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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…
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…
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…
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…
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…
COVID-19 and Living Trusts
Good to Know Incapacity planning may be on the minds of many Americans as COVID-19 continues to threaten our health. The Durable Power of Attorney was discussed as an incapacity planning tool in our most recent blog. While this tool is generally effective, it is not unusual for banks and other financial institutions to question…
Deducting Advisory Fees
Course: Income Tax PlanningLesson 10: Recognition of Expenses, Losses, and Deductions Student Question: Hi- I read that advisory fees are no longer deductible. So, in this question (below), is it deductible because this is treated as a business deduction since Roger is Self-Employed? Alisha Sheridan, A CFP licensee and fee-only financial planner, has assisted Roger Regate, a self-employed physician, in tax and investment…
Section 303 Redemption
A Section 303 redemption is most likely appropriate for which of the following estates? At Fred’s death, Fred owned all of his assets including the stock of a closely held corporation in Joint Tenancy WROS with his wife. Before Gloria’s death, she transferred all of her assets including the stock in a closely held corporation…
Highlights of Recent CFP Board Discipline
CFP® Certificants in the News The annual rate of public discipline against CFP® Certificants is estimated at less than two tenths of one percent. Yet, even the best of professions needs ethical enforcement. For example, CFP Board published a notice of public discipline against 13 Certificants on June 3, 2020. We will not repeat the…