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| Author : | Danny C Santucci, JD |
| Course Length : | Pages: 178 ||| Word Count: 85,970 ||| Review Questions: 120 ||| Final Exam Questions: 85 |
| CPE Credits : | 17.0 |
| IRS Credits : | 17 |
| Price : | $127.95 |
| 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 2388 |
| Description : | This presentation integrates federal taxation with retirement planning. The course will examine tax and savings strategies related to determining retirement income needs, 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 the financial aspects of retirement. Designed to improve the quality of services to clients and the profitability of engagements, this program projects the accountant into the world of retirement planning. This course will give the participant practice in analyzing problems, developing solutions, and presenting final personal retirement plans to clients. The emphasis is on practical simplicity in dealing with the self-employed and highly compensated individual. |
| Usage Rank : | 23333 |
| Release : | 2024 |
| Version : | 1.0 |
| Prerequisites : | General understanding of federal income taxation. |
| Experience Level : | Overview |
| Additional Contents : | Complete, no additional material needed. |
| Additional Links : |
Tax Planning Financial Planning for Retirement NW Tax Wealth
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| Advance Preparation : | None. |
| Delivery Method : | QAS Self Study |
| Intended Participants : | Anyone needing Continuing Professional Education (CPE). |
| Revision Date : | 29-Oct-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 - 2388 |
| Keywords : | Taxes, Tax, Financial, Planning, Retirement, 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 and 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 invest-ment planning including necessary self-education, determine the allocation of financial resources among investments to maximize return and recognize the impact of inflation, risk versus return, and basic income taxbasis 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, disallowance of personal property and partnership exchanges, and recognize the use of an intermediary in exchanges. 3. Identify retirement plan design, and list popular methods for providing for retirement. 4. Specify the requirements for an installment sale, identify the application of the at-risk rules, 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 including personal, investment, and prepaid interest. 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 * Child care & 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 Estate Planning At the start of Chapter 8, 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 8, participants will be able to:
2. Identify estate planning goals, recognize the benefits and drawbacks of the primary dispositive plans and specify the various types of estate trusts and family estate documents. Chapter 9 Asset Protection At the start of Chapter 9, 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 & corporate ownership * Asset protection aspects of trusts * Co-tenancy & partnerships * Divorce After reading Chapter 9, 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. |
| 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 - §117 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 - 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 Chapter 9 - 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 Glossary |
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