Blog
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 +…
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…
CFP Board Launches Spring Awareness Campaign
CFP® BOARD UPDATES The CFP Board has launched its Spring 2021 Public Awareness Campaign. The focus of the campaign is to raise awareness of the value of the CFP® Certification and the peace of mind that comes from having a CFP® Professional help prepare a financial plan. The Board has been running awareness campaigns since…
Contingent Business Interruption versus Extra Expense Insurance
Course: Insurance PlanningLesson 6: Commercial Property and Liability Insurance Student Question: Can you please provide an example of contingent business interruption and extra expense insurance? Thanks, Laura Instructor Response: Hi Laura, Good question. Here’s how contingent business interruption insurance might apply. You own a nationwide chain of jewelry stores that specialize in gold/palladium alloys. Your…
Power of Attorney over Financial Affairs
Laura is concerned she will develop Alzheimer’s disease later in life similar to her mother. Which of the following documents should Laura execute to make sure her son is able to handle her financial affairs in the event she does develop Alzheimer’s disease? Durable springing power of attorney Nondurable springing power of attorney Durable nonspringing…
Reprieve from the Warden: Individual Federal Income Tax Return Due Date Extended
Good to Know “WASHINGTON – The Treasury Department and Internal Revenue Service announced today that the federal income tax filing due date for individuals [including sole proprietors and owners of certain single-member LLCs] for the 2020 tax year will be automatically extended from April 15, 2021, to May 17, 2021.” “Individual taxpayers can also postpone…
Maximum Family Benefit
Course: Insurance PlanningLesson 10: Social Security Student Question: Does the maximum family benefit apply to a husband and wife that are both fully insured if the combined total between the two exceeds the maximum family limit? If I understand correctly, the maximum family limit only applies if there are beneficiaries within the family receiving benefits…
S Corp and C Corp Gross Income Calculation
A client received an annual salary from his employment of $40,000. He was a 50% owner of both a C Corporation and an S Corporation. The C Corporation had net profits of $20,000 and the S Corporation had income of $10,000. Neither corporation made a distribution. The client’s revocable trust had income of $5,000 but…
CFP Board Relaunches “LetsMakeAPlan”
CFP® Certificants in the News Relying on extensive consumer research and user testing, Certified Financial Planner Board of Standards, Inc. (CFP Board) recently launched its redesigned and updated consumer-facing website, LetsMakeAPlan.org (LMAP). The refreshed website includes updated content and a modernized interface with a mobile-friendly design to improve user experience, educate consumers on financial planning concepts and…