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Course Details

Complete Guide to Estate and Gift Taxation (Course Id 759)

Updated / QAS / Registry / EA
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Author : Danny C Santucci, JD
Course Length : Pages: 0 ||| Review Questions: 0 ||| Final Exam Questions: 190
CPE Credits : 38.0
IRS Credits : 38
Price : $173.95
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 759

Description :

This presentation integrates federal taxation with overall financial planning. The course will explore tax strategies relating to the central financial tactics of wealth building, capital preservation, and estate distribution. The result is a unified explanation of tax economics that will permit the tax professional to locate, analyze, and solve financial concerns. Designed to improve the quality of services to clients and the profitability of engagements, this program projects the accountant into the world of financial planning. This course will give the participant practice in analyzing problems, developing solutions, and presenting final personal financial plans to clients.

The course surveys wills, living trusts, gifts, marital property, and probate avoidance. Will and trust forms are explored along with living wills, durable powers of attorney, and nominations of conservator. Designed to eliminate estate problems and death taxes, the emphasis is on practical solutions that are cost effective.

Usage Rank : 19630
Release : 2023
Version : 1.0
Prerequisites : General understanding of estate and gift taxation.
Experience Level : Overview
Additional Contents : Complete, no additional material needed.
Additional Links :
Advance Preparation : None.
Delivery Method : QAS Self Study
Intended Participants : Anyone needing Continuing Professional Education (CPE).
Revision Date : 10-Oct-2023
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 - 759

Keywords : Taxes, Complete, Guide, Estate, Gift, Taxation, 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.

Chapter 1                Financial Tax Planning

       At the start of Chapter 1, participants should identify the following topics for study:

    * Goals v. purposes
    * 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
Learning Objectives:

       After reading Chapter 1, participants will be able to:
    1. Identify short-term financial goals and investment purposes, and recognize the importance of defining, listing, and prioritizing realistic goals specifying how investing allocation changes with age.
    2. Determine the tax consequences of title holding methods by:
      a. Specifying ways to hold title to assets starting with the simplest and most direct way to hold property;
      b. Cite the tax benefits and drawbacks of co-tenancies, corporations (both C & S), partnerships, qualified retirement plans, and trusts particularly as they relate to a client's after-tax investment return; and
      c. Identifying custodianship under the uniform acts and determining how an estate can be tax beneficial to taxpayers.
    3. Recognize the impact of retirement planning postponement identifying the importance of early planning using the author's suggested step process, specify a balance sheet method to plan retirement, determine how to diversify portfolios by balancing liquid and nonliquid assets, and identify the purpose of savings and strategies to save.
Chapter 2                Building an Estate

       At the start of Chapter 2, participants should identify the following topics for study:

    * Types of income
    * Information reporting on taxable income
    * Rules of budgeting
    * Cash
    * Acquisition
    * Assets
    * Rules of management
    * Managing risk
    * Taxes
    * Leverage
Learning Objectives:

       After reading Chapter 2, participants will be able to:
    1. Identify money management specifying income types, recognize causes of increased taxable income for itemizing taxpayers, and specify taxable income types and their proper reporting.
    2. Determine the distinctions between tax-free municipal bonds from fringe benefits in generating tax-free income, cite the benefits of tax deferral, 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 with the author's step process and discretionary income development, identify a client’s negative outlook on budgeting and counter strategies, determine how to convert income into assets by purchasing investments, and specify asset acquisition rules.
    5. Specify tax-advantaged investments citing management rules, and determine the economic impact of accelerating deductions, postponing tax liability, and leveraging.
Chapter 3                Preservation of Wealth

       At the start of Chapter 3, participants should identify the following topics for study:

    * Obstacles to preservation
    * Tracking spending
    * Building savings
    * Designing a budget
    * Determining worth
    * Analyzing net worth
    * Ignorance
    * Inflation
    * Taxes
    * Tax planning tactics
Learning Objectives:

       After reading Chapter 3, participants will be able to:
    1. Identify spending habits stating how to design a budget to increase discretionary income, determine net worth using a balance sheet, and select assets and liabilities for an inventory on which to base financial goals.
    2. Specify why individuals should take primary responsibility for investment 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 tax planning tactics.
Chapter 4                Deferral

       At the start of Chapter 4, participants should identify the following topics for study:

    * Elements of like-kind exchanges
    * 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
Learning Objectives:

       After reading Chapter 4, participants will be able to:
    1. Identify the benefits of tax deferral, recall the former use of tax deferral under §1034, and cite the tax deferral advantage under §1031 listing its elements.
    2. Specify the related party §1031 restrictions identifying prohibited parties or entities and permissible disposition exceptions, cite recommendations for the protection of exchange participants, and recognize the history of the multiple property regulations stating the unique netting requirements for multiple asset exchanges.
    3. Recall the evolution of delayed exchanges naming allowable transfers, determine how to select qualified replacement property, specify constructive receipt safe harbors & methods to secure exchange party performance, cite the §1031 partnership underlying asset rule, identify retirement plan design, identify popular methods for providing for retirement, and select near retirement investments.
    4. Specify the requirements for an installment sale, determine how to elect out of the installment method, identify the variables affecting §453 availability, 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:

    * Work Opportunity Credit & Rehabilitation Credit
    * 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
Learning Objectives:

       After reading Chapter 5, participants will be able to:
    1. Identify tax credits specifying qualified computational expenses, limitations, and restrictions.
    2. Recognize the estimated tax rules and procedures including payment deadlines, underpayment penalties, and the economics of overpaying estimated taxes, and specify the nondeductible interest types.
    3. Determine the deductibility of investment interest, prepaid interest, points, and prepayment penalties recognizing the offset of passive income with rental property mortgage interest.
    4. Identify business vehicle operating costs using (or switching between) the actual cost method or the standard mileage rate, recognize the importance of expense and mileage records and specify depreciation traps when purchasing a vehicle.
    5. Recall the requirements for business expenses to meet the directly related test, cite the elements of the associated test, identify the business expense statutory exceptions, 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.
    6. Determine business asset depreciation using both ACRS and MACRS recovery classes, identify sources of §172 net operating losses (NOLs) recognizing carryback and carryover rules, specify tax breaks for nonitemizing taxpayers, recognize the advisability of filing an amended return, determine how to avoid audits by claiming refunds for provable items stating which return amendments are safest.
Chapter 6                Income Splitting

       At the start of Chapter 6, participants should identify the following topics for study:

    * Using progressive tax rates
    * Deductible business expenses
    * Home-office deduction
    * C or regular corporations
    * S corporations
    * Family partnerships
    * Kiddie tax trap
    * Childcare & education
    * Gifts
    * Interest-free loans
Learning Objectives:

       After reading Chapter 6, participants will be able to:
    1. Recognize formats for income splitting, determine the tax treatment of employee and self-employed business expenses particularly home-office expenses stating the two non-exclusive use exceptions and the income limitation, cite changes made to home office deduction under TRA ’97, and recognize the ability of self-employeds to make annual deductible contributions to a Keogh plan.
    2. Identify the tax opportunities available to an unincorporated business including retirement plans, the hiring of family members, travel expenses, casualty losses, bad debts, and self-employment tax.
    3. Determine the uses and tax characteristics of regular and S corporations by:
      a. Citing circumstances when incorporation is desirable,
      b. Recognizing the taxation of these entities including their ability to split income; and
      c. Specifying initial §351 formation and capitalization issues and identifying appropriate tax form filings for each entity.
    4. Recognize the use of partnerships to split income among partners including the use of §704(e) family partnerships and the consequences of gifting a partnership interest to a child or to another family member.
    5. Identify the use of a custodianship to split income specifying planning considerations and good investments for children, recognize deductions and credits for childcare, education, children, and §7872 loans, and specify the income and later estate tax benefits of gifts.
Chapter 7                Elimination

       At the start of Chapter 7, participants should identify the following topics for study:

    * $500,000 home sale exclusion
    * 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
Learning Objectives:

       After reading the Chapter 7, participants will be able to:
    1. Identify tax elimination techniques by:
      a. Recognizing the current §121 home sale exclusion citing its differences with prior tax law;
      b. Determining qualifications for tax-free state or local obligations including private activity bonds; and
      c. Specifying the tax elimination aspects of family transactions such as gifts, bequests, inheritances, life insurance, and even divorce.
    2. Recognize employer deductions as a means to increase tax-free incentive-based compensation for employees by:
      a. Specifying rules for excluding fringe benefits under §132 and their proper reporting on the W-2; and
      b. Identifying popular employee fringe benefits including employer-paid accident & health coverage, meals or lodging, cafeteria plan benefits, §127 education assistance, achievement awards, group life insurance, and dependent care assistance.
    3. Determine how to value fringe benefits according to IRS regulations, identify how to comply with ERISA requirements, specify the proper reporting of reimbursed and unreimbursed business expenses under accountable and nonaccountable plans, determine the substantiation of auto expenses using a fixed and variable rate, and specify eligible retirement benefits exempt from social security taxes.
Chapter 8                Asset Protection

       At the start of Chapter 8, participants should identify the following topics for study:

    * Need for asset protection
    * Types of creditors
    * Fraudulent transfers
    * Preparation for asset protection
    * Types of insurance
    * Buy-sell agreements
    * Individual ownership and corporate ownership
    * Asset protection aspects of trusts
    * Co-tenancy and partnerships
    * Divorce
Learning Objectives:

       After reading Chapter 8, participants will be able to:
    1. Identify the goals and purposes of asset protection recognizing the objections some people have about shielding assets from creditors by:
      a. Citing reasons for asset protection and situations that can unexpectedly put assets and financial security at stake;
      b. Specifying sources of lawsuits and the author's concept of exploding and imploding liability; and
      c. Determining asset protection using the primary concepts of insurance, asset placement, and statutory protections.
    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 asset protection using net worth and asset values on a balance sheet.
    5. Identify the ways that insurance and buy-sell agreements can offer asset protection by:
      a. Citing the asset protection elements of homeowner's, automobile, and disability insurance;
      b. Specifying the parties under a life insurance contract stating potential reasons for establishing an irrevocable life insurance trust, and
      c. Determining what constitutes entity purchase and cross-purchase buy-sell agreements.
    6. Recognize the asset protection advantages and disadvantages of ownership formats and entities by:
      a. Determining the use of individual ownership and corporate ownership in an asset protection plan including the importance of S corporations and their estate tax planning advantages;
      b. Identifying testamentary trusts, living trusts, and subcategories of trusts recognizing asset protection elements;
      c. Specifying the various types of co-tenancy, citing their asset protection dangers, and several types of partnerships citing their variation from limited liability companies; and
      d. Recognizing the unique asset protection qualities of retirement plans, custodianship, and estates as asset protection tools.
    7. Identify the formats that courts typically follow if a couple does not have an enforceable premarital agreement, and determine what constitutes post-nuptial and premarital agreements stating how they relate to divorce settlements and divisions.
Chapter 9                Estate Planning

       At the start of Chapter 9, participants should identify the following topics for study:

    * Build, preserve & distribute
    * Legal documents
    * Estate planning team
    * Estate administration
    * Transfers within probate
    * Transfers outside probate
    * Transfers using a trust
    * Special planning tools
    * Facts
Learning Objectives:

       After reading Chapter 9, participants will be able to:
    1. Identify basic estate planning elements recognizing the importance of well-drafted legal documents and specify the key team participants including their roles in the estate planning process.
    2. Determine the major steps in the probate process, identify ways to make transfers outside the probate system including the use of a trust, specify estate tax techniques that save death taxes while retaining maximum control, and identify estate-planning facts.
Chapter 10                Estate & Gift Taxes

       At the start of Chapter 10, participants should identify the following topics for study:

    * Taxable estate
    * IRS valuation
    * Estate tax return & payment
    * Tax basis for estate assets
    * Generation-skipping transfer tax
    * Application of gift taxes and valuation
    * Gift tax annual exclusion
    * Gift tax marital and charitable deductions
    * Gift tax advantages and disadvantages
    * Shifting income & gain
Learning Objectives:

       After reading Chapter 10, participants will be able to:
    1. Identify potential death taxes including federal estate tax as it applies to various size estates, specify the principal taxes that impact death taxation, and determine the expiration of the death tax credit.
    2. Determine what constitutes a taxable estate under §2501 specifying what assets are included in a gross estate using basic categories of property and transfers.
    3. Specify estate deductions allowed under federal estate tax law stating their tax advantages and disadvantages.
    4. Determine the value of a decedent’s assets using permitted elections, recognize the use of Form 706 to pay any estate tax due, and select the tax basis of estate assets stating how common transactions affect property basis under §1014.
    5. Recall the advantages of gift planning including estate reduction recognizing the impact of the GST, specify the steps to compute gift tax identifying the gift tax exclusion amount, and determine the value of gifts including those that are split.
    6. Identify the various gift tax exclusions, specify the tax treatment of below-market loans, recall the gift tax marital deduction requirements, determine the tax consequences of giving various assets specifying factors to consider when gifting, and recognize the use of Form 709 to compute and pay federal gift tax.
Chapter 11                Wills & Probate

       At the start of Chapter 11, participants should identify the following topics for study:

    * Provisions of wills
    * 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
Learning Objectives:

       After reading Chapter 11, participants will be able to:
    1. Specify types of wills citing the functions a will can perform, identify types of bequests, determine the duties of executors and guardians, and recall ways to hold title and their tax ramifications.
    2. Identify advantages of a properly drafted will, determine the distribution flow of simple wills, and specify the pros and cons of probate proceedings.
Chapter 12                Trusts

       At the start of Chapter 12, participants should identify the following topics for study:

    * Purpose of trusts
    * Common elements of trusts
    * Types of trusts
    * Living trusts
    * Income tax & trusts
    * Gift tax & trusts
    * Estate tax & trusts
    * Identification, recital & property transfer clauses
    * Income and principal & revocation and amendment clauses
    * Trustee and trust termination clauses
Learning Objectives:

       After reading Chapter 12, participants will be able to:
    1. Identify the relationship of parties in a trust, reasons to establish a trust, and types of trusts specifying their estate planning function.
    2. Specify recommended living trust provisions, identify the application of gift and income tax including the use of a grantor trust and an unlimited marital deduction, and determine what constitutes an “A-B” and “A-B-C” trust format.
Chapter 13                Entity & Title

       At the start of Chapter 13, participants should identify the following topics for study:

    * Individual ownership & sole proprietorships
    * Corporations
    * Trusts holding title & business trusts
    * Co-tenancy taxation, percentage interests & partition
    * Partnership taxation & recapitalization
    * Family partnerships
    * Limited liability companies
    * Retirement plans
    * Custodianship
    * Estate
Learning Objectives:

       After reading Chapter 13, participants will be able to:
    1. Recognize basic tax and legal title formats identifying the advantages and disadvantages of holding property in a sole proprietorship, a corporation, or an S corporation.
    2. Identify the title holding benefits of trusts, co-tenancy, partnerships, and limited liability companies and the tax characteristics of each, recognize the types of retirement plans used to provide lifetime benefits to a business owner and to employees, and specify the tax treatment of custodianships and a probate estate.
Chapter 14                Life Insurance, Annuities & Buy-Sell Agreements

       At the start of Chapter 14, participants should identify the following topics for study:

    * Types of life insurance
    * Life insurance trusts
    * Deferred annuities
    * Private annuities
    * Buy-sell agreements
    * Purchase price & terms
    * Community property
    * Professional corporations
    * S corporations
    * Sole shareholder planning
Learning Objectives:

       After reading Chapter 14, participants will be able to:
    1. Specify persons in which rights are placed by life insurance and reasons to purchase life insurance.
    2. Identify the tax treatment of life insurance proceeds by:
      a. Determining the treatment of premiums for personally owned life insurance and related benefits and specifying exceptions to this treatment including the transfer for value rule;
      b. Select variables that influence whether life insurance is taxable for federal estate tax purposes; and
      c. Recalling the gift tax associated with the transfer of life insurance policies.
    3. Determine the pros and cons of life insurance policy types and specify estate tax planning reasons for establishing an irrevocable life insurance trust.
    4. Recognize the differences between deferred annuities and private annuities and determine what constitutes an entity purchase agreement and a cross-purchase agreement and their tax and legal advantages.
Chapter 15                Special Business Issues

       At the start of Chapter 15, participants should identify the following topics for study:

    * Business valuation of tangible & intangible assets & goodwill
    * Business valuation of qualified family-owned businesses
    * Business valuation of land subject to a conservation easement
    * Business valuation discounts
    * Redemptions
    * Buy-sell agreements
    * Death of spouse
    * Stock redemptions
    * Stock recapitalization
    * Deferred compensation agreements
Learning Objectives:

       After reading Chapter 15, participants will be able to:
    1. Identify reasons why a business interest must be valued in an estate that is subject to federal estate tax, specify factors used to determine the net value of a business under the regulations, and recall the valuation factors in R.R. 59-60 specifying their impact.
    2. Determine how tangible assets are normally valued identifying those assets whose valuation is based on values other than book value, and specify the steps in R.R. 68-609’s valuation formula for intangible assets specifying the effect such amount can have on the total value of a business.
    3. Identify special business valuation issues including redemptions under §303 by:
      a. Determining what constituted the now repealed qualified family-owned business estate tax deduction;
      b. Recalling the terms of the election that allows clients to exclude from their taxable estate 40% of the value of land subject to a qualified conservation easement;
      c. Determining the value of a minority stock interest and fractional interests in order to obtain applicable valuation discounts, and
      d. Citing the §303 exception to the dividend treatment of redemptions stating qualifications.
    4. Determine the tax consequences in leaving an estate to a surviving spouse, specify the elements of buy-sell agreements, stock redemptions, and stock recapitalizations in order to dispose of business interests before death, and identify deferred compensation agreements recognizing their estate planning impact.
Chapter 16                Estate Tax Freeze Rules

       At the start of Chapter 16, participants should identify the following topics for study:

    * Application of estate tax freeze rules
    * Corporations, partnerships & exceptions
    * Qualified payment exception to zero value rule
    * Minimum valuation of a junior interest
    * Capital contributions, redemptions & recapitalizations
    * Attribution rules
    * Transfers of interests in trust
    * Term interests & joint purchases
    * Buy-sell agreements & options
    * Lapsing rights & restrictions
Learning Objectives:

       After reading Chapter 16, participants will be able to:
    1. Determine the benefits of an estate freeze and its ability to reduce the value of a business interest, identify transactions to which Chapter 14 rules apply and terminology used in the Chapter 14 valuation rule that applies to corporations and partnerships, and specify exceptions to §2701.
    2. Identify the “zero value” rule under §2701 by:
      a. Recalling the qualified payment exception and the consequence of being excepted;
      b. Specifying variables that impact the application of §2701 stating how to avoid taxable events when valuing a distribution right;
      c. Determining the transfer tax when a taxpayer fails to make a qualified payment on time identifying the appropriate election into or out of qualified payment treatment; and
      d. Specifying a junior equity interest according to §2701 rules and determining the value of other rights held together with an extraordinary payment right.
    3. Determine the application of §2701 provisions by:
      a. Recalling the treatment of a capital contribution, a redemption, or a recapitalization under §2701;
      b. Identifying when an individual is deemed the owner of an interest that is held indirectly through a corporation, partnership, trust, or other entity based on the §2701 attribution rules;
      c. Specifying when transfer tax adjustments will be made to transfers or inclusions in the gross estate;
      d. Identifying the split of an applicable retained interest allowing value to be given to a participating feature of a participating preferred interest, and
      e. Specifying the stepped computation under the subtraction method to determine an amount of a gift resulting from a transfer to which §2701 applies.
    4. Recall the terms used in §2702 concerning transfers of interests in trust, identify the application of the zero value rule to a transfer of an interest in trust, specify exceptions to §2702, determine the transfer of an interest in property when there are one or more term interests as a transfer of an interest in a trust, and specify the treatment of joint purchases.
    5. Recognize the requirements and exceptions of §2703 to ensure property is valued appropriately, identify lapses as a transfer by gift or as includible in the decedent’s gross estate under §2704, recall the key terminology of §2704 under the evaluation rules, specify the amount of the transfer stating which lapses or restrictions qualify as an applicable restriction.
Chapter 17                Elderly & Disabled Planning

       At the start of Chapter 17, participants should identify the following topics for study:

    * Managing the estate
    * Medicare
    * Medicaid & countable assets
    * Medicaid & non-countable assets
    * Medicaid & inaccessible assets
    * Private insurance
    * Healthcare decisions
    * Supplemental Security Income
    * Income & assets
    * Disability benefits
Learning Objectives:

       After reading Chapter 17, participants will be able to:
    1. Recall estate management techniques for the elderly and disabled by:
      a. Identifying joint tenancy and the benefits and drawbacks of using such a method for asset management;
      b. Specifying levels of conservatorship that can influence management and protection of an estate and/or personal care and disadvantages of this tool; and
      c. Determining what constitutes a durable power recognizing advantages of establishing a revocable living trust as a way to manage assets in an estate.
    2. Cite the eldercare benefits of Medicare, Medicaid, and Supplemental Security Income, identify disadvantages of the Medicaid program stating how to divide income into asset groups, and specify the dangers and benefits of gifting to family members, including how individuals might use private insurance for catastrophic illness.
    3. Identify tools that can allow patients to refuse treatment even when incompetent, determine Supplemental Security Income specifying how it relates to elderly and disability planning, and specify the requirements that must be met in order to receive disability benefits.
Chapter 18                Post-Mortem Planning & Tax Return Requirements

       At the start of Chapter 18, participants should identify the following topics for study:

    * After death planning
    * Federal returns
    * Decedent’s estate tax
    * Preparation of Form 706
    * Estate income tax return
    * Filing requirements of decedent’s final income tax return
    * Included income
    * Exemptions & deductions
    * Filing the gift tax return
    * Special applications & traps of the gift tax return
Learning Objectives :

       After reading Chapter 18, participants will be able to:
    1. Determine post-mortem estate planning action in the face of funeral and administrative expenses using elections and disclaimers.
    2. Cite the due dates of post-mortem federal forms, specify the filing requirements of a decedent’s estate tax return, and identify exceptions to the general rule of estate tax payment.
    3. Determine the processes and procedures necessary in the preparation and filing of Form 706.
    4. Identify the filing requirements for estate income tax and decedent’s final income tax returns by:
      a. Determining the estate income tax under available tax accounting methods and tax years; and
      b. Specify the use of Form 1310 for a decedent or a joint return for a decedent and his or her surviving spouse.
    5. Determine total income to be included on the decedent’s final income tax return using available exemptions or deductions.
    6. Identify how to avoid penalties when filing a gift tax return, recognize gift splitting to reduce gift taxes, and recall special gift applications and traps stating ways to avoid their tax consequences.
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






Retirement Plan



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


Type #1 - Taxable

Information Reporting on Taxable Income


Salary & Wages

Interest Income



Gambling Winnings

Other Income Known to the IRS

Real Estate Transactions

Type #2 - Tax-free

Type #3 - Tax-Deferred

Type #4 - Tax-sheltered


Borrowed Money

Gain on Home Sales

IRA Rollovers


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



Rule #1: Expenses - 60%

Rule #2: Taxes - 20%

Rule #3: Savings - 10%

Rule #4: Education - 10%

Rule #5: Keep Your Benefits



Emergency Funds

Savings as Deferred Investing

How To Save

Programmed Savings

Tax Savings

Joint vs. Separate Returns

Purchase of Assets


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



Rule #1 - Develop Cash Flow

Rule #2 - Learn To Negotiate

Rule #3 - Manage Risk

Investment Loss


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


Charitable Contributions

Medical Expenses

Miscellaneous Expenses

Business Expenses


Chapter 3 - Preservation of Wealth

Four Obstacles to Preservation

Spending Habits

Track Your Spending



Living Expenses



Credit Card Payments

The Bottom Line

Converting a Minus Into a Plus

Build in Savings


Designing a Budget

What Are You Worth?

Inventory Assets


Personal Property


List Liabilities

Analyze Net Worth

Wasting Assets



Cash Reserve


Taking Control

Planning Responsibility


Asset Allocation - Risk & Return



Tax Planning Tactics

Chapter 4 - Deferral

Former §1034 - Repealed

Section 1031 “Like-Kind” Exchanges

Exchange Advantage

Importance of Deferral

Three Elements

Exchange Requirement

Two-Party Exchanges

Multi-Party Exchanges



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


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


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


Self-Employed Plans

Individual Retirement Accounts

Penalty-Free Withdrawals

Roth IRA - §408A

Tax-Deferred Annuities


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


Late Election Out of Installment Method


Mortgage in Excess of Basis



At Risk Rule


Nonrecourse Financing

Qualified Nonrecourse Financing

Qualified Persons

Deferred Compensation


Chapter 5 - Reduction

Tax Credits

Work Opportunity Tax Credit (WOTC) – §51


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


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


Personal Interest – Repealed (Gone Long Ago)

Investment Interest

Prepaid Interest


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


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

Revenue Ruling 90-23 - Superseded

Temporary Work Site Definition

Reserve Units


Revenue Ruling 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

ACRS - §168

Applicable Percentage

Straight-line Election


Recovery Classes

MACRS Elections


150% Declining Balance

Bonus (or Additional First-year) Depreciation - §168(k)

Phase Down

Qualified Property - §168(k)(2)

Nonqualified Property - §168(k)(2)

MACRS Conventions

Mid-quarter Convention Exception

Election to Expense Assets - §179

Income Limitation


Deduction Reduction

Employee Restriction

Recapture - §1245

Net Operating Losses - §172

Creation of an NOL

Individual NOLs



Corporate NOLs

Further Limitations

Tax Breaks for Nonitemizers



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


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


“C” or Regular Corporation

Planning Considerations

When to Incorporate


Cash for Stock

Property for Stock

Stock for Services

Stock for Debt

Repeal of the “General Utilities” Doctrine

Corporate Assets



Gift & Leaseback

Sale & Leaseback

“S” Corporation

Single Taxation

S Corporation Return

Planning Considerations

Tax Advantages


Corporations That Qualify


Estimated Tax Payments

Family Partnership

Partner’s Distributive Share

Partnership Return

Schedule K-1 (Form 1065)

Family Partnerships

Family Members


Children as Partners

Earned Income

Gift of Capital Interest

Custodianship & Children


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 by Check



Interest Free Loans

De Minimis Exception

Special Rule for Gift Loans

Chapter 7 - Elimination

Former Age 55 Exclusion - Repealed

$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


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


Private Activity Bonds

Divorce & Separation Settlements


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 & Reporting

TRA '86 - Unreimbursed Expenses Become Itemized Deductions

Family Support Act - Reimbursement Without Accounting Is Income

Accountable Plans

Reasonable Period of Time

Fixed Date Safe Harbor

Period Statement Safe Harbor

Adequate Accounting

Per Diem Allowance Arrangements

Federal Per Diem Rate

Related Employer Restriction

Partial Days of Travel

Unproven or Unspent Per Diem Allowances

Reporting Per Diem Allowances

Reimbursement Not More Than Federal Rate

Reimbursement More Than Federal Rate

Nonaccountable Plans

Unreimbursed Employee Expenses

Fixed & Variable Rate (FAVR) Allowances - R.P. 90-34


Periodic Fixed Payment

Periodic Variable Payment


Record keeping

Social Security

Earnings Record

Payments Exempt from Social Security

Social Security Checkup

Form SSA-7004

Form SSA-7050

Chapter 8 - Asset Protection

Why Asset Protection?

Situations That Create Danger

Sources of Lawsuits

Types of Liability

Basic Protection Concepts

Types of Creditors

Evading Creditors

Fraudulent Transfers

Badges of Fraud

Statute of Limitations

Criminal Penalties

Permissible Asset Transfers

Asset Protection Goals



Homeowners Insurance

Automobile Insurance

Disability Insurance

Life Insurance

Life Insurance Trust

Buy-Sell Agreements


Asset Protection Aspects of Common Entities

Individual Ownership

Sole Proprietorship


C Corporation

No Pass-Through

The S Corporation - §1361


Types of Trusts

Revocable Trust

Land Trusts

Irrevocable Trusts

Testamentary Trust

Business Trusts

Foreign Trusts - §679

Asset Protection Trusts - APTs

Foreign Jurisdictions


Income Taxation

Estate & Gift Tax

Creditor Protection

Family Trusts

Medicaid Trust

Grantor Retained Income Trust


Tenancy in Common

Varying Percentages

No Survivorship

Joint Tenancy with Right of Survivorship

Equal Percentages

Tenants by the Entirety

Right of Partition


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




Premarital Agreements

Uniform Premarital Act - The California Example

Permitted Items of Agreement

Unenforceable Items

Retirement Equity Act of 1984

Benefits of a Premarital Agreement

Post-Nuptial Agreements

Chapter 9 - Estate Planning

Build, Preserve & Distribute

Legal Documents

Estate Planning Team



Insurance Agents

Financial Planner

Estate Administration

Probate Court


Internal Revenue Service (IRS)


Family Members

Things to Be Done When Death Occurs

Estate Planning Techniques & Devices

Transfers within Probate

Disposition of Property without a Will

Disposition of Property with a Will

Transfers Outside Probate

Joint Tenancy with Right of Survivorship

Tenancy in Common

Retirement Plan & Individual Retirement Accounts

Life Insurance


Payable on Death Accounts (POD)

Transfers Using a Trust

Special Planning Tools


Annual Gift Tax Exclusion

Applicable Exclusion Amount

Spousal Portability of Unused Exemption Amount

2010 Special Election

Unlimited Marital Deduction

Family Business Deduction - Expired

Installment Payment of Estate Taxes - §6166

Private Annuities

Regs Restrict Private Annuity Tax Benefits

Installment Sale to Family Member

Self-Canceling Installment Notes

Irrevocable Life Insurance Trust

Special Valuation of Farms and Businesses - §2032A

Crummey Trusts

Charitable Remainder Trusts

Minor Trusts

Family Limited Partnerships

Grantor Retained Income Trusts

Qualified Personal Residence Trusts (QPRTs)

Grantor Retained Annuity Trusts (GRATs)

Grantor Retained Unitrusts (GRUTs)

Buy-Sell Agreements

Estate Planning Facts





Existing Estate Plan

Chapter 10 - Estate & Gift Taxes

Federal Estate Tax

Changing Legislative Landscape

Spousal Portability of Unused Exemption Amount - §2010(c)(2)

Persons Subject to Federal Estate Tax

Applicable Exclusion Amount, Basic Computation & Rates

Progressive or Flat Rate

2010 Special Election

State Inheritance Tax

State Death Tax Credit Turns into Deduction – §2011 & §2058

Taxable Estate - §2051

Gross Estate - §2031

Owned Property - §2033

Interests Terminating At Death - Life Estates & Joint Tenancies

Interests Created After Death

Remainder Interests

Dower & Curtsey - §2034

Community Property Comparison

Gifts within Three Years of Death - §2035

Transfers from Revocable Trusts

Retained Life Interest - §2036

Retained Voting Rights

Lifetime Transfers With Reversionary Interests - §2037

Revocable Transfers - §2038

Annuities - §2039

Joint Interests - §2040

Qualified Joint Interests Between Spouses - §2040(b)

Powers of Appointment - §2041

Ascertainable Standard - The Safe Harbor Limitation

5/5 Power

Life Insurance - §2042

Incidents of Ownership

Community Property Issue

Deductions from Gross Estate

Estate Expenses & Claims - §2053

Inclusion of Administrative Expenses on Non-Probate Assets

Casualty & Theft Losses during Administration - §2054

Charitable Transfers - §2055 (§170 & §2522)

Immediate Contributions

Split-Interest Contributions

Charitable Remainder Trusts

Charitable Lead Trusts

Insurance Related Contributions

Unlimited Marital Deduction - §2056


Net Value Rule

Non-Citizen Spouse

Qualified Domestic Trust

Gifts to Non-Citizen Spouses


IRS Valuation Explanation - §7517

Alternate Valuation - §2032

Special Valuation - §2032A

Estate Tax Return & Payment - §6018

Installment Payment of Federal Estate Taxes - §6166


Eligibility & Court Supervision

Closely Held Business

Acceleration of Payment

Flower Bonds

Tax Basis for Estate Assets - §1014

Community Property Cost Basis

Basis of Property Under the 2010 Special Election

Property to Which the Modified Carryover Basis Rules Apply

Limited Basis Increase for Certain Property

GST Tax - §2601

Predeceased Parent Exception



Retroactive Allocation

Gift Taxes - §2501 to §2524

Gift Tax Computation

Calculation Steps

Applicable Exclusion


Entity Rule


Real Property

Stocks & Bonds

Annuities, Life Estates, Terms for Years, Remainders, & Reversions

Split Gifts - §2513

Community Property States

Annual Exclusion

Per Donee/Per Year

Gifts in Excess of the Annual Exclusion

No Gift Tax

Gifts within 3 Years of Death

Uniform Gifts to Minors Act

Exception for Minor’s Trusts - §2503(b) & (c)

Medical & Tuition Exclusion - §2503(e)

Qualifying Transfers

Interest-Free or Below-Market Loans

Gift Tax Marital Deduction

Nondeductible Terminable Interests

Gift Tax Charitable Deduction

Partial Interests

Selecting Gift Property

Gift Advantages

Gift Disadvantages

Gift Tax Returns

Includibility of Gifts in the Estate

Shifting Income & Gain

Gifts before Sale

Transfers into Trust Prior to Sale

Installment Obligations

Transfer to Obligor at Death

Income in Respect of a Decedent

Reporting of Foreign Gifts - §6039(f)

Chapter 11 - Wills & Probate

What Is A Will?

Provisions & Requirements

Specific & General Bequests

Residual Bequests

Conditional Bequests



Types of Wills

Title Implications


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 Avoidance

Joint Tenancy

Community Property

Totten Trust Accounts

Life Insurance & Employee Benefits

Living Trusts

Chapter 12 - Trusts

What is a Trust?

Why a Trust?

Types of Trusts

Common Elements

Revocable Trust

Irrevocable Trusts

Testamentary Trust

Foreign Trusts - §679

Family Trusts

Medicaid Trust

Living Trust


Advantages of a Living Trust



Pour-Over Will

Trust Taxation

Income Tax

Grantor Trusts - §671 to §678

Grantor Retained Income Trust

Revocable Trusts Included in Estate - §646 & §2652(b)(1)

Election for Income Tax Purposes

Irrevocable Trust Taxation

Throwback Rules

Capital Gains

Deduction of Estate Planning Expenses

Deductibility of Death Expenses

Gift Tax

Estate Tax

Unlimited Marital Deduction

Outright to Spouse

Marital Deduction Trust

Qualified Terminable Interest Property (QTIP) Trust

“A-B” Format

“A-B-C” (QTIP) Format

Valuation & Tax Basis

Alternate Valuation

Fundamental Provisions - Revocable Living Trust

Identification Clause

Recital Clause

Property Transfer Clause

Income & Principal Clause

Revocation & Amendment Clause

Trustee Clause

Trustee’s Acceptance

Choice of a Trustee

Factors for Corporate Trustees

Factors for Individual Trustees

Trust Termination Clause

Chapter 13 - Entities & Title

Basic Entity Formats

Individual & Sole Proprietorship

Marital Property

Timing & Domicile


Categories of C Corporations

Personal Holding Company - §541

Attribution Rules

Penalty Tax

Regular C Corporation

Corporate Tax Rate

No Pass-Through

Getting Money Out of the C Corporation

Passive Loss Restrictions

Partnership vs. Corporation

Personal Service Corporation - §269A

S Corporation - §1361

Minors as Shareholders

Bequests & Estate Ownership

Trusts as Shareholders

S Corporation Assets

Built-In Gains Tax - §1374

Incorporation of a Farm

Land Partnership Advantage



Title Holding

Business Trusts



Percentage Interests



Partnership Taxation

Allocation of Income & Deduction

Partnership Recapitalization

Two Class Format


Guaranteed Payment

Control & Management

Estate Issues

Family Partnerships

Estate Savings

Income Tax Savings

Family Partnership Requirements

Recognizing a Partner



Donee as a Partner

Trusts as Partners

Minor as a Partner

Purchased Interests

Capital Interest in the Partnership

Capital as a Material Income-Producing Item

Source of Capital

Family Partnerships Not Within §704(e)

Real Estate Family Partnerships

Business Family Partnerships

Structuring the Family Partnership

Limited Liability Company

Outside Basis & Debt Share Advantage

Substantial Economic Effect Rules

Discharge of Indebtedness Income

Suggested Uses

Professional Firms

Joint Ventures

Substitute for Family Limited Partnership

Retirement Plan

Employer Costs

Profit-Sharing Plan

Money Purchase Pension Plan

Defined Benefit Pension Plan



Chapter 14 - Life Insurance, Annuities & Buy-Sell Agreements


Tax Overview

Income Tax

Transfer for Value Rule

Employee Death Benefit - §101(b) (Repealed)


Lifetime Benefits

Section 72

Estate Taxes - §2042 & §2035(a)


Gift Taxes

Community Property Gift Danger

Types of Life Insurance

Term Insurance

Whole Life (Permanent) Insurance

Straight Life v. Limited Payment

Modified v. Preferred

Endowment Insurance

Universal Life


Premium Payment

Variable life

Investment Accounts


Survivor Life

Single Premium Whole Life


Life Insurance Trust



Deferred Annuity

Private Annuity

Unsecured Promise

Regulations Restrict Private Annuity Income

Buy-Sell Agreements


Contractual Format


Life Insurance Funding

Term vs. Whole Life

Policy Ownership & Premium Payment

Entity & Cross-Purchase Agreements

Tax Consequences - Cross-Purchase Agreements

Non-Deductible Premiums

No Dividend Danger

Tax Consequences - Entity Purchase Agreements

Non-Deductible Premiums

Dividend Danger - §302

Exception to Dividend Treatment

Constructive Ownership (Attribution) Rules

“Estate/Beneficiary” Rule

“Family/Trust/Corporation” Rule

No Gain on Sale

Estate Tax Valuation

Using the Buy-Sell Agreement to Set Value

Enforcement of Contract Price

Purchase Price & Terms


Community Property

Professional Corporations

Marketability Problems

Controlled Disposition

S Corporations

Sole Shareholder Planning

Complete Liquidations

Alternative Dispositions

Use of Life Insurance

Estate Valuation

One-Way Buy-Outs

Chapter 15 - Special Business Issues

Business Valuation

Relevant Facts

Revenue Ruling 59-60

Tangible Assets

Special Real Estate Election - §2032A


Related Party Cash Lease

Intangible Assets & Goodwill

R.R. 68-609

Qualified Family-Owned Businesses - §2057 (Repealed)

Deduction Amount



Material Participation

Determining 50+% of AGE

Interests Acquired From the Decedent


Trade or Business Requirement

Sunset Provision

Land Subject To Conservation Easement - §2032A(c)(8)

Family Member

Indirect Ownership of Land

Qualified Conservation Easement

Qualified Real Property Interest

Qualified Organization

Conservation Purpose

No Additional Income Tax Deduction

Valuation Discounts

Minority Interests

Special Valuation Plus Minority Discount

Fractional Interests

Lack of Marketability

Swing Vote Premium

Buy-Sell Agreements

Redemptions Under §303


Corporate Accumulation For §303 Redemption

Accumulation in Anticipation of Shareholder’s Death

Death of a Spouse

Bypass Trust

Lifetime Dispositions

Stock Redemptions Under §302

Substantially Disproportionate Redemption - 80/50 Rule

Redemptions Not Essentially Equivalent to a Dividend

Complete Redemptions

Constructive Ownership - §318

Double Attribution

Stock Attribution in Complete Redemptions

Stock Recapitalization

Section 306 Taint

Deferred Compensation Agreements

Chapter 16 - Estate Freeze Rules


Corporations & Partnerships - §2701


Member of the Family

Applicable Family Member

Applicable Retained Interest


Exceptions To §2701

Zero Value Rule

Qualified Payment Exception to Zero Value Rule

Valuation of Qualified Payments - Lowest Value Rule

Cumulative but Unpaid Distributions - Compounding Rules

Taxable Events

Amount of Increase


Applicable Percentage

Transfer Tax Adjustment

Election into Qualified Payment Treatment

Election Out of Qualified Payment Treatment

Minimum Valuation of a Junior Interest


Junior Equity Interest

Equity Interest

Value of Other Rights

Capital Contributions, Redemptions, & Recapitalizations

Attribution Rules



Estate & Trust

Siblings & Lineal Descendants

Transfer Tax Adjustments

Splitting Retained Interests

Subtraction Method

Three-Step Computation

Valuation Adjustment

Transfers of Interests in Trust - §2702


Applicable Family Member

Member of the Family

Transfer in Trust

Term Interest


Zero Value Rule

Qualified Interest

Exceptions to §2702

Incompleted Gift

Term Interests

Successive v. Concurrent


Joint Purchases

Term Interests in Tangible Property

Transfers of Interest in Portion of Trust

Buy-Sell Agreements & Options - §2703

Exceptions to §2703

Arm’s Length Bargain

Substantial Modifications


Lapsing Rights & Restrictions - §2704


Member of the Family


Voting Right

Liquidation Right


Amount of Transfer

Restrictions on Liquidations Disregarded

Attribution Rules

Chapter 17 - Elderly & Disabled Planning

Managing the Estate

Joint Tenancy


Durable Power

Revocable Living Trust

Catastrophic illness



Countable Assets

Non-Countable Assets

Personal Residence

Gifting the Residence - General Rule


Inaccessible Assets


Spousal Transfers

Spousal Allowance

Medicaid Trusts

Limited Trust Exceptions

Criminalization of Medicaid Asset Transfers

Private Insurance

Health Care Decisions

Supplemental Security Income


Unearned Income

Earned Income

Exempt Income


Countable Assets

Non-Countable Assets

Disability Benefits


Kidney Disease


Chapter 18 - Post-Mortem Planning & Tax Return Requirements

After Death Planning

Alternate Valuation Election

Special Use Valuation

Election to Defer Payment

Final Medical Expenses

Administration Expenses

QTIP Election


Federal Returns

Form 1040 - Decedent’s Income Tax

Form 1041 - Estate’s Income Tax

Form 706 - Decedent’s Estate Tax

Carryover Basis Election & Information Return For 2010

Decedent’s Estate Tax - Form 706

Filing Requirements

Paying the Estate Tax

Section 6161

Section 6166

Section 6163

Overview of Form 706


Preparing the Form 706

Form 706, Part 1, Page 1 - Decedent & Executor

Form 706, Part 3, Page 2 - Elections by the Executor

Form 706, Part 4, Pages 2 & 3 - General Information

Schedule A, Page 5 - Real Estate

Schedule A-1, Pages 6 thru 9 - Section 2032A Valuation

Schedule B, Page 10 - Stocks and Bonds

Schedule C, Page 11 - Mortgages, Notes, and Cash

Schedule D, Page 12 - Insurance on Decedent’s Life

Schedule E, Page 13 - Jointly Owned Property

Schedule F, Page 14  - Other Miscellaneous Property

Schedule G, Page 15 - Transfers During Decedent’s Life

Schedule H, Page 15 - Powers of Appointment

Schedule I, Page 16 - Annuities

Schedule J, Page 17 - Funeral and Administration Expenses

Schedule K, Page 18 - Debts of Decedent, and Mortgages and Liens

Schedule L, Page 19 - Net Losses During Administration and Expenses Incurred in Administering Property Not Subject to Claims

Schedule M, Page 20 - Bequests to Surviving Spouse

Schedule O, Page 21 - Charitable Gifts and Bequests

Schedule P, Page 22 - Credit for Foreign Death Taxes

Schedule Q, Page 22 - Credit for Tax on Prior Transfers

Schedules R & R-1, Pages 23 thru 27 - Generation-Skipping Transfer Tax

Old Schedule T Gone - Qualified Family-Owned Business Interest

Schedule U, Page 28 - Qualified Conservation Easement Exclusion

Form 706, Part 5, Page 3 - Recapitulation

Form 706, Part 6, Page 4 - Portability of Deceased Spousal Unused Exclusion (DSUE)

Form 706, Part 2, Page 1 - Tax Computation

Schedule PC, Pages 29 - 31 - Protective Claim for Refund

Discharge from Personal Liability

Estate Income Tax Return - Form 1041

Filing Requirements

Schedule K-1

Tax Computation

Exemption Deduction


Statute of Limitations

Accounting Methods

Taxable Year

Double, Split & Solo Deductions

Decedent’s Final Income Tax Return - Form 1040

Preceding Year Return

Filing Requirements


Form 1310

Joint Return with Surviving Spouse

Request for Prompt Assessment

Included Income

Partnership Income

S Corporation Income

Self-Employment Income

Community Income

Interest & Dividend Income

Exemptions & Deductions

Medical Expenses

Election for Decedent’s Expenses

Making the Election

AGI Limit

Medical Expenses Not Paid By Estate

Insurance Reimbursements

Deduction for Losses

At-Risk Loss Limits

Passive Activity Rules

Gift Tax Return - Form 709



Extension of Time to File

Extension of Time to Pay

Split Gifts

Special Applications & Traps

Bargain Sales

Below Market Loans


Net Gifts

Promises to Make a Gift


Stock Certificates

Promissory Notes

Powers of Appointment



CPE Taxes Course: https://www.cpethink.com/tax-cpa-courses
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