Table of Contents
CHAPTER 1 FINANCIAL TAX PLANNING1
| Comparing Goals & Purposes | 2 |
| Investment Purposes | 3 |
| Investment Goals | 5 |
| Find Your Place in Time | 6 |
| Review Questions | 7 |
| "Know Thy Investment Self" | 9 |
| Investment Vehicles & Entities | 9 |
| Retirement Now - The Ultimate Objective | 15 |
| Basic Planning Elements | 16 |
| Review Questions | 17 |
CHAPTER 2 BUILDING AN ESTATE19
| Assets, Income & Cash | 19 |
| Income | 20 |
| Review Questions | 26 |
| Budgeting | 33 |
| Review Questions | 36 |
| Cash | 38 |
| Acquisition | 45 |
| Assets | 46 |
| Management | 47 |
| Taxes & Investment Economics | 51 |
| Deductions Now, Taxes Later, or Maybe Never | 51 |
| Leverage | 53 |
| Review Questions | 53 |
CHAPTER 3 PRESERVATION OF WEALTH55
| Four Obstacles to Preservation | 55 |
| Spending Habits | 55 |
| Ignorance | 63 |
| Inflation | 64 |
| Taxes | 65 |
| Review Questions | 67 |
CHAPTER 4 DEFERRAL69
| Section 1031 "Like-Kind" Exchanges | 70 |
| Exchange Advantage | 70 |
| Importance of Deferral | 70 |
| Three Elements | 71 |
| Related Party Exchanges | 79 |
| Foreign Real Property Exchanges | 81 |
| Review Questions | 82 |
| Qualified §1031 Exchange of Personal Property Repealed | 83 |
| Review Questions | 89 |
| Delayed (Deferred) Exchange Regulations | 90 |
| Retirement Plans | 103 |
| Designing Your Retirement | 103 |
| Sources of Retirement Income | 105 |
| Installment Sales | 115 |
| Requirements | 115 |
| Formula | 116 |
| Mortgage in Excess of Basis | 116 |
| Recapture | 118 |
| Dealers | 118 |
| At-Risk Rule | 118 |
| Deferred Compensation | 119 |
| Options | 119 |
| Review Questions | 120 |
CHAPTER 5 REDUCTION123
| Tax Credits | 123 |
| Work Opportunity Tax Credit (WOTC) Expired– §51 | 123 |
| Research Tax Credit - §41 | 124 |
| Rehabilitation Tax Credit - §47 | 126 |
| Low Income Housing Credit - §42 | 126 |
| Child & Dependent Care Credit - §21 | 128 |
| Estimated Taxes | 130 |
| General Rule | 130 |
| Cash-Saving Strategies | 132 |
| Underpayment Cautions | 132 |
| Tax Refund Trap | 133 |
| Review Questions | 133 |
| Basic Deductions | 134 |
| Interest | 134 |
| Automobile Deductions | 137 |
| Review Questions | 142 |
| Commuting - Local Business Transportation | 143 |
| Regular/Irregular Rule - R.R. 90-23 | 143 |
| Temporary Work Outside Metropolitan Area - R. R. 99-7 | 145 |
| Business Entertainment | 145 |
| Prior to 2018 | 146 |
| Statutory Exceptions - §274(e) | 146 |
| Depreciation & Cost Recovery - §167 & §168 | 148 |
| Personal Property | 148 |
| Net Operating Losses - §172 | 153 |
| Creation of an NOL | 153 |
| Individual NOLs | 153 |
| Corporate NOLs | 154 |
| Further Limitations | 154 |
| Tax Breaks for Nonitemizers | 154 |
| Adjustments | 154 |
| Credits | 155 |
| Amended Returns | 155 |
| Audit Avoidance | 155 |
| Safest Amendments | 155 |
| Not-So-Safe Amendments | 156 |
| Review Questions | 157 |
CHAPTER 6 INCOME SPLITTING159
| Using Progressive Tax Rates | 159 |
| Splitting Income Among Group Members | 160 |
| Wealth Allocation | 160 |
| Major Formats | 160 |
| Unincorporated Business | 162 |
| Deductible Business Expenses | 162 |
| Home-Office Deduction | 162 |
| Retirement Plans | 164 |
| Hiring Your Children | 165 |
| Hiring Your Spouse | 165 |
| Travel Expenses | 165 |
| Casualty Losses | 165 |
| Bad Debts | 165 |
| Self-Employment Tax | 165 |
| "C" or Regular Corporation | 166 |
| Planning Considerations | 168 |
| When to Incorporate | 168 |
| Formation | 169 |
| Repeal of the "General Utilities" Doctrine | 170 |
| Review Questions | 171 |
| "S" Corporation | 173 |
| Single Taxation | 173 |
| Planning Considerations | 174 |
| Tax Advantages | 174 |
| Formation | 175 |
| Corporations That Qualify | 175 |
| Income-Splitting | 176 |
| Estimated Tax Payments | 176 |
| Family Partnership | 177 |
| Partner's Distributive Share | 177 |
| Partnership Return | 177 |
| Schedule K-1 (Form 1065) | 178 |
| Family Partnerships | 178 |
| Gift of Capital Interest | 179 |
| Review Questions | 180 |
| Custodianship & Children | 182 |
| Taxation | 182 |
| Child Care & Education | 183 |
| Gifts | 188 |
| Gifts by Check | 188 |
| Interest Free Loans | 189 |
| De Minimis Exception | 190 |
| Special Rule for Gift Loans | 190 |
| Review Questions | 191 |
CHAPTER 7 ELIMINATION193
| $500,000 Home Sale Exclusion - §121 | 193 |
| Two-Year Ownership & Use Requirements | 194 |
| Tacking of Prior Holding Period | 194 |
| Vacant Land | 194 |
| Mixed Business & Residence Use | 195 |
| Prorata Exception | 195 |
| Use of Old §1034 & §121 - Gone Long Ago | 197 |
| Limitations on Exclusion | 198 |
| Renting to Parents | 198 |
| Municipal Bonds | 199 |
| Tax-Exempt Interest on Qualified State or Local Obligations | 199 |
| Private Activity Bonds | 199 |
| Divorce & Separation Settlements | 200 |
| Pre-2019 Alimony | 200 |
| Child Support | 200 |
| Property Division | 201 |
| Dependency Exemption Eliminated | 201 |
| Gifts & Inheritances | 201 |
| Basis of Gift | 201 |
| Holding Period | 202 |
| Income from Property Given to a Child | 202 |
| Life Insurance | 202 |
| Proceeds Not Received in Installments | 202 |
| Proceeds Received in Installments | 203 |
| Fringe Benefits | 203 |
| Prizes & Awards - §74(b) | 203 |
| Group Life Insurance Premiums - §79 | 204 |
| Accident and Health Plans - §106 & §105 | 205 |
| Meals & Lodging - §119 | 205 |
| Cafeteria Plans - §125 | 205 |
| Educational Assistance Program - §127 | 205 |
| Review Questions | 206 |
| Dependent Care Assistance - §129 | 207 |
| Section 132 | 208 |
| Taxation & Valuation of Benefits | 211 |
| Valuation Provisions | 211 |
| Eating Facilities | 213 |
| Meal Subsidy Rule | 213 |
| ERISA Compliance | 213 |
| Employee Expense Reimbursement | 214 |
| Unreimbursed Employee Expenses | 214 |
| Reimbursed Employee Expenses | 215 |
| Fixed & Variable Rate (FAVR) Allowances - R.P. 90-34 | 225 |
| Social Security | 227 |
| Taxation | 227 |
| Earnings Record | 228 |
| Payments Exempt from Social Security | 228 |
| Social Security Checkup | 228 |
| Review Questions | 229 |
CHAPTER 8 ASSET PROTECTION232
| Why Asset Protection? | 233 |
| Situations That Create Danger | 235 |
| Sources of Lawsuits | 236 |
| Types of Liability | 239 |
| Basic Protection Concepts | 239 |
| Review Questions | 242 |
| Types of Creditors | 244 |
| Evading Creditors | 247 |
| Fraudulent Transfers | 247 |
| Badges of Fraud | 249 |
| Statute of Limitations | 252 |
| Criminal Penalties | 252 |
| Permissible Asset Transfers | 253 |
| Asset Protection Goals | 253 |
| Review Questions | 255 |
| Preparation | 256 |
| Insurance | 259 |
| Homeowners Insurance | 259 |
| Automobile Insurance | 260 |
| Disability Insurance | 260 |
| Life Insurance | 260 |
| Life Insurance Trust | 261 |
| Buy-Sell Agreements | 261 |
| Definition | 262 |
| Review Questions | 263 |
| Asset Protection Aspects of Common Entities | 264 |
| Individual Ownership | 264 |
| Corporate | 265 |
| Trusts | 268 |
| Co-Tenancy | 275 |
| Partnership | 278 |
| Limited Liability Company | 280 |
| Retirement Plan | 280 |
| Custodianship | 281 |
| Estate | 282 |
| Divorce | 282 |
| Premarital Agreements | 283 |
| Post-Nuptial Agreements | 286 |
| Review Questions | 286 |
CHAPTER 9 HOW MUCH DO YOU NEED TO RETIRE?289
| Mapping Mechanics | 289 |
| Pitfalls & Myths | 291 |
| Common Pitfalls | 291 |
| Popular Retirement Myths | 293 |
| Review Questions | 297 |
| Defining Retirement | 298 |
| When Do I Want To Retire? | 299 |
| What Kind Of Lifestyle Do I Want? | 301 |
| Do I Want To Move? | 302 |
| Review Questions | 307 |
| Determining Retirement Costs & Income Needs | 308 |
| Developing a Plan | 313 |
| Savings | 316 |
| Assets | 320 |
| Review Questions | 321 |
CHAPTER 10 SOCIAL SECURITY BENEFITS & RETIREMENT PLANNING323
| Will Social Security Be There? | 323 |
| How Social Security Works | 324 |
| Social Security Participants | 324 |
| Social Security Benefits | 325 |
| Retirement Benefits | 325 |
| Review Questions | 334 |
| Direct Deposit | 337 |
| Social Security's Payroll Tax or FICA | 337 |
| Rates | 337 |
| Covered Earnings | 337 |
| Multiple Employers | 338 |
| Covered Employment | 338 |
| Self-Employment | 338 |
| Tax after Retirement | 340 |
| Social Security as a Retirement Planning Element | 340 |
| Total Disability Benefits | 341 |
| Family Members | 341 |
| HIV & AIDS | 342 |
| Children | 342 |
| Qualification | 342 |
| Survivors Benefits | 343 |
| Divorce | 344 |
| Review Questions | 344 |
| Medicare | 346 |
| Who Is Eligible For Hospital Insurance (Part A)? | 346 |
| Who Can Get Medical Insurance (Part B)? | 346 |
| Prescription Drug Coverage (Part D) | 347 |
| How Do You Get Medicare? | 347 |
| What Does Medicare Pay For? | 348 |
| What Medicare Does Not Pay For? | 348 |
| Medigap Insurance | 348 |
| Review Questions | 349 |
CHAPTER 11 RETIREMENT PLANS351
| Deferred Compensation | 351 |
| Qualified Deferred Compensation | 351 |
| Review Questions | 362 |
| Basic Requirements of a Qualified Pension Plan | 364 |
| Basic Types of Corporate Plans | 373 |
| Review Questions | 380 |
| Self-Employed Plans - Keogh | 385 |
| Determining the Deduction | 390 |
| Individual Plans - IRAs | 391 |
| Review Questions | 409 |
| Simplified Employee Pension Plans (SEPs) | 422 |
| SIMPLE Plans | 424 |
| Review Questions | 428 |
CHAPTER 12 DISTRIBUTIONS FROM RETIREMENT PLANS431
| Annuity Payments - §72 | 432 |
| General Rule - Prior Law | 432 |
| Simplified Alternative Rule - Prior Law | 434 |
| Mandatory Basis Rule - Current Law | 435 |
| Withholding & Estimated Tax | 436 |
| Lump-Sum Distributions | 436 |
| Qualified Distributions | 436 |
| Nonqualified Distributions | 437 |
| Treatment Options for LSDs | 439 |
| Review Questions | 443 |
| Rollovers | 444 |
| Eligible Rollover Distributions | 444 |
| 20% Withholding | 445 |
| Rollover Period | 448 |
| Rollover of Noncash Distributions | 451 |
| Qualified Domestic Relations Order Rollover | 453 |
| Surviving Spouse Rollover | 453 |
| Premature Distributions - 10% Penalty | 455 |
| Exemptions | 455 |
| Recapture Tax | 460 |
| Minimum Distribution Rules | 461 |
| Required Beginning Date for Minimum Distributions | 461 |
| Minimum Distribution Rules | 463 |
| Making Charitable Gifts with Plan Balances | 464 |
| Review Questions | 465 |
CHAPTER 13 NONQUALIFIED PLANS468
| Postponement of Income | 468 |
| Advantages | 469 |
| Purposes & Benefits | 470 |
| Benefit Formula | 470 |
| Contractual Arrangement | 471 |
| Tax Status | 471 |
| Constructive Receipt | 473 |
| Economic Benefit | 475 |
| Unfunded Bare Contractual Promise Plan - Type I | 479 |
| Review Questions | 482 |
| Funded Company Account Plan - Type II | 483 |
| Segregated Asset Plan - Type III | 487 |
| Tax Consequences | 490 |
| Accounting | 493 |
| Estate Planning Considerations | 494 |
| Withholding, Social Security & IRAs | 496 |
| Review Questions | 496 |
CHAPTER 14 LIFE INSURANCE, ANNUITIES & BUY-SELL AGREEMENTS499
| Purpose | 499 |
| Tax Overview | 501 |
| Income Tax | 501 |
| Estate Taxes - §2042 & §2035(a) | 504 |
| Gift Taxes | 505 |
| Types of Life Insurance | 505 |
| Term Insurance | 505 |
| Whole Life (Permanent) Insurance | 506 |
| Endowment Insurance | 506 |
| Universal Life | 507 |
| Variable Life | 507 |
| Survivor Life | 508 |
| Single Premium Whole Life | 508 |
| Dividends | 509 |
| Review Questions | 509 |
| Life Insurance Trust | 511 |
| Considerations | 512 |
| Annuities | 514 |
| Deferred Annuity | 514 |
| Private Annuity | 514 |
| Buy-Sell Agreements | 517 |
| Definition | 517 |
| Entity & Cross-Purchase Agreements | 519 |
| Purchase Price & Terms | 526 |
| Community Property | 527 |
| Professional Corporations | 527 |
| S Corporations | 527 |
| Sole Shareholder Planning | 528 |
| Review Questions | 529 |
CHAPTER 15 HOME SALES & MOVING EXPENSES532
| Introduction | 532 |
| Capital Gains & Qualified Dividends | 533 |
| Rates - §1 | 533 |
| 28% Rate Group | 536 |
| 25% Rate Group - Unrecaptured §1250 Gain | 536 |
| 15% (or sometimes 20%) Rate Group - Adjusted Net Capital Gain | 537 |
| The Hidden Rate - Net Investment Income Tax - §1411 | 537 |
| AMT | 538 |
| Netting Capital Gains & Losses | 538 |
| Analysis | 540 |
| Home Sales - §121 | 541 |
| Exclusion Amount | 541 |
| Ownership & Use Requirements | 544 |
| Review Questions | 551 |
| Two-Year Requirement | 553 |
| Remainder Interests | 553 |
| 1099-S Reporting | 553 |
| Moving Expenses - §217 | 555 |
| Review Questions | 559 |
CHAPTER 16 ESTATE PLANNING562
| Unlimited Marital Deduction | 563 |
| Outright To Spouse | 563 |
| Marital Deduction Trust - §2056 | 564 |
| Qualified Terminable Interest Property (QTIP) Trust | 564 |
| Applicable Exclusion Amount | 564 |
| Stepped-up Basis - §1014 | 566 |
| Basic Estate Planning Goals | 566 |
| Primary Dispositive Plans | 567 |
| Simple Will | 567 |
| Review Questions | 571 |
| Trusts | 573 |
| Types of Trusts | 574 |
| Living "A-B" Revocable Trust | 574 |
| Living "A-B-C" (QTIP) Trust | 577 |
| Charitable Trusts | 579 |
| Charitable Remainder Trusts | 579 |
| Charitable Income Trusts | 579 |
| Insurance Trusts | 580 |
| Family Documents | 582 |
| Living Will | 584 |
| Property Agreement & Inventory | 584 |
| Durable Power Of Attorney | 584 |
| Conservatorship | 585 |
| Funeral Arrangements | 585 |
| Anatomical Gifts | 585 |
| Private Annuity? | 585 |
| Advantages to the Transferor | 586 |
| Disadvantages to the Transferor | 586 |
| Advantages to the Transferee | 586 |
| Disadvantages to the Transferee | 586 |
| Regulations Restrict Private Annuity Income | 586 |
| Review Questions | 587 |
Answers & Explanations589
Glossary657
Index of Keywords & Phrases658
Course Details
Author: Danny Santucci, J.D.
Danny earned his Bachelor of Arts in Political Science from the University of California at Irvine in 1969. He received his Juris Doctorate from Boalt Hall School of Law, University of California at Berkeley in 1972, at which time he began practice as a tax attorney in Southern California.
His legal career was initiated with the business and litigation firm of Edwards, Edwards and Ashton. Later he joined the Century City entertainment firm of Bushkin, Gaims, Gaines & Jonas working for many well-known celebrities. In 1980, Danny established the law firm of Santucci, Potter and Leanders, in Irvine, California. With increasing lecture and writing commitments, Danny went into sole practice in 1995. His practice emphasizes business taxation, real estate law and estate planning.
Danny has been an officer and active member in various organizations including the Glendale Bar Association, Century City Bar Association, Orange County and Los Angeles County Bar Associations, California State Bar Association, Toastmasters and Lions Club. He also avidly supports the American Association for the Advancement of Science. He has been admitted to practice before all California and federal courts including the United States Tax Court and the United States Supreme Court.
Serving as a lecturer for the Continuing Education of the Bar of California, Golden Gate University, and numerous state C.P.A. societies, Danny teaches a variety of tax, business and real estate courses. Danny has been in demand all across the country as a speaker for all levels of professional and civic organizations and numerous major seminar circuits. Danny spoke to over 2,000 people per month and traveled more than 150,000 miles annually.
In 2015, he withdrew from the lecture circuit to devote himself to tax research and writing. The author of numerous texts, he is listed in "Who’s Who in Creative Real Estate" and is admitted to the American Exchangor’s Hall of Fame.
Publication/Revision Date: 2/6/26
Course Exam Questions (online): 200 (multiple-choice)
Program Delivery Method: Self-Study (NASBA QAS Self-Study)
Available Formats of Course Text: Downloadable PDF, Printed/Mailed
Course Level, Prerequisites, and Advance Preparation Requirements
| License | Course Level | Prerequisites | Advance Preparation Requirements |
|---|
| CPA | Overview | None | None |
| CFP® | Intermediate | None | None |
| EA/OTRP | Overview | None | None |
| ERPA | Overview | None | None |
* This program is appropriate for professionals at all organizational levels.
Sponsor ID Numbers
National Registry of CPE Sponsors I.D.: 107615
CFP Board Sponsor I.D.: 1008 — Course I.D.: 257119
IRS Qualified Sponsor I.D.: FWKKO
EA/OTRP Course I.D.: FWKK0-T-00737-26-S
ERPA Course I.D.: FWKK0-Q-00738-26-S
State CPA Board Sponsor ID Numbers (where applicable)
Florida Division of Certified Public Accounting: 0004761
Hawaii Board of Public Accountancy: 14003
New York State Board for Public Accountancy: 002146
Ohio Accountancy Board: CPE .51 PSR
Pennsylvania State Board of Accountancy: PX178025
Texas State Board of Public Accountancy: 009349
Learning Objectives
Chapter 1: Financial Tax Planning
Learning Objectives
As a result of studying the course material, you should be able to meet the objectives listed below:
- Identify short-term financial goals and investment purposes and recognize the importance of retirement income and money management.
- Determine the tax consequences of title holding methods by specifying ways to hold title to assets starting with the simplest and most direct ways to hold property.
After studying the materials in Chapter 1, answer exam questions 1 to 7.
Chapter 2: Building an Estate
Learning Objectives
As a result of studying the course material, you should be able to meet the objectives listed below:
- Identify money management specifying income types and cite reporting requirements for taxable income.
- Determine how to convert income into assets by purchasing investments, specify tax-advantaged investments, and determine the economic impact of accelerating deductions and postponing tax liability.
After studying the materials in Chapter 2, answer exam questions 8 to 21.
Chapter 3: Preservation of Wealth
Learning Objectives
As a result of studying the course material, you should be able to meet the objectives listed below:
- Identify obstacles to the preservation of wealth, determine net worth using a balance sheet, and select assets and liabilities for an inventory on which to base financial goals.
- Specify why individuals should take primary responsibility for investment planning including necessary self-education and determine basic income tax planning tactics.
After studying the materials in Chapter 3, answer the exam questions 22 to 26.
Chapter 4: Deferral
Learning Objectives
As a result of studying the course material, you should be able to meet the objectives listed below:
- Identify the benefits of tax deferral, cite the tax deferral advantage under §1031 listing its elements, specify the related party §1031 restrictions identifying prohibited parties or entities, determine the exchange restrictions on partnership interests and personal property, and recognize delayed exchanges.
- Identify retirement plan design and recognize popular methods for providing for retirement.
- Specify the requirements for an installment sale, determine the variables affecting §453 availability, and recall how to use a property option to receive income and postpone tax.
After studying the materials in Chapter 4, answer exam questions 27 to 41.
Chapter 5: Reduction
Learning Objectives
As a result of studying the course material, you should be able to meet the objectives listed below:
- Identify tax credits specifying qualified expenses, limitations, and restrictions and specify the deductible and nondeductible interest types.
- Identify business vehicle operating costs using (or switching between) the actual cost method or the standard mileage rate, recognize the application of R.R. 90-23 and R.R. 99-7 to the deduction of temporary work location costs, and recall the business entertainment expense statutory exceptions.
- Determine MACRS business asset depreciation and identify sources of §172 net operating losses (NOLs) recognizing carryback and carryover rules.
After studying the materials in Chapter 5, answer exam questions 42 to 54.
Chapter 6: Income Splitting
Learning Objectives
As a result of studying the course material, you should be able to meet the objectives listed below:
- Recognize basic formats for income splitting, determine the tax treatment of employee and self-employed business expenses, particularly home-office expenses, and identify the tax opportunities available to an unincorporated business including retirement plans, casualty losses, and bad debt deduction.
- Determine the uses and tax characteristics of regular and S corporations, specify initial §351 formation and capitalization issues, and recognize the use of partnerships to split income among partners.
- Identify the taxation of child income and the dangers of the "kiddie tax" and recognize the use of educational bonds.
After studying the materials in Chapter 6, answer the exam questions 55 to 67.
Chapter 7: Elimination
Learning Objectives
As a result of studying the course material, you should be able to meet the objectives listed below:
- Identify tax elimination techniques by recognizing the §121 home sale exclusion and specify the tax elimination aspects of family transactions such as gifts, inheritances, and even divorce.
- Recognize employer deductions as a means to increase tax-free incentive-
After studying the materials in Chapter 7, answer the exam questions 68 to 75.
Chapter 8: Asset Protection
Learning Objectives
As a result of studying the course material, you should be able to meet the objectives listed below:
- Identify the goals and purposes of asset protection recognizing objections some people have about shielding assets from creditors, cite reasons for asset protection and situations that put assets at risk, and define asset protection using the primary concepts of insurance, asset placement, and statutory protections.
- Recognize the importance of creditor types associated with asset protection and fraudulent transfers.
- Determine the degree and necessity of asset protection using net worth and asset values on a balance sheet, identify the ways that insurance and buy-sell agreements can offer asset protection, and recognize the asset protection advantages and disadvantages of ownership formats and entities.
- Identify what constitutes post-nuptial and premarital agreements stating how they relate to divorce settlements and divisions.
After studying the materials in Chapter 8, answer the exam questions 76 to 96.
Chapter 9: How Much Do You Need To Retire?
Learning Objectives
As a result of studying the course material, you should be able to meet the objectives listed below:
- Recognize the importance of preparing for retirement and summarize the basic guidelines of retirement planning, including common pitfalls and misconceptions of retirement.
- Determine retirement using the major levels of retirement and key questions that have financial and personal ramifications.
- Identify retirement costs and income needs of clients based on their current budget, recognize tax savings strategies, and identify guidelines when purchasing investment assets.
After studying the materials in Chapter 9, answer exam questions 97 to 113.
Chapter 10: Social Security Benefits & Retirement Planning
Learning Objectives
As a result of studying the course material, you should be able to meet the objectives listed below:
- Determine how Social Security funds are invested and paid, specify the system's mechanics, list qualified Social Security participants determining their benefit eligibility, identify the requirements to receive Social Security, and list its multi-step calculation process.
- Recognize Social Security taxes, their tax rates, and covered earnings allowing better retirement planning.
- Specify the eligibility requirements of Social Security disability benefits and survivors' benefits, and determine what constitutes Medicare Part A and Medicare Part B recognizing their qualifications.
After studying the materials in Chapter 10, answer the exam questions 114 to 127.
Chapter 11: Retirement Plans
Learning Objectives
As a result of studying the course material, you should be able to meet the objectives listed below:
- Identify qualified deferred compensation plans specifying their benefits, contributions, and ERISA restrictions and specify the requirements for the basic forms of qualified pension plans.
- Recall the variety of qualified plans, identify employee contributions, and recognize plan termination rules.
- Differentiate self-employed plans from qualified plans for other business types, and identify the requirements of IRAs, SEPs, SIMPLEs, and tax-free Roth IRAs.
After studying the materials in Chapter 11, answer the exam questions 128 to 146.
Chapter 12: Distributions from Retirement Plans & IRAs
Learning Objectives
As a result of studying the course material, you should be able to meet the objectives listed below:
- Identify popular ways to receive distributions from a retirement plan or an IRA including lump sum and annuity distributions and their respective tax treatment options.
- Recognize the key components of rollovers that can be used to reinvest cash or other assets without including the amount in income.
- Specify the tax consequences of taking premature distributions, stating how to avoid the 10% penalty.
- Identify the minimum distribution rules and recognize the ability of
After studying the materials in Chapter 12, answer exam questions 147 to 158.
Chapter 13: Nonqualified Plans
Learning Objectives
As a result of studying the course material, you should be able to meet the objectives listed below:
- Recognize the postponement of income with deferred compensation arrangements and specify the IRS's position on such arrangements stating the impact of constructive receipt and economic benefit concepts;
- Determine the mechanics of unfunded and funded plans stating the use of company assets or bookkeeping accounts and specify the tax consequences of establishing a nonqualified plan.
After studying the materials in Chapter 13, answer the exam questions 159 to 167.
Chapter 14: Life Insurance, Annuities & Buy-sell Agreement
Learning Objectives
As a result of studying the course material, you should be able to meet the objectives listed below:
- Specify reasons to purchase life insurance, recognize the tax treatment of life insurance proceeds, and determine the gift tax associated with transfers of life insurance policies.
- Identify the pros and cons of the various types of insurance policies, specify the reasons for using an irrevocable life insurance trust in an estate plan, and differentiate deferred and private annuities.
- Determine what constitutes entity purchase and cross-purchase buy-sell agreements recognizing tax and legal advantages.
After studying the materials in Chapter 14, answer the exam questions 168 to 180.
Chapter 15: Home Sales & Moving Expenses
Learning Objectives
As a result of studying the course material, you should be able to meet the objectives listed below:
- Determine the relationship between home sales and the capital gains rates.
- Recognize the key elements and application of the §121 home sale exclusion and identify safe harbor regulations associated with the home sale exclusion.
- Identify the disallowance deductible moving expenses under §217.
After studying the materials in Chapter 15, answer the exam questions 181 to 189.
Chapter 16: Estate Planning Issues
Learning Objectives
As a result of studying the course material, you should be able to meet the objectives listed below:
- Recognize the unlimited marital deduction and its effect on the gross estate and specify the applicable exclusion amounts for various years of death.
- Identify the relationship of simple wills to probate and why some plan to avoid it.
- Specify various types of estate trusts and their use to accomplish planning goals, recognize the benefits and drawbacks of the primary dispositive plans, and determine the advantages and disadvantages of private annuities.
After studying the materials in Chapter 16, answer exam questions 190 to 200.
