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| Author : | Danny C Santucci, JD |
| Course Length : | Pages: 319 ||| Word Count: 17,1353 ||| Review Questions: 120 ||| Final Exam Questions: 120 |
| CPE Credits : | 24.0 |
| IRS Credits : | 24 |
| Price : | $145.95 |
| 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 109 |
| Overview : |
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| Description : |
While the nuclear family remains the center point of society, today it is under tremendous economic and social pressure. This course is designed to cover “hot” topics that have a direct impact on the practitioner who represents any client with family issues. The emphasis is on using tax solutions to ease family economic concerns permitting the practitioner to be a real tax hero. |
| Usage Rank : | 24643 |
| Release : | 2025 |
| Version : | 1.0 |
| Prerequisites : | General understanding of federal income taxation. |
| Experience Level : | Overview |
| Additional Contents : | Complete, no additional material needed. |
| Additional Links : |
Internal: Corporate Tax Planning Strategies
Internal: Complete Guide to Estate and Gift Taxation
External: Tax information for parents
External: Tax Planning: Strategies, Benefits, and Real-Life Examples
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| Advance Preparation : | None. |
| Delivery Method : | QAS Self Study |
| Intended Participants : | Anyone needing Continuing Professional Education (CPE). |
| Revision Date : | 04-Oct-2025 |
| 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 - 109 |
| Keywords : | Taxes, Family, Tax, Planning, 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 Basic Marital Tax Matters At the start of Chapter 1, participants should identify the following topics for study:
* Joint return * Separate returns * Head of household * Exemptions * Divorce costs * Withholding & estimated tax * Community property states * Ending the community * Living together After reading Chapter 1, participants will be able to:
2. Recognize the continuing importance and requirement of dependency and “qualified child” status for purposes of head of household filing status and joint custody. 3. Determine deductible and nondeductible divorce expenditures, specify the effects of making separate estimated tax payments or joint declarations of estimated tax, and identify the effects of marital agreements and community income. 4. State the effect of living together on filing statuses and dependency citing differences with the married tax rate and other tax rates and cite the argument for attributable income. Chapter 2 Children At the start of Chapter 2, participants should identify the following topics for study:
* Income earned by children * Unearned income of children under 18 * Adoption credit * Child or dependent care credit * Qualifying person * Keeping up a home * Employment-related expenses * Allowable amount & reporting * Dependent care assistance After reading Chapter 2, participants will be able to:
2. Recognize the tests for the §21 dependent care credit and identify qualifications for §129 dependent care assistance. Chapter 3 Education At the start of Chapter 3, participants should identify the following topics for study:
* Educational expense credits * Education savings accounts * Deduction for student loan interest * Qualified tuition programs * Higher education expense deduction * IRA withdrawals for education expenses * Scholarships & fellowships * Educational savings bonds * Educational incentives & financial aid After reading Chapter 3, participants will be able to:
2. Identify the benefits and requirements of §530 education savings accounts and specify the deductible portion of student loan interest payments. 3. Cite the tax and savings benefits of §529 of qualified tuition programs, §117 tax-free scholarship payments, and §135 educational savings bonds. 4. Identify educational incentives and financial aid available to students and parents. Chapter 4 Medical, Charitable & Casualty At the start of Chapter 4, participants should identify the following topics for study:
* Medical deductions * Health savings accounts * Accelerated death benefits * Charitable contributions of cash * Charitable contributions of property * Substantiation * Casualty & theft losses * Deductible & nondeductible losses * Disaster area losses After reading Chapter 4, participants will be able to:
2. Specify variables that impact the deductibility of §170 charitable contributions identifying limitations and substantiation requirements. 3. Determine what constitutes casualty and theft, and specify between business and personal casualties under §165. Chapter 5 Home Sales & Moving Expenses At the start of Chapter 5, participants should identify the following topics for study:
* Rate groups * AMT * Home sales under §121 * Special rules for ownership & use requirements * Prorata exception * 1099-S reporting * Distance & time tests for moving expenses * Deductible moving expenses * Reporting moving expenses After reading Chapter 5, participants will be able to:
2. Determine the key elements of the §121 home sale exclusion and its application, and specify the safe harbor proration provisions associated with the home sale exclusion. 3. Identify the exception to §217 moving expense disallowance and its requirements. Chapter 6 Home Mortgage Interest At the start of Chapter 6, participants should identify the following topics for study:
* Qualified home * Special situations * Points * Mortgage interest statement – Form 1098 * Special rule for cooperative housing * Home acquisition debt * Home equity debt * Mixed-use mortgages * Grandfathered debt After reading Chapter 6, participants will be able to:
2. Recognize the general rule for the tax treatment of points specifying exceptions and identify when a taxpayer will receive a Mortgage Interest Statement – Form 1098. 3. Differentiate home mortgage interest from personal debt and determine what is qualified grandfather debt. Chapter 7 Transfers Incident to Divorce At the start of Chapter 7, participants should identify the following topics for study:
* Premarital agreements * Application of §1031 * Incident to divorce * Property basis * Purchases of residence between spouses * Purchases of business interests between spouses * Selected asset divisions of residence & business interests * Real & personal property * Pension benefits After reading Chapter 7, participants will be able to:
2. Determine the requirements of §1041 stating how it changed the result of U.S. v. Davis regarding interspousal transfers; specify the factors that influence whether a property transfer is “incident to divorce”; and identify the tax treatment of transferring property subject to a debt. 3. Specify the dangers of interspousal purchases including deferred tax liability, determine the effects of purchasing an interest in real property held for investment, and identify related party issues on later sale. 4. Determine the tax consequences of selected asset divisions incident to divorce. Chapter 8 Alimony & Child Support At the start of Chapter 8, participants should identify the following topics for study:
* Alimony requirements of instruments executed after 1984 * Alimony requirements of instruments executed before 1984 * Deducting alimony paid & reporting alimony received * Recapture of alimony for type A & B agreements * Alimony substitution trusts & annuities * Alimony paid by an estate * Child support * COBRA coverage * Qualified medical child support orders After reading Chapter 8, participants will be able to:
2. Specify the types of §71 “divorce or separation instruments” for existing pre-2019 documents, how having an invalid or corrected decree impacts such an instrument, and what can qualify as a payment or be designated not alimony. 3. Define the continuing informational reporting of alimony for pre-2019 decrees based and the collateral effects of the TCJA changes. 4. Specify the tax treatment of child support recognizing events that determine whether a contingency is clearly child-related and identify qualified medical child support orders to make the most of health care coverage plans. Chapter 9 Financial Tax Planning At the start of Chapter 9, 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 9, participants will be able to:
2. Determine the tax consequences of title holding methods specifying ways to hold title to assets and citing the tax benefits and drawbacks of corporations, qualified retirement plans, and trusts. 3. Recognize the income needed at retirement and identify the purpose of savings listing strategies to save. Chapter 10 Building an Estate At the start of Chapter 10, 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 & investment economics * Leverage After reading Chapter 10, participants will be able to:
2. Determine how to budget income into cash and convert income into assets by purchasing investments. 3. Recognize tax-advantaged investments and determine the economic impact of accelerating deductions and postponing tax liability. Chapter 11 Income Splitting At the start of Chapter 11, 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 11, participants will be able to:
2. Identify the benefits and requirements of using a C or an S corporation specifying the taxation of these entities including their ability to split income, and determine §704(e) family partnership savings. 3. Recognize a custodianship's ability to split income with minors and identify the use of §135 educational bonds. Chapter 12 Retirement Plans At the start of Chapter 12, participants should identify the following topics for study:
* Basic requirements of a qualified pension plan * Basic types of corporate plans * Types of defined contribution plans * Self-employed plans – Keogh * Distribution & settlement options of IRAs * Tax-free rollovers for IRAs * Roth IRAs * Simplified employee pension plans (SEPs) * SIMPLE Plans After reading Chapter 12, participants will be able to:
2. Identify the requirements of basic forms of qualified pension plans and their contribution and benefit limits. 3. Determine the requirements of defined contribution and defined benefit retirement plans, specify the impact of requiring employee contributions; and state the requirements for plan terminations. 4. Identify Keogh plans for self-employed persons and the impact of controlled businesses. 5. Specify the requirements of IRAs, SEPs, and SIMPLEs, and tax-free Roth IRAs. Chapter 13 Distributions from Retirement Plans & IRAs At the start of Chapter 13, participants should identify the following topics for study:
* Mandatory basis rule for annuity payments * Nonqualifying lump-sum distributions * Treatment options for lump-sum distributions * Eligible rollover distributions * 20% withholding * Rollover period * Premature distributions * Minimum distribution rules * Making charitable gifts with plan balances After reading Chapter 13, participants will be able to:
2. Cite the key components of rollovers that can be used to reinvest cash or other assets without including the amount in income. 3. Specify the tax consequences of taking premature distributions assisting clients in avoiding the 10% penalty and recognize charitable distributions from plans. Chapter 14 Elderly & Disabled Planning At the start of Chapter 14, 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 14, participants will be able to:
2. Recognize the basic eldercare benefits of Medicare and the possible use of a Medicaid trust and specify how to obtain disability benefits coverage. Chapter 15 Wills & Probate At the start of Chapter 15, 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 15, participants will be able to:
2. Identify the advantages of a properly drafted will, determine the distribution flow of simple wills, and specify the pros and cons of probate proceedings. Chapter 16 Estate Planning At the start of Chapter 16, participants should identify the following topics for study:
* Applicable exclusion amount * Stepped-up basis * Basic estate planning goals * Simple will * Types of trusts * Charitable trusts * Insurance trusts * Family documents * Private annuities After reading Chapter 16, participants will be able to:
2. Identify the benefits and drawbacks of the primary dispositive plans, specify the various types of estate trusts and recall the former advantages and disadvantages of the private annuity. |
| Course Contents : | Chapter 1 - Basic Marital Tax Matters Filing Status Marital Status Unmarried Abandoned Spouse Rule - §7703 Married Same-Sex Marriage Joint Return Citizenship Liability Innocent Spouse Exception Refund Offset Program - §6402 Injured Spouse - Form 8379 Separate Returns Itemized Deductions Medical Expenses Property Tax & Interest State Income Taxes Casualty Loss Separate vs. Joint Dilemma Disadvantages of a Separate Return Advantages of a Separate Return Joint Return After Separate Returns Head of Household Requirements Considered Unmarried Keeping Up a Home Qualifying Person Nonresident Alien Spouse Exemptions Personal Exemptions Spouses Former Spouse Deemed Personal Exemption for Related Incorporating Provisions Dependency Exemptions & Credits Unified Definition of a Qualified Child Four Tests Test #1 - Residency (or Time) & Citizenship Children of Divorced or Separated Parents Test #2 - Relationship Test Test #3 - Age Test Test #4 - Joint Return Restriction Medical Expenses Child-Care Credit Definition of a Qualified Relative $500 Credit for Certain Dependents - §24(h)(4)(A) Final Regulations of Qualifying Relatives - TD 9913 Divorce Costs Tax Advice - §212(3) Fees to Obtain Alimony or Protect Income - §212(1) & (2) Fees to Obtain Property - §1012 & 1016 Nondeductible Expenses Withholding & Estimated Tax Joint Estimated Tax Payments Refunds & Deficiencies Nonresident Alien Spouse Withholding Marital Property Common Law Property Equitable Distribution Community Property Community Property States Transmutation Commingling Income Reporting Spouses with Different Residency Statuses Special Income Rules For Spouses Living Apart - §66(a) & §879 Mandatory Application Earned Income Social Security Benefits Other Income Denial of Community Property Reporting - §66(b) Community Reporting Relief Provisions - §66(c) Ending the Community Annulment Separation Pre-2019 Alimony vs. Community Income Living Together Married v. Unmarried Tax Rate Comparison Sham Divorce Dependency Exemptions Attributable Income Alimony & Property Divisions Chapter 2 - Children Child Tax Credit - §24 Credit Amount Refundable Child Care Credit Amount AMT & Child Tax Credit Qualifying Child Phase-out Maximum Allowable Child Credit Children's Income Expenses Standard Deduction for Dependent Children - §63 “Kiddie” Tax on Unearned (Investment) Income - §1(g) Application, Threshold & Impact of Suspended Rule Definitions AMT Exemption for Children - §59(j) Tax Computation Steps Other "Kiddie Tax' Items Adoption Credit- §23 & §137 Exclusion from Income for Employer Reimbursements Child or Dependent Care Credit - §21 Eligibility Qualifying Person Qualified Child Children of Divorced or Separated Parents Custody Determinative Release of Claim to Exemption - Form 8332 Earned Income Employment Related Expenses Working or Looking for Work Work for Part of the Year Payments While Out Sick Care of a Qualifying Person Schooling Household Services Qualifying Out-of-the-Home Expenses Transportation Payments to Relatives Allowable Amount Reduction for Dependent Care Assistance Reporting Cleaning Services Dependent Care Assistance - §129 Amount of Assistance Requirements 55% Test Reporting Conflict with Dependent Care Chapter 3 - Education Work-Related Educational Expenses - §162 Qualified Individuals Qualifying Education Requirements Exception Temporary Absence Education Required by Employer or by Law Education to Maintain or Improve Skills Nonqualifying Education Education to Meet Minimum Requirements Kersey Case Example Requirements for Teachers Certification in a New State Education to Qualify for a New Trade or Business Bar or CPA Review Course Qualifications for Teachers Deductible Educational Expenses Unclaimed Reimbursement Transportation Expenses Mileage Travel Expenses Cruises & Conventions Meal Expenses Travel as Education Educator Expenses - §62 Education Expense Credits - §25A American Opportunity (former Hope) Tax Credit - §25A(b) Phase Out - §25A(d) Refundable Relationship Eligible Students Eligible Expenses Timing the Credit Eligible Educational Institutions Lifetime Learning Credit - §25A(c) Phase Out - §25A(d)(1) Eligible Students Relationship Timing the Credit Eligible Expenses Eligible Educational Institutions Comparison with American Opportunity (former Hope) Credit Choosing Which Credit To Claim No Double Benefit Dependency Reporting Education Savings Accounts - §530 Contribution Limits Beneficiary Limit Contributor Limit Phased Out of Contribution Excess Contributions Qualified Expenses - §530(b)(2) Homeschool Designated Beneficiary Changing the Designated Beneficiary Eligible Educational Institution Half-time Student Coordination with Other Education Incentives Age 30 Required Distribution Form 1099-Q Reporting Documentation & Further Requirements Rollovers Transfer Because of Divorce Withdrawals When Assets Must be Withdrawn Deduction for Student Loan Interest - §221 Phase-out Qualified Education Loan Related Party Loan Qualified Higher Education Expenses Payment of Expenses Eligible Educational Institution Eligible Student Claiming the Deduction Reporting Cancellation of Certain Student Loans - §108 Death or Disability Other Loan Forgiveness Qualified Tuition Programs - §529 Beneficiary Changing Beneficiaries Family Members Distributions Form 1099-Q Reporting Qualified Higher Education Expenses - §529(e)(3) Computer Equipment & Technology Refunds & Reinvestment Homeschool Eligible Educational Institution Prohibition Against Investment Direction Interaction with HOPE & Lifetime Learning Credit Gift Tax Annual Exclusion Rollovers Between §529 Tuition & ABLE Programs IRA Withdrawals for Education Expenses - §72(t) Employer-Provided Educational Assistance - §127 Scholarships & Fellowships - §117 Qualified Scholarship or Fellowship - §117 Incidental Expenses Degree Candidate Payment for Services Service Academy Cadets Student Loans Cancellation of Student Loan Debt - §108 Qualified Tuition Reduction - §132(h) Educational Savings Bonds - §135 Income Exclusion Limitation MAGI Notice 90-7 Education Expenses Excludable Interest Forms 8818 & 8815 Educational Incentives & Financial Aid FAFSA Independent Student Financial Aid Planning for the Parent Asset Planning Through the High-Income Parent Other Sources of Financial Aid Info Chapter 4 - Medical, Charitable & Casualty Medical Costs - §213 Spouse Separate Returns Community Property States Dependents Adopted Child Children of Divorced or Separated Parents Multiple Support Agreements Decedents Medical Deductions Items Deductible Items Not Deductible Medical Insurance Premiums Meals & Lodging Expenses of Transportation Cosmetic Surgery Permanent Improvements Lifetime Care Advance Payments Reimbursement of Expenses Amounts Deductible Long-term Care Provisions IRA Withdrawals for Certain Medical Expenses Grandfathered Archer Medical Savings Accounts - §220 Health Savings Accounts (HSAs) - §223 Benefits Qualifications High Deductible Health Plan (HDHP) Limits for HDHP Amount of Contribution Enrolled in Medicare Special Rules for Married Couples Establishing an HSA Rollovers Distributions Qualified Medical Expenses Insurance Premiums Record Keeping Prescription Drug Costs Accelerated Death Benefits Terminally Ill Individual Chronically Ill Individual Exclusion Limited Health Insurance For Self-Employed Charitable Contributions - §170 Requirements for Deductibility Qualified Organizations Limitations on Contributions Five-year Carryover Contributions of Cash Benefits Received Benefit Performances Athletic Event Seating Rights Repealed Raffle Tickets, Bingo, Etc. Dues, Fees, or Assessments Contribution of Property Clothing & Household Goods Ordinary Income or Short-term Capital Gain Type Property Exception Capital Gain Type Property Exceptions Conservation Easements Loss Type Property Vehicle Donations Fractional Interests Other Types of Contributions Charitable Distributions from an IRA Substantiation Cash Contributions Contributions Less Than $250 Contributions of $250 or More Payroll Deduction Records Noncash Contributions Deductions of Less Than $250 Additional Records Deductions of At Least $250 But Not More Than $500 Deductions Over $500 But Not Over $5,000 Deductions Over $5,000 Contributions Over $75 Made Partly for Goods or Services Personal Casualty & Theft Losses - §165 Casualty Theft Mislaid or Lost Property Deductible Losses Nondeductible Losses Proof of Loss Amount of Loss Theft Recovered Property Related Expenses Protection Cost Repair & Replacement Costs Allocation for Mixed Use Property Insurance and Other Reimbursements Limitations Disaster Area Losses Unsafe Home Special Residence Rule Loss on Deposits Chapter 5 - Home Sales & Moving Expenses Introduction Capital Gains & Qualified Dividends Rates - §1 28% Rate Group 25% Rate Group - Unrecaptured §1250 Gain 15% (or sometimes 20%) Rate Group - Adjusted Net Capital Gain The Hidden Rate - Net Investment Income Tax - §1411 AMT Small Business Stock Netting Capital Gains & Losses Analysis Home Sales - §121 Exclusion Amount Analysis Reduced Home Sale Exclusion for Nonqualified Use Computation Nonqualified Use Post-May 6, 1997 Depreciation Surviving Spouse Home Sale Exclusion Home Sale Exclusion for Decedent’s Estate Ownership & Use Requirements Special Rules Occasional Absences Tacking of Prior Holding Period Rental of Personal Residence Depreciation Vacant Land Mixed Personal & Business Use of Home Depreciation after May 6, 1997 Divorce Prorata Exception Prorata Clarification Safe Harbor Regulations Change in Place of Employment Health Unforeseen Circumstances Two-Year Requirement Remainder Interests 1099-S Reporting Revenue Procedure 98-20 Moving Expenses - §217 Distance Test Time Test Time Test for Employees Time Test for Self-employment Deductible Expenses Travel Expenses Travel by Car Location of Move Reporting Reimbursements Chapter 6 - Home Mortgage Interest Home Mortgage Categories Special Application Exceptions What Happened to Home Equity Debt? Secured Debt Unsecured Debt Wraparound Mortgage Treating Debt as Unsecured Qualified Home Second Home Divided Use of Home Construction Time-Sharing Married Taxpayers Special Situations Late Payment Charge Prepayment Penalty Sale of Home Prepaid Interest Mortgage Interest Credit Ministers’ & Military Housing Shared Appreciation Mortgage (SAM) Graduated Payment Mortgages (GPM) Mortgage Assistance Payments Ground Rent Redeemable Ground Rent Nonredeemable Ground Rent Reverse Mortgage Loans Refunds of Interest Cooperative Apartment Owner Points General Rule Exception - Fully Deductible Points Service Charges Seller Paid Points Funds Provided Are Less than Points Excess Points Mortgage Ending Early Refinancing Mortgage Interest Statement - Form 1098 Special Rule for Cooperative Housing Cooperative Housing Corporation Debt Secured by Stock Determining Home Mortgage Interest Limits on Home Mortgage Interest Home Acquisition Debt Home Acquisition Debt Limit Refinanced Home Acquisition Debt Mortgage Deemed Used To Buy, Build, or Improve Home Date of the Mortgage Cost of Home or Improvements Substantial Improvement Home Equity Debt Suspended Home Equity Debt Limit Fair Market Value Mixed-Use Mortgages Grandfathered Debt Refinanced Grandfathered Debt Exception Line-of-Credit Mortgage Chapter 7 - Transfers Incident to Divorce Property Rights Marital Property Common Law Property Community Property Equitable Distribution Separate Property Asset Division Principles Premarital Agreements Uses & Benefits Control & Scope Limitations Retirement Equity Act of 1984 Enforceability Requirements Checklist Uniform Premarital Act - The California Example Permitted Items of Agreement Unenforceable Items Property Settlements Section 1041 Application of §1041 U.S. vs. Foreign Spouse Mandatory Scope Property vs. Income Unpaid Income Savings Bonds Receivables Interest Imputed Interest Transfers to a Former Spouse Incident to Divorce Related To Termination Rebuttable Presumption Divorce or Separation Instrument Transfers in Trust Third-Party Transfers Property Basis Gift Variation Passive Activity Loss Property Property Transferred In Trust Basis in U.S. Savings Bonds Negotiated Property Divisions Adjudicated Property Divisions Caselaw General Rule - Immediate & Specific Liabilities Holding Period Notice & Recordkeeping Purchases Between Spouses Residence Home Mortgage Interest Deferral & Exclusion of Gain Business & Investment Property Recapture Section 1031 Exchange Asset Separation Related Parties Two-Year Restriction Foreign Property Form 8824 Spousal Transfers Installment Sale of Assets Selected Asset Divisions Residence Section 121 Home Sales Two-Year Ownership & Use Requirements Special Divorce Rules Tacking of Prior Holding Period Prorata Exception Limitations on Exclusion Installment Obligations Business Interests Corporate Stock Cases & Rulings Section 302 Stock Redemption Recapitalization Partnerships Section 736(a) Payments Effect on Recipient Section 736(b) Payments Effect Exclusions From §736(b) Treatment Liabilities Series of Payments Section 754 Election Insurance Policies Real & Personal Property Classification of Assets Character of Gain or Loss Capital Assets - §1221 Long-Term or Short-Term Installment Sale Net Gain or Loss Treatment of Net Capital Gains Section 1231 Assets Gains & Losses Recapture Of Net Ordinary Losses Ordinary Assets Depreciable Property Recapture on Personal Property Section 1245 Property Treatment of Gain Recapture on Real Property Section 1250 Property Pension Benefits Qualified Domestic Relations Order Taxation of Distributions Deferred v. Present Division of Benefits Deferred Division Arguments Present Division or Alternate Property Arguments Individual Retirement Arrangements IRA Deduction Limit Rollovers Divorce Distributions Amounts Not Rolled Over Retirement Planning After Divorce Social Security Benefits Divorced Spouse Benefits Divorced Widow(er) Benefits Military Pensions Divorced Spouse Benefits Jurisdiction Requirement Disposable Pay Direct Payment Divorced Widow(er) Benefits Social Security Offset Civil Service Pensions Divorced Spouse Benefit Divorced Widow(er) Benefit Railroad Pensions Divorced Spouse Benefit Divorced Widow(er) Benefit Bankruptcy Chapter 8 - Spousal & Child Support Spousal Support & Alimony Pre 2019 Decrees #1 - Divorce or Separation Instrument - (§71(b)(1)(A)) Invalid Decree Amended Instrument Premarital Agreements Voluntary Payments Payments to Remarried Spouse #2 Different Households - (§71(b)(1)(C)) Exception #3 Termination at Death - §71(b)(1)(D)) Substitute Payments #4 Payments Must Be In Cash - (§71(b)(1)) Payments to a Third Party Written Requests, Consents, or Ratifications Payments for Family Residence Taxpayer-Owned Home Spouse-Owned Home Jointly-Owned Home Mortgage Payments on Jointly-Owned Home Taxes & Insurance on Jointly-Owned Home Utilities Rent On Property Owned by a Third Party Payments for Life Insurance Contingent Interest #5 No Designation as Not Alimony - §71(b)(1)(B) #6 Payment Cannot Be Child Support - §71(c)(1) Past Due Child & Spousal Support Payments #7 Joint Return Prohibited 2019 & Later Decrees – No More Alimony Tax Treatment of Alimony Instruments Executed Before 2019 Alimony Paid - Deductible Reporting Alimony Received - Income Alimony as Compensation Recapture of Alimony Exceptions to Recapture Including the Recapture in Income Deducting the Recapture Exceptions Computation Alimony Substitution Trusts & Annuities Annuities Alimony Paid by an Estate Instruments Executed After 2018 Child Support Contingency Relating To the Child Clearly Associated With a Contingency Heller Case Rebuttable Presumptions COBRA Coverage Coverage Termination Notice Election Choice of Coverage Cost Deductibles Qualified Medical Child Support Orders Definition Procedures & Duties Jurisdiction Chapter 9 - 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 10 - 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 11 - 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 12 - Retirement Plans Deferred Compensation Qualified Deferred Compensation Qualified v. Nonqualified Plans Major Benefit Current Deduction Timing of Deductions Part of Total Compensation Compensation Base Salary Reduction Amounts Benefit Planning Corporate Plans Advantages Current Deferred Disadvantages Employee Costs Comparison with IRAs & Keoghs Basic ERISA Provisions ERISA Reporting Requirements Fiduciary Responsibilities Bonding Requirement Prohibited Transactions Additional Restrictions Fiduciary Exceptions Loans Employer Securities Excise Penalty Tax PBGC Insurance Sixty-Month Requirement Recovery Against Employer Termination Proceedings Plans Exempt from PBGC Coverage Basic Requirements of a Qualified Pension Plan Written Plan Communication Trust Requirements Permanency Exclusive Benefit of Employees Highly Compensated Employees Reversion of Trust Assets to Employer Participation & Coverage Age & Service Coverage Percentage Test Ratio Test Average Benefits Test Numerical Coverage Related Employers Vesting Full & Immediate Vesting Minimum Vesting Unified Vesting Nondiscrimination Compliance Contribution & Benefit Limits Defined Benefit Plans (Annual Benefits Limitation) - §415 Defined Contribution Plans (Annual Addition Limitation) - §415 Limits on Deductible Contributions - §404 Assignment & Alienation Miscellaneous Requirements Basic Types of Corporate Plans Defined Benefit Mechanics Defined Benefit Pension Defined Contribution Mechanics Discretion Favorable Circumstances Types of Defined Contribution Plans Profit-Sharing Requirements for a Qualified Profit-Sharing Plan Written Plan Eligibility Deductible Contribution Limit Substantial & Recurrent Rule Money Purchase Pension Cafeteria Compensation Plan Thrift Plan Section 401(k) Plans Death Benefits Defined Benefit Plans Money Purchase Pension & Target Benefit Plans Employee Contributions Non-Deductible Life Insurance in the Qualified Plan Return Universal Life Compare Plan Terminations & Corporate Liquidations 10-Year Rule Lump-Sum Distributions Asset Dispositions IRA Limitations Self-Employed Plans - Keogh Mechanics Contribution Timing Controlled Business General Limitations Effect of Incorporation Design Parity with Corporate Plans Types of Keogh Plans Figuring Retirement Plan Deductions For Self-Employed Self-Employed Rate Determining the Deduction Individual Plans - IRAs Deemed IRA Mechanics Phase-out Special Spousal Participation Rule - §408A(c)(3) Spousal IRA Eligibility Contributions & Deductions Employer Contributions Retirement Vehicles Distribution & Settlement Options Life Annuity Exemption Minimum Distributions Required Minimum Distribution Definitions Required Minimum Distributions During Owner’s Lifetime Sole Beneficiary Spouse Who Is More Than 10 Years Younger Required Minimum Distributions in Year of the Owner's Death Beneficiaries - Distributions after Owner’s Death Estate Tax Deduction Charitable Distributions from an IRA Post-Retirement Tax Treatment of IRA Distributions Income In Respect of a Decedent Estate Tax Consequences Losses on IRA Investments Prohibited Transactions Effect of Disqualification Penalties Borrowing on an Annuity Contract Tax-Free Rollovers Rollover from One IRA to Another Waiting Period Between Rollovers Partial Rollovers Rollovers from Traditional IRAs into Qualified Plans Rollovers of Distributions from Employer Plans Withholding Requirement Waiting Period Between Rollovers Conduit IRAs Keogh Rollovers Direct Rollovers From Retirement Plans to Roth IRAs Rollovers of §457 Plans into Traditional IRAs Rollovers of Traditional IRAs into §457 Plans Rollovers of Traditional IRAs into §403(B) Plans Rollovers from SIMPLE IRAs Roth IRA - §408A Eligibility Contribution Limitation Roth IRAs Only Roth IRAs & Traditional IRAs Conversions Recharacterizations Reconversions Taxation of Distributions No Required Minimum Distributions Simplified Employee Pension Plans (SEPs) Contribution Limits & Taxation SIMPLE Plans SIMPLE IRA Plan Employee Limit Other Qualified Plan Set up Contribution Limits Salary Reduction Contributions Employer Matching Contributions Deduction of Contributions Distributions SIMPLE §401(k) Plan Chapter 13 - Distributions from Retirement Plans & IRAs Annuity Payments - §72 General Rule - Prior Law Exclusion Ratio Investment in Contract (Cost) Expected Return Simplified Alternative Rule - Prior Law Mandatory Basis Rule - Current Law Annuity Benefits Paid Over Two Lives Withholding & Estimated Tax Lump-Sum Distributions Qualified Distributions Nonqualified Distributions Treatment Options 10-Year Averaging Employer Securities - Net Unrealized Appreciation (NUA) Capital Gain Treatment “Grandfather” or Transition Rules Rollovers Eligible Rollover Distributions 20% Withholding Exceptions Direct Rollover Rollover Period Annual Usage Rollover of Noncash Distributions Qualified Domestic Relations Order Rollover Surviving Spouse Rollover Premature Distributions - 10% Penalty Exemptions Death Disability Equal Periodic Payments Total Value & Aggregation Requirement Five-Year Requirement Medical Expenses Qualified Domestic Relations Order Recapture Tax Minimum Distribution Rules Required Beginning Date for Minimum Distributions Minimum Distribution Rules Making Charitable Gifts with Plan Balances Chapter 14 - 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 15 - 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 16 - Estate Planning Unlimited Marital Deduction Outright To Spouse Marital Deduction Trust - §2056 Qualified Terminable Interest Property (QTIP) Trust Applicable Exclusion Amount Spousal Portability of Unused Exemption Amount - §2010(c)(2) Stepped-up Basis - §1014 Basic Estate Planning Goals Primary Dispositive Plans Simple Will Danger for Larger Estates Probate Transfers within Probate Disposition of Property without a Will Transfers outside Probate Assets Not Subject to a Will Assets Subject to a Will Trusts Types of Trusts Living Trusts Testamentary Trusts Revocable & Irrevocable Living “A-B” Revocable Trust Living “A-B-C” (QTIP) Trust Impact of Spousal Portability on Trust B under TUIRJCA Charitable Trusts Charitable Remainder Trusts Charitable Income Trusts Insurance Trusts Family Documents Living Will Property Agreement & Inventory Durable Power Of Attorney Power of Attorney for Health Care Conservatorship Funeral Arrangements Anatomical Gifts Private Annuity? Advantages to the Transferor Disadvantages to the Transferor Advantages to the Transferee Disadvantages to the Transferee Regulations Restrict Private Annuity Income Glossary |
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