
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Which Trust is it?
Kathleen transferred her closely held stock to a trust for the benefit of her two daughters. Kathleen will receive a $50,000 distribution each year for the next 10 years from the trust. At the end of the trust term, Kathleen’s daughters will each receive 50% of the remaining trust assets. What type of trust did…
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CFP Board Announces Joint Scholarship to Benefit African American/Black Candidates for CFP® Certification
CFP® Board Updates “The CFP Board Center for Financial Planning (the Center) announced … [on June 29, 2020] a new scholarship in partnership with Facet Wealth, Inc., to advance diversity and inclusion in the financial planning profession. The Facet Wealth Scholarship for Increased Diversity in Financial Planning will support African American/Black candidates seeking to become…
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Deducting Gifts to Customers
Course: Income Tax PlanningLesson 10: Recognition of Expenses, Losses, and Deductions Student Question: Hi- Can you clarify for me the deductibility of gifts when we’re talking about employees of a business versus self-employed individuals? It seems the rules have changed on these. Thanks. Kyle Instructor Response: Hello Kyle, Thank you for the question. Things have certainly changed. An employee (W2 employee or statutory employee) can no…
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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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