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| Author : | Danny C Santucci, JD |
| Course Length : | Pages: 346 ||| Word Count: 17,7372 ||| Review Questions: 200 ||| Final Exam Questions: 165 |
| CPE Credits : | 33.0 |
| IRS Credits : | 33 |
| Price : | $162.45 |
| Passing Score : | 70% |
| Course Type: | NASBA QAS - Text - NASBA Registry - IRS Enrolled Agents |
| Technical Designation: | Technical |
| Primary Subject-Field Of Study: | Taxes - Taxes for Course Id 2353 |
| Description : | This presentation integrates federal taxation with overall financial planning. The course will explore tax strategies relating to the central financial tactics of wealth building, capital preservation, and estate distribution. The result is a unified explanation of tax economics that will permit the tax professional to locate, analyze, and solve financial concerns. Designed to improve the quality of services to clients and the profitability of engagements, this program projects the accountant into the world of financial planning. This course will give the participant practice in analyzing problems, developing solutions, and presenting final personal financial plans to clients. The course surveys wills, living trusts, gifts, marital property, and probate avoidance. Will and trust forms are explored along with living wills, durable powers of attorney, and nominations of conservator. Designed to eliminate estate problems and death taxes, the emphasis is on practical solutions that are cost effective. |
| Usage Rank : | 15000 |
| Release : | 2024 |
| Version : | 1.0 |
| Prerequisites : | General understanding of estate and gift taxation. |
| Experience Level : | Overview |
| Additional Contents : | Complete, no additional material needed. |
| Additional Links : |
Estate Tax
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| Advance Preparation : | None. |
| Delivery Method : | QAS Self Study |
| Intended Participants : | Anyone needing Continuing Professional Education (CPE). |
| Revision Date : | 29-Aug-2024 |
| NASBA Course Declaration : | Participants must complete the final examination within one year of purchase and with a minimum passing grade of 70% or better to receive CPE credit unless otherwise noted on the Course History page (i.e. California Ethics must score 90% or better). After logging in click on the Course History links on your My Courses page for the Begin date and Expire date for the Final Exam. |
| Approved Audience : | NASBA QAS - Text - NASBA Registry - IRS Enrolled Agents - 2353 |
| Keywords : | Taxes, Complete, Guide, Estate, Gift, Taxation, v14, cpe, cpa, online course |
| Learning Objectives : |
As a result of studying each assignment, you should be able to meet the objectives listed below each assignment. ASSIGNMENT SUBJECTChapter 1 Financial Tax Planning At the start of Chapter 1, participants should identify the following topics for study:
* Investment purposes * Myths of retirement * Investment goals * Investment needs of five critical decades * Investment vehicles & entities * Retirement - the ultimate objective * Retirement costs & income needs * Retirement plan development * Basic planning elements After reading Chapter 1, participants will be able to:
2. Specifying ways to hold title to assets starting with the simplest and most direct way to hold property and citing the tax benefits and drawbacks of co-tenancies, corporations (both C & S), partnerships, qualified retirement plans, and trusts. 3. Recognize the importance of early retirement planning using a balance sheet method, identify cost and income needs specifying the purpose of savings. Chapter 2 Building an Estate At the start of Chapter 2, participants should identify the following topics for study:
* Information reporting on taxable income * Rules of budgeting * Cash * Acquisition * Assets * Rules of management * Managing risk * Taxes * Leverage After reading Chapter 2, participants will be able to:
2. Determine the distinctions between tax-free and tax deferred income, and identify tax-deferred investments. 3. Specify ways to shelter income stating how income sheltering amplifies investment return. 4. Recognize the budgeting of income into cash by containing expenditures and developing discretionary income and determine how to convert income into assets by purchasing investments. 5. Specify tax-advantaged investments citing management rules and determine the economic impact of accelerating deductions. Chapter 3 Preservation of Wealth At the start of Chapter 3, participants should identify the following topics for study:
* Tracking spending * Building savings * Designing a budget * Determining worth * Analyzing net worth * Ignorance * Inflation * Taxes * Tax planning tactics After reading Chapter 3, participants will be able to:
2. Specify why individuals should take primary responsibility for investment planning and recognize basis planning tactics. Chapter 4 Deferral At the start of Chapter 4, participants should identify the following topics for study:
* Related party exchanges * Personal & multiple property regulations * Delayed (deferred) exchange regulations * Actual & constructive receipt rule * Qualified contribution plans * Tax-deferred annuities * Installment sales * At-risk rule * Deferred compensation and options After reading Chapter 4, participants will be able to:
2. Specify the related party §1031 restrictions identifying prohibited parties or entities and disallowance of personal property exchanges. 3. Recognize the use of an intermediary and the disallowance of personal property exchanges, identify retirement plan design, and list popular methods for providing for retirement. 4. Specify the requirements for an installment sale, determine how to elect out of the installment method, and determine how to use a property option to receive income and postpone tax. Chapter 5 Reduction At the start of Chapter 5, participants should identify the following topics for study:
* Low Income Housing Credit & Child & Dependent Care Credit * Estimated taxes * Interest * Automobile deductions * Business entertainment deductions * Depreciation & cost recovery * Net operating losses * Tax breaks for nonitemizers * Amended returns After reading Chapter 5, participants will be able to:
2. Recognize the types of deductible and nondeductible interest types including the deductibility of investment interest, prepaid interest, points, and prepayment penalties. 3. Identify business vehicle operating costs using (or switching between) the actual cost method or the standard mileage rate. 4. Recall the statutory exceptions to the disallowance of entertainment deductions and recognize the application of R.R. 90-23 and R.R. 99-7 to the deduction of transportation costs to a temporary work location. 5. Determine the requirements of business asset expensing under §179 and identify sources of §172 net operating losses (NOLs) recognizing carryback and carryover rules. Chapter 6 Income Splitting At the start of Chapter 6, participants should identify the following topics for study:
* Deductible business expenses * Home-office deduction * C or regular corporations * S corporations * Family partnerships * Kiddie tax trap * Childcare & education * Gifts * Interest-free loans After reading Chapter 6, participants will be able to:
2. Identify the tax treatment of personal and business casualty losses and bad debts. 3. Determine the uses and tax characteristics of regular and S corporations by recognizing the taxation of these entities including their ability to split income. 4. Recognize the use of partnerships to split income among partners and reduce estate taxes. 5. Identify the use of custodianship to split income specifying “kiddie” tax considerations and recognize good investments for children including bonds. Chapter 7 Elimination At the start of Chapter 7, participants should identify the following topics for study:
* Municipal bonds * Divorce & separation settlements * Gifts & inheritances * Life insurance * Fringe benefits * Taxation & valuation of benefits * Employee expense reimbursement & reporting * Fixed & variable rate allowances * Social security After reading Chapter 7, participants will be able to:
2. Recognize employer deductions as a means to increase tax-free incentive-based compensation for employees using fringe benefits under §132 and employer-paid accident & health coverage. 3. Identify how to comply with ERISA plan requirements, and specify the proper reporting of reimbursed and unreimbursed business expenses under accountable and nonaccountable plans. Chapter 8 Asset Protection At the start of Chapter 8, participants should identify the following topics for study:
* Types of creditors * Fraudulent transfers * Preparation for asset protection * Types of insurance * Buy-sell agreements * Individual ownership and corporate ownership * Asset protection aspects of trusts * Co-tenancy and partnerships * Divorce After reading Chapter 8, participants will be able to:
2. Recognize the importance of creditor types associated with asset protection and fraudulent transfers. 3. Specify fraudulent transfer laws listing badges of fraud, and define statutes of limitation, criminal penalties, and permissible asset transfers. 4. Recognize the degree and necessity of an asset protection plan using net worth and asset values on a balance sheet. 5. Identify the ways that insurance and buy-sell agreements can offer asset protection citing the asset protection elements of homeowner's, automobile, and disability insurance. 6. Recognize the asset protection advantages and disadvantages of ownership formats and entities determining the use of individual ownership and corporate and identifying testamentary trusts, living trusts, and subcategories of trusts. 7. Identify the requirements for an enforceable marital agreement, and determine what constitutes post-nuptial and premarital agreements stating how they relate to divorce settlements and divisions. Chapter 9 Estate Planning At the start of Chapter 9, participants should identify the following topics for study:
* Legal documents * Estate planning team * Estate administration * Transfers within probate * Transfers outside probate * Transfers using a trust * Special planning tools * Facts After reading Chapter 9, participants will be able to:
2. Specify estate planning tools that save death taxes while retaining maximum control including family partnerships, exclusions, and valuations. Chapter 10 Estate & Gift Taxes At the start of Chapter 10, participants should identify the following topics for study:
* IRS valuation * Estate tax return & payment * Tax basis for estate assets * Generation-skipping transfer tax * Application of gift taxes and valuation * Gift tax annual exclusion * Gift tax marital and charitable deductions * Gift tax advantages and disadvantages * Shifting income & gain After reading Chapter 10, participants will be able to:
2. Determine what constitutes a taxable estate under §2501 specifying what assets are included in a gross estate using basic categories of property and transfers. 3. Specify estate deductions allowed under federal estate tax law stating their tax advantages and disadvantages. 4. Determine the value of a decedent’s assets using permitted elections, recognize the use of Form 706 to pay any estate tax due, and select the tax basis of estate assets. 5. Recall the advantages of gift planning including estate reduction recognizing the impact of the GST, specify the steps to compute gift tax identifying the gift tax exclusion amount, and determine the value of gifts including those that are split. 6. Identify the various gift tax exclusions, including the annual, medical expense, and tuition exclusions. Chapter 11 Wills & Probate At the start of Chapter 11, participants should identify the following topics for study:
* Requirements of wills * Executors and guardians * Types of wills * Title implications * Changes to a will * Advantages of a will * Simple will * Probate pros and cons * Probate avoidance After reading Chapter 11, participants will be able to:
2. Identify the pros and cons of probate proceedings and the dangers of ancillary probate and intestate succession. Chapter 12 Trusts At the start of Chapter 12, participants should identify the following topics for study:
* Common elements of trusts * Types of trusts * Living trusts * Income tax & trusts * Gift tax & trusts * Estate tax & trusts * Identification, recital & property transfer clauses * Income and principal & revocation and amendment clauses * Trustee and trust termination clauses After reading Chapter 12, participants will be able to:
2. Specify recommended living trust provisions and identify the application of gift and income tax including the use of a grantor-retained income trust. Chapter 13 Entity & Title At the start of Chapter 13, participants should identify the following topics for study:
* Corporations * Trusts holding title & business trusts * Co-tenancy taxation, percentage interests & partition * Partnership taxation & recapitalization * Family partnerships * Limited liability companies * Retirement plans * Custodianship * Estate After reading Chapter 13, participants will be able to:
2. Identify the title holding benefits of trusts, co-tenancy, partnerships, and limited liability companies and the tax characteristics of each and recognize the types of retirement plans used to provide lifetime benefits to a business owner and to employees. Chapter 14 Life Insurance, Annuities & Buy-Sell Agreements At the start of Chapter 14, participants should identify the following topics for study:
* Life insurance trusts * Deferred annuities * Private annuities * Buy-sell agreements * Purchase price & terms * Community property * Professional corporations * S corporations * Sole shareholder planning After reading Chapter 14, participants will be able to:
2. Identify the income, estate, and gift tax treatment of life insurance proceeds by:
b. Recalling the gift tax associated with the transfer of life insurance policies. 4. Recognize the differences between deferred annuities and private annuities and determine what constitutes an entity purchase agreement and a cross-purchase agreement and their tax and legal advantages. Chapter 15 Special Business Issues At the start of Chapter 15, participants should identify the following topics for study:
* Business valuation of qualified family-owned businesses * Business valuation of land subject to a conservation easement * Business valuation discounts * Redemptions * Buy-sell agreements * Death of spouse * Stock redemptions * Stock recapitalization * Deferred compensation agreements After reading Chapter 15, participants will be able to:
2. Determine how tangible assets are normally valued identifying those assets whose valuation is based on values other than book value, and specify the steps in R.R. 68-609’s valuation formula for intangible assets. 3. Identify special business valuation issues including redemptions under §303 by determining the value of a minority stock interest and fractional interests in order to obtain applicable valuation discounts and considering a buy-sell agreement. 4. Determine the tax treatment of a §302 corporate redemption and what exceptions exist to avoid dividend treatment. Chapter 16 Estate Tax Freeze Rules At the start of Chapter 16, participants should identify the following topics for study:
* Corporations, partnerships & exceptions * Qualified payment exception to zero value rule * Minimum valuation of a junior interest * Capital contributions, redemptions & recapitalizations * Attribution rules * Transfers of interests in trust * Term interests & joint purchases * Buy-sell agreements & options * Lapsing rights & restrictions After reading Chapter 16, participants will be able to:
2. Identify the “zero value” rule under §2701 by recalling the special lowest valuation rule and the limit this can have on increasing one’s estate. 3. Determine the application of §2701 provisions by identifying when an individual is deemed the owner of an interest based on the §2701 attribution rules and specifying when transfer tax adjustments will be made to transfers. 4. Recall the terms used in §2702 concerning transfers of interests in trust, identify the application of the zero value rule to a transfer of an interest in trust, and specify exceptions to §2702. 5. Determine the effect of options and liquidation rights on §2703 to ensure property is valued appropriately. Chapter 17 Elderly & Disabled Planning At the start of Chapter 17, participants should identify the following topics for study:
* Medicare * Medicaid & countable assets * Medicaid & non-countable assets * Medicaid & inaccessible assets * Private insurance * Healthcare decisions * Supplemental Security Income * Income & assets * Disability benefits After reading Chapter 17, participants will be able to:
2. Cite the eldercare benefits of Medicare, Medicaid, and Supplemental Security Income and identify the benefits of private insurance for catastrophic illness. 3. Identify Medicaid specifying how it relates to elderly health care decisions and specify the requirements that must be met in order to receive disability benefits. Chapter 18 Post-Mortem Planning & Tax Return Requirements At the start of Chapter 18, participants should identify the following topics for study:
* Federal returns * Decedent’s estate tax * Preparation of Form 706 * Estate income tax return * Filing requirements of decedent’s final income tax return * Included income * Exemptions & deductions * Filing the gift tax return * Special applications & traps of the gift tax return After reading Chapter 18, participants will be able to:
2. Cite the due dates of post-mortem federal forms, specify the filing requirements of a decedent’s estate tax return, and identify exceptions to the general rule of estate tax payment. 3. Determine the processes and procedures necessary in the preparation and filing of Form 706. 4. Identify the filing requirements for estate income tax and decedent’s final income tax returns by determining the estate income tax under available tax accounting methods and tax years; and 5. Determine the total income to be included on the decedent’s final income tax return using available exemptions or deductions. 6. Identify how to avoid penalties when filing a gift tax return for the decedent and when gifts are deemed completed. |
| Course Contents : | Chapter 1 - Financial Tax Planning Comparing Goals & Purposes Investment Purposes Purpose #1 - Comfortable Retirement Myths of Retirement Plan For 10 to 15 Retirement Years Stay With One Company to Retire With the Best Benefits Preserve Capital Retirees Are Taxed Less Housing Costs Are Less Just the Spouse and Me Medicare Will Cover Medical Bills Retirees End Up In a Nursing Home Purpose #2 - Education Purpose #3 - Family & Personal Stability Purpose #4 - Enjoyment of Life Purpose #5 - Commitment Investment Goals Find Your Place in Time “Know Thy Investment Self” Investment Vehicles & Entities Individual Corporate Trusts Co-Tenancy Partnership Retirement Plan Custodianship Estate Retirement Now - The Ultimate Objective Defining Retirement When Do I Want To Retire? What Kind Of Lifestyle Do I Want? Do I Want To Move? Determining Retirement Costs & Income Needs Developing a Plan Savings - The 10% Rule Selected Strategies for Savings Basic Planning Elements Chapter 2 - Building an Estate Assets, Income & Cash Income Type #1 - Taxable Information Reporting on Taxable Income Payments Salary & Wages Interest Income Dividends Tax-refunds Gambling Winnings Other Income Known to the IRS Real Estate Transactions Type #2 - Tax-free Type #3 - Tax-Deferred Type #4 - Tax-sheltered Gifts Borrowed Money Gain on Home Sales IRA Rollovers Inheritances Life Insurance Proceeds Property Settlements Child Support Payments Money Recovered For Personal Injuries Workers Compensation Payments Disability Payments Tax Refunds Municipal Bond Interest Vacation Home Rental Children’s Wages Children’s Investment Income Scholarships Budgeting Rule #1: Expenses - 60% Rule #2: Taxes - 20% Rule #3: Savings - 10% Rule #4: Education - 10% Rule #5: Keep Your Benefits Cash Lifestyle Emergency Funds Savings as Deferred Investing How To Save Programmed Savings Tax Savings Joint vs. Separate Returns Purchase of Assets Acquisition Stay Liquid - Be Able To Get Your Money Back Grow - Make Money on Your Money Shelter - Get Tax Benefits Build - Don’t Spend Your Benefits Avoid Linking - Each Investment Must Stand On Its Own Analyze - Investigate the Investment Assets Management Rule #1 - Develop Cash Flow Rule #2 - Learn To Negotiate Rule #3 - Manage Risk Investment Loss Liability Poor Health Premature Death Rule #4 - Diversify Rule #5 - Monitor Assets Rule #6 - Use Systems Taxes & Investment Economics Deductions Now, Taxes Later, or Maybe Never Accelerate Deductions Taxes Charitable Contributions Medical Expenses Miscellaneous Expenses Business Expenses Leverage Chapter 3 - Preservation of Wealth Four Obstacles to Preservation Spending Habits Track Your Spending Income Expenditures Living Expenses Fixed Variable Credit Card Payments The Bottom Line Converting a Minus Into a Plus Build in Savings Adjustments Designing a Budget What Are You Worth? Inventory Assets Cash Personal Property Investments List Liabilities Analyze Net Worth Wasting Assets Liquidity Diversification Cash Reserve Ignorance Taking Control Planning Responsibility Delegation Asset Allocation - Risk & Return Inflation Taxes Tax Planning Tactics Chapter 4 - Deferral Section 1031 “Like-Kind” Exchanges Exchange Advantage Importance of Deferral Three Elements Exchange Requirement Two-Party Exchanges Multi-Party Exchanges Alderson Baird Delayed Exchanges Qualified Property Requirement Like-Kind Requirement Rules of Boot Related Party Exchanges Definition of Related Party Exceptions to the Two-Year Rule Contractual Protection Transactions Between A Partner & Partnership Foreign Real Property Exchanges Qualified §1031 Exchange of Personal Property Repealed Requirements for Personal Property - Prior to 2018 Like-Kind or Like-Class Like-Kind Personal Property - Identical Like Class Personal Property - General Asset or Product Class Five, Four, Then Six Digit Product Classes Other Personal Property Multiple Asset Exchanges Exchange Groups Aggregation & Allocation Delayed (Deferred) Exchange Regulations Deferred (Delayed) Exchange Definition Identification Requirements Identification & Exchange Periods Application of §7503 Method of Identification Property Description Incidental Property - 15% Rule Revocation Substantial Receipt Multiple Replacement Properties Actual & Constructive Receipt Rule Four Safe Harbors Safe Harbor #1 - Security Safe Harbor #2 - Escrow Accounts & Trusts Disqualified Person Who Is An Agent? Safe Harbor #3 - Qualified Intermediary Who Is A Qualified Intermediary? Direct Deeding Assignment Simultaneous Exchanges Safe Harbor #4 - Interest Interest Reporting - §468B(g) Restrictions On Rights to Money & Other Property - “g(6)” Limitations Outside Transfers of Money or Other Property Exchanges of Partnership Interests Effective Date of Partnership Provisions Retirement Plans Designing Your Retirement Sources of Retirement Income Qualified Corporate Programs Defined Contribution Plans Profit Sharing Plan Money Purchase Pension Plan Stock Bonus Plan Employee Stock Ownership Plan 401(k) Plan Defined Benefit Defined Benefit Pension Annuity Plan SIMPLE Plans Self-Employed Plans Individual Retirement Accounts Penalty-Free Withdrawals Roth IRA - §408A Tax-Deferred Annuities Mechanics Types of Deferred Annuity Fixed Annuity Variable Annuity Minimum Investment & Charges Simplified Employee Pension (SEP) Plan Investment Assets Matching Income to Expenditures Participant Loan Regulations Additional Loan Requirements DOL Regulations Installment Sales Requirements Late Election Out of Installment Method Formula Mortgage in Excess of Basis Recapture Dealers At Risk Rule Application Nonrecourse Financing Qualified Nonrecourse Financing Qualified Persons Deferred Compensation Options Chapter 5 - Reduction Tax Credits Work Opportunity Tax Credit (WOTC) – §51 Computation Welfare-to-Work & Work Opportunity Credits Merged Certification Trap Research Tax Credit - §41 Alternative Simplified Credit Relation to §174 - Repealed Rehabilitation Tax Credit - §47 Credit Rates Residential vs. Nonresidential External Wall Requirement Basis Reduction Low Income Housing Credit - §42 Amount of Expenditure Set Aside Requirement Qualifying Units Gross Rent Limitation - 30% Section 8 Assistance Exclusion Recapture of Credit 30-Year Rule State Credit Ceiling AGI Limitation Child & Dependent Care Credit - §21 Eligibility Employment Related Expenses Qualifying Out-of-the-home Expenses Payments to Relatives Allowable Amount Identification of Provider Estimated Taxes General Rule Annualized Method Cash-Saving Strategies Underpayment Cautions Tax Refund Trap Basic Deductions Interest Personal Interest – Repealed (Gone Long Ago) Investment Interest Prepaid Interest Points Huntsman Case Prepayment Penalty Interest on Real Estate Rental Property Home Owners Automobile Deductions Employee Automobile Deductions Business/Personal Proration Actual Cost Method Standard Mileage Rate Limitations on Standard Mileage Method Must Be an Individual Switching Methods Claiming Deductions Records Mileage Records Depreciation Traps Percentage Test Depreciation “Recapture” Depreciation Limits for Autos Leasing Restrictions Mileage Allowance for Leased Autos First-year Expensing - §179 Commuting - Local Business Transportation Regular/Irregular Rule - R.R. 90-23 Temporary Work Site Definition Reserve Units Reimbursements Temporary Work Outside Metropolitan Area - R. R. 99-7 Business Entertainment Prior to 2018 Former Directly Related Test Former Associated Test Statutory Exceptions - §274(e) Food and Beverages for Employees Expenses Treated as Compensation Reimbursed Expenses Recreational Expenses for Employees Employee, Stockholder, and Business Meetings Trade Association Meetings Items Available to the Public Entertainment Sold to Customers Expenses Includible in Income of Non-employees Depreciation & Cost Recovery - §167 & §168 Personal Property MACRS MACRS Elections Straight-line 150% Declining Balance Bonus (or Additional First-year) Depreciation - §168(k) Qualified Property - §168(k)(2) Nonqualified Property - §168(k)(2) MACRS Conventions Mid-quarter Convention Exception Election to Expense Assets - §179 Income Limitation Carryover Deduction Reduction Employee Restriction Recapture - §1245 Net Operating Losses - §172 Creation of an NOL Individual NOLs Carryovers Farming Corporate NOLs Further Limitations Tax Breaks for Nonitemizers Adjustments Credits Amended Returns Audit Avoidance Safest Amendments Not-So-Safe Amendments Chapter 6 - Income Splitting Using Progressive Tax Rates Splitting Income Among Group Members Wealth Allocation Major Formats Unincorporated Business Deductible Business Expenses Home-Office Deduction Requirements - §280A Non-Exclusive Use Exceptions Income Limitation Home Office Deduction Expansion Analysis Square Footage Safe Harbor - R.P. 2013-13 Retirement Plans Hiring Your Children Hiring Your Spouse Travel Expenses Casualty Losses Bad Debts Self-Employment Tax Incorporation “C” or Regular Corporation Planning Considerations When to Incorporate Formation Cash for Stock Property for Stock Stock for Services Stock for Debt Repeal of the “General Utilities” Doctrine Corporate Assets Leasing Lessor Gift & Leaseback Sale & Leaseback “S” Corporation Single Taxation S Corporation Return Planning Considerations Tax Advantages Formation Corporations That Qualify Income-Splitting Estimated Tax Payments Family Partnership Partner’s Distributive Share Partnership Return Schedule K-1 (Form 1065) Family Partnerships Family Members Capital Children as Partners Earned Income Gift of Capital Interest Custodianship & Children Taxation Kiddie Tax - §1(g) Income-Shifting Investments US Savings Bonds Municipal Bonds Growth Stock Real Estate Child Care & Education Nursery School & Day Care - §21 Special Schools Credit Plus Special School Expenses Employer Dependent Care Program - §129 Education Savings Bonds - §135 Notice 90-7 Interest on Education Loans - §221 Buying an Off-campus House Status as Second Home Status as Rental Property Gifting Gain for Education Expenses Gifts Gifts by Check Facts Holding Interest Free Loans De Minimis Exception Special Rule for Gift Loans Chapter 7 - Elimination $500,000 Home Sale Exclusion - §121 Two-Year Ownership & Use Requirements Tacking of Prior Holding Period Vacant Land Mixed Business & Residence Use Prorata Exception Safe Harbor Regulations Change in Place of Employment Health Unforeseen Circumstances Use of Old §1034 & §121 - Gone Long Ago Limitations on Exclusion Renting to Parents Parent’s Benefits Children’s Benefits Municipal Bonds Tax-Exempt Interest on Qualified State or Local Obligations Reporting Private Activity Bonds Divorce & Separation Settlements Pre-2019 Alimony Child Support Property Division Dependency Exemption Gifts & Inheritances Basis of Gift FMV Less Than Donor’s Adjusted Basis FMV More Than Donor’s Adjusted Basis Holding Period Income from Property Given to a Child Life Insurance Proceeds Not Received in Installments Proceeds Received in Installments Fringe Benefits Prizes & Awards - §74(b) Group Life Insurance Premiums - §79 Table I Accident and Health Plans - §106 & §105 Meals & Lodging - §119 Cafeteria Plans - §125 Educational Assistance Program - §127 Dependent Care Assistance - §129 Reporting Requirements for Dependent Care Programs Cash Reimbursement Plans In-kind Assistance Section 132 No Additional Cost Services - §132(a) & (b) Qualified Employee Discounts - §132(c) Services - §132(c)(1) Property - §132(c)(2) & (4) Working Condition Fringe Benefits - §132(d) De Minimis Fringe Benefits - §132(e) Spousal Insurance Transportation Fringe Benefits - §132(f) Moving Expense Reimbursements - §132(a)(6) Retirement Planning Services - §132(a)(7) On-premise Athletic Facilities - §132(j) Nondiscrimination Under §132 Taxation & Valuation of Benefits Valuation Provisions Leased Cars Purchased Cars Fleet-Average Rule Cents-Per-Mile Valuation Commuting Valuation Rule Chauffeur Services Eating Facilities Meal Subsidy Rule ERISA Compliance Welfare Plans Additional Requirements Employee Expense Reimbursement Unreimbursed Employee Expenses Reimbursed Employee Expenses Accountable Plans Business Connection - Rule #1 Reasonable Period of Time - Rule #2 Fixed Date Safe Harbor - #1 Period Statement Safe Harbor - #2 Adequate Accounting - Rule #3 Per Diem Allowance Arrangements Federal Per Diem Rate Related Employer Restriction Reporting Per Diem Allowances Reimbursement Not More Than Federal Rate Reimbursement More Than Federal Rate Nonaccountable Plans Fixed & Variable Rate (FAVR) Allowances - R.P. 90-34 Elements Periodic Fixed Payment Periodic Variable Payment Limitations Record keeping Social Security Taxation Earnings Record Payments Exempt from Social Security Social Security Checkup Form SSA-7004 Form SSA-7050 Chapter 8 - Asset Protection Why Asset Protection? Situations That Create Danger Sources of Lawsuits Types of Liability Basic Protection Concepts Types of Creditors Evading Creditors Fraudulent Transfers Badges of Fraud Statute of Limitations Criminal Penalties Permissible Asset Transfers Asset Protection Goals Preparation Insurance Homeowners Insurance Automobile Insurance Disability Insurance Life Insurance Life Insurance Trust Buy-Sell Agreements Definition Asset Protection Aspects of Common Entities Individual Ownership Sole Proprietorship Corporate C Corporation No Pass-Through The S Corporation - §1361 Trusts Types of Trusts Revocable Trust Land Trusts Irrevocable Trusts Testamentary Trust Business Trusts Foreign Trusts - §679 Asset Protection Trusts - APTs Foreign Jurisdictions Alternatives Income Taxation Estate & Gift Tax Creditor Protection Family Trusts Medicaid Trust Grantor Retained Income Trust Co-Tenancy Tenancy in Common Varying Percentages No Survivorship Joint Tenancy with Right of Survivorship Equal Percentages Tenants by the Entirety Right of Partition Partnership Family Partnerships Charging Orders Phantom Income to Creditor Tax Issues Estate Savings Income Tax Savings Limited Liability Company Retirement Plan Retirement Fund Protection in Bankruptcy Custodianship Estate Divorce Premarital Agreements Uniform Premarital Act - The California Example Permitted Items of Agreement Unenforceable Items Retirement Equity Act of 1984 Benefits of a Premarital Agreement Post-Nuptial Agreements Chapter 9 - Estate Planning Build, Preserve & Distribute Legal Documents Estate Planning Team Attorney Accountant Insurance Agents Financial Planner Estate Administration Probate Court Executor Internal Revenue Service (IRS) Trustee Family Members Things to Be Done When Death Occurs Estate Planning Techniques & Devices Transfers within Probate Disposition of Property without a Will Disposition of Property with a Will Transfers Outside Probate Joint Tenancy with Right of Survivorship Tenancy in Common Retirement Plan & Individual Retirement Accounts Life Insurance Gifts Payable on Death Accounts (POD) Transfers Using a Trust Special Planning Tools Spending Annual Gift Tax Exclusion Applicable Exclusion Amount Spousal Portability of Unused Exemption Amount Unlimited Marital Deduction Installment Payment of Estate Taxes - §6166 Private Annuities Regs Restrict Private Annuity Tax Benefits Installment Sale to Family Member Self-Canceling Installment Notes Irrevocable Life Insurance Trust Special Valuation of Farms and Businesses - §2032A Crummey Trusts Charitable Remainder Trusts Minor Trusts Family Limited Partnerships Grantor Retained Income Trusts Qualified Personal Residence Trusts (QPRTs) Grantor Retained Annuity Trusts (GRATs) Grantor Retained Unitrusts (GRUTs) Buy-Sell Agreements Estate Planning Facts Family Property Domicile Objectives Existing Estate Plan Chapter 10 - Estate & Gift Taxes Federal Estate Tax Persons Subject to Federal Estate Tax Applicable Exemption (or Exclusion) Amount Spousal Portability of Unused Exemption Amount - §2010(c)(2) Estate Tax Rates Progressive or Flat Rate State Inheritance Tax State Death Tax Credit Turns into Deduction – §2011 & §2058 Taxable Estate - §2051 Gross Estate - §2031 Owned Property - §2033 Interests Terminating At Death - Life Estates & Joint Tenancies Interests Created After Death Remainder Interests Dower & Curtsey - §2034 Community Property Comparison Gifts within Three Years of Death - §2035 Transfers from Revocable Trusts Retained Life Interest - §2036 Retained Voting Rights Lifetime Transfers With Reversionary Interests - §2037 Revocable Transfers - §2038 Annuities - §2039 Joint Interests - §2040 Qualified Joint Interests Between Spouses - §2040(b) Powers of Appointment - §2041 Ascertainable Standard - The Safe Harbor Limitation 5/5 Power Life Insurance - §2042 Incidents of Ownership Community Property Issue Deductions from Gross Estate Estate Expenses & Claims - §2053 Inclusion of Administrative Expenses on Non-Probate Assets Casualty & Theft Losses during Administration - §2054 Charitable Transfers - §2055 (§170 & §2522) Immediate Contributions Split-Interest Contributions Charitable Remainder Trusts Charitable Lead Trusts Insurance Related Contributions Unlimited Marital Deduction - §2056 Requirements Net Value Rule Non-Citizen Spouse Qualified Domestic Trust Gifts to Non-Citizen Spouses Valuation IRS Valuation Explanation - §7517 Alternate Valuation - §2032 Special Valuation - §2032A Estate Tax Return & Payment - §6018 Installment Payment of Federal Estate Taxes - §6166 Computation Eligibility & Court Supervision Closely Held Business Acceleration of Payment Tax Basis for Estate Assets - §1014 Community Property Cost Basis GST Tax - §2601 Predeceased Parent Exception Exemption Allocation Retroactive Allocation Gift Taxes - §2501 to §2524 Gift Tax Computation Calculation Steps Applicable Exemption Amount for Gift Tax - §2505 Application Entity Rule Valuation Real Property Stocks & Bonds Annuities, Life Estates, Terms for Years, Remainders, & Reversions Split Gifts - §2513 Community Property States Annual Exclusion Per Donee/Per Year Gifts in Excess of the Annual Exclusion Gifts Within the Annual Exclusion Gifts within 3 Years of Death Uniform Gifts to Minors Act Exception for Minor’s Trusts - §2503(b) & (c) Medical & Tuition Exclusion - §2503(e) Qualifying Transfers Interest-Free or Below-Market Loans Gift Tax Marital Deduction Nondeductible Terminable Interests Gift Tax Charitable Deduction Partial Interests Selecting Gift Property Gift Advantages Gift Disadvantages Gift Tax Returns Inclusion of Gifts in the Estate Shifting Income & Gain Gifts before Sale Transfers into Trust Prior to Sale Installment Obligations Transfer to Obligor at Death Income in Respect of a Decedent Reporting of Foreign Gifts - §6039(f) Chapter 11 - Wills & Probate What Is A Will? Provisions & Requirements Specific & General Bequests Residual Bequests Conditional Bequests Executor Guardian Types of Wills Title Implications Individual Joint Tenancy Tenants in Common Tenants by the Entirety Community Property Tax Basis Advantage Untitled Assets Changes to a Will Advantages of a Will Intestate Succession Periodic Review Continuing Business Operations Simple Will Probate Advantages Disadvantages Probate Avoidance Joint Tenancy Community Property Totten Trust Accounts Life Insurance & Employee Benefits Living Trusts Chapter 12 - Trusts What is a Trust? Why a Trust? Types of Trusts Common Elements Revocable Trust Irrevocable Trusts Testamentary Trust Foreign Trusts - §679 Family Trusts Medicaid Trust Living Trust Reversion Advantages of a Living Trust Disadvantages Priority Pour-Over Will Trust Taxation Income Tax Grantor Trusts - §671 to §678 Grantor Retained Income Trust Revocable Trusts Included in Estate - §646 & §2652(b)(1) Election for Income Tax Purposes Irrevocable Trust Taxation Throwback Rules Capital Gains Deduction of Estate Planning Expenses Deductibility of Death Expenses Gift Tax Estate Tax Unlimited Marital Deduction Outright to Spouse Marital Deduction Trust Qualified Terminable Interest Property (QTIP) Trust “A-B” Format “A-B-C” (QTIP) Format Valuation & Tax Basis Alternate Valuation Fundamental Provisions - Revocable Living Trust Identification Clause Recital Clause Property Transfer Clause Income & Principal Clause Revocation & Amendment Clause Trustee Clause Trustee’s Acceptance Choice of a Trustee Factors for Corporate Trustees Factors for Individual Trustees Trust Termination Clause Chapter 13 - Entities & Title Basic Entity Formats Individual & Sole Proprietorship Marital Property Timing & Domicile Corporate Categories of C Corporations Personal Holding Company - §541 Attribution Rules Penalty Tax Regular C Corporation Corporate Tax Rate No Pass-Through Getting Money Out of the C Corporation Passive Loss Restrictions Partnership vs. Corporation Personal Service Corporation - §269A S Corporation - §1361 Minors as Shareholders Bequests & Estate Ownership Trusts as Shareholders S Corporation Assets Built-In Gains Tax - §1374 Incorporation of a Farm Land Partnership Advantage Leasebacks Trusts Title Holding Business Trusts Co-Tenancy Taxation Percentage Interests Partition Partnership Partnership Taxation Allocation of Income & Deduction Partnership Recapitalization Two Class Format Valuation Guaranteed Payment Control & Management Estate Issues Family Partnerships Estate Savings Income Tax Savings Family Partnership Requirements Recognizing a Partner Control Transferability Donee as a Partner Trusts as Partners Minor as a Partner Purchased Interests Capital Interest in the Partnership Capital as a Material Income-Producing Item Source of Capital Family Partnerships Not Within §704(e) Real Estate Family Partnerships Business Family Partnerships Structuring the Family Partnership Limited Liability Company Outside Basis & Debt Share Advantage Substantial Economic Effect Rules Discharge of Indebtedness Income Suggested Uses Professional Firms Joint Ventures Substitute for Family Limited Partnership Retirement Plan Employer Costs Profit-Sharing Plan Money Purchase Pension Plan Defined Benefit Pension Plan Custodianship Estate Chapter 14 - Life Insurance, Annuities & Buy-Sell Agreements Purpose Tax Overview Income Tax Transfer for Value Rule Employee Death Benefit - §101(b) (Repealed) Premiums Lifetime Benefits Section 72 Estate Taxes - §2042 & §2035(a) Ownership Gift Taxes Community Property Gift Danger Types of Life Insurance Term Insurance Whole Life (Permanent) Insurance Straight Life v. Limited Payment Modified v. Preferred Endowment Insurance Universal Life Charges Premium Payment Variable life Investment Accounts Taxation Survivor Life Single Premium Whole Life Dividends Life Insurance Trust Considerations Annuities Deferred Annuity Private Annuity Unsecured Promise Regulations Restrict Private Annuity Income Buy-Sell Agreements Definition Contractual Format Funding Life Insurance Funding Term vs. Whole Life Policy Ownership & Premium Payment Entity & Cross-Purchase Agreements Tax Consequences - Cross-Purchase Agreements Non-Deductible Premiums No Dividend Danger Tax Consequences - Entity Purchase Agreements Non-Deductible Premiums Dividend Danger - §302 Exception to Dividend Treatment Constructive Ownership (Attribution) Rules “Estate/Beneficiary” Rule “Family/Trust/Corporation” Rule No Gain on Sale Estate Tax Valuation Using the Buy-Sell Agreement to Set Value Enforcement of Contract Price Purchase Price & Terms Valuation Community Property Professional Corporations Marketability Problems Controlled Disposition S Corporations Sole Shareholder Planning Complete Liquidations Alternative Dispositions Use of Life Insurance Estate Valuation One-Way Buy-Outs Chapter 15 - Special Business Issues Business Valuation Relevant Facts Revenue Ruling 59-60 Tangible Assets Special Real Estate Election - §2032A Limitations Related Party Cash Lease Intangible Assets & Goodwill R.R. 68-609 Land Subject To Conservation Easement - §2032A(c)(8) Family Member Indirect Ownership of Land Qualified Conservation Easement Qualified Real Property Interest Qualified Organization Conservation Purpose No Additional Income Tax Deduction Valuation Discounts Minority Interests Special Valuation Plus Minority Discount Fractional Interests Lack of Marketability Swing Vote Premium Buy-Sell Agreements Redemptions Under §303 Requirements Corporate Accumulation For §303 Redemption Accumulation in Anticipation of Shareholder’s Death Death of a Spouse Bypass Trust Lifetime Dispositions Stock Redemptions Under §302 Substantially Disproportionate Redemption - 80/50 Rule Redemptions Not Essentially Equivalent to a Dividend Complete Redemptions Constructive Ownership - §318 Double Attribution Stock Attribution in Complete Redemptions Stock Recapitalization Section 306 Taint Deferred Compensation Agreements Installment Payment of Federal Estate Taxes - §6166 Computation Eligibility & Court Supervision Closely Held Business Acceleration of Payment Chapter 16 - Estate Freeze Rules Application Corporations & Partnerships - §2701 Definitions Member of the Family Applicable Family Member Applicable Retained Interest Control Exceptions To §2701 Zero Value Rule Qualified Payment Exception to Zero Value Rule Valuation of Qualified Payments - Lowest Value Rule Cumulative but Unpaid Distributions - Compounding Rules Taxable Events Amount of Increase Limitation Applicable Percentage Transfer Tax Adjustment Election into Qualified Payment Treatment Election Out of Qualified Payment Treatment Minimum Valuation of a Junior Interest Definitions Junior Equity Interest Equity Interest Value of Other Rights Capital Contributions, Redemptions, & Recapitalizations Attribution Rules Corporation Partnership Estate & Trust Siblings & Lineal Descendants Transfer Tax Adjustments Splitting Retained Interests Subtraction Method Three-Step Computation Valuation Adjustment Transfers of Interests in Trust - §2702 Definitions Applicable Family Member Member of the Family Transfer in Trust Term Interest Retained Zero Value Rule Qualified Interest Exceptions to §2702 Incomplete Gift Term Interests Successive v. Concurrent Leasehold Joint Purchases Term Interests in Tangible Property Transfers of Interest in Portion of Trust Buy-Sell Agreements & Options - §2703 Exceptions to §2703 Arm’s Length Bargain Substantial Modifications Exceptions Lapsing Rights & Restrictions - §2704 Definitions Member of the Family Lapse Voting Right Liquidation Right Control Amount of Transfer Restrictions on Liquidations Disregarded Attribution Rules Chapter 17 - Elderly & Disabled Planning Managing the Estate Joint Tenancy Conservatorship Durable Power Revocable Living Trust Catastrophic illness Medicare Medicaid Countable Assets Non-Countable Assets Personal Residence Gifting the Residence - General Rule Exceptions Inaccessible Assets Gifts Spousal Transfers Spousal Allowance Medicaid Trusts Limited Trust Exceptions Criminalization of Medicaid Asset Transfers Private Insurance Health Care Decisions Supplemental Security Income Income Unearned Income Earned Income Exempt Income Assets Countable Assets Non-Countable Assets Disability Benefits Blind Kidney Disease AIDS Chapter 18 - Post-Mortem Planning & Tax Return Requirements After Death Planning Alternate Valuation Election Special Use Valuation Election to Defer Payment Final Medical Expenses Administration Expenses QTIP Election Disclaimers Federal Returns Form 1040 - Decedent’s Income Tax Form 1041 - Estate’s Income Tax Form 706 - Decedent’s Estate Tax Decedent’s Estate Tax - Form 706 Filing Requirements Paying the Estate Tax Section 6161 Section 6166 Section 6163 Overview of Form 706 Definitions Preparing the Form 706 Form 706, Part 1, Page 1 - Decedent & Executor Form 706, Part 3, Page 2 - Elections by the Executor Form 706, Part 4, Pages 2 & 3 - General Information Schedule A, Page 5 - Real Estate Schedule A-1, Pages 6 through 9 - Section 2032A Valuation Schedule B, Page 10 - Stocks and Bonds Schedule C, Page 11 - Mortgages, Notes, and Cash Schedule D, Page 12 - Insurance on Decedent’s Life Schedule E, Page 13 - Jointly Owned Property Schedule F, Page 14 - Other Miscellaneous Property Schedule G, Page 15 - Transfers During Decedent’s Life Schedule H, Page 15 - Powers of Appointment Schedule I, Page 16 - Annuities Schedule J, Page 17 - Funeral and Administration Expenses Schedule K, Page 18 - Debts of Decedent, and Mortgages and Liens Schedule L, Page 19 - Net Losses During Administration and Expenses Incurred in Administering Property Not Subject to Claims Schedule M, Page 20 - Bequests to Surviving Spouse Schedule O, Page 21 - Charitable Gifts and Bequests Schedule P, Page 22 - Credit for Foreign Death Taxes Schedule Q, Page 22 - Credit for Tax on Prior Transfers Schedules R & R-1, Pages 23 thru 27 - Generation-Skipping Transfer Tax Old Schedule T Gone - Qualified Family-Owned Business Interest Schedule U, Page 28 - Qualified Conservation Easement Exclusion Form 706, Part 5, Page 3 - Recapitulation Form 706, Part 6, Page 4 - Portability of Deceased Spousal Unused Exclusion (DSUE) Form 706, Part 2, Page 1 - Tax Computation Schedule PC, Pages 29 - 31 - Protective Claim for Refund Discharge from Personal Liability Estate Income Tax Return - Form 1041 Filing Requirements Schedule K-1 Tax Computation Exemption Deduction Contributions Statute of Limitations Accounting Methods Taxable Year Double, Split & Solo Deductions Decedent’s Final Income Tax Return - Form 1040 Preceding Year Return Filing Requirements Refund Form 1310 Joint Return with Surviving Spouse Request for Prompt Assessment Included Income Partnership Income S Corporation Income Self-Employment Income Community Income Interest & Dividend Income Exemptions & Deductions Medical Expenses Election for Decedent’s Expenses Making the Election AGI Limit Medical Expenses Not Paid By Estate Insurance Reimbursements Deduction for Losses At-Risk Loss Limits Passive Activity Rules Gift Tax Return - Form 709 Penalties Filing Extension of Time to File Extension of Time to Pay Split Gifts Special Applications & Traps Bargain Sales Below Market Loans Exception Net Gifts Promises to Make a Gift Checks Stock Certificates Promissory Notes Powers of Appointment Glossary |
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The Charitable Payraise- A Strategy for Better Retirements and Lasting Legacies (Video) (1 Hrs)