|Author :||Danny C Santucci, JD|
|CPE Credits :||38.0|
|IRS Credits :||38|
|Passing Score :||70%|
|Course Type:||NASBA QAS - Text - Technical - NASBA Registry - IRS Enrolled Agents|
|Primary Subject-Field Of Study:||
Taxes - Taxes for Course Id 759
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 :||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 :||24-Sep-2021|
|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 - Technical - 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.ASSIGNMENT SUBJECT
Chapter 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. Determine the tax consequences of title holding methods by:
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.
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
* Rules of management
* Managing risk
After reading Chapter 2, participants will be able to:
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:
* Tracking spending
* Building savings
* Designing a budget
* Determining worth
* Analyzing net worth
* Tax planning tactics
After reading Chapter 3, participants will be able to:
2. Specify why individuals should take primary responsibility for the 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:
* Related party exchanges
* Personal & multiple property regulations
* Delayed (deferred) exchange regulations
* Actual & constructive receipt rule
* Qualified contribution plans
* Tax-deferred annuities
* Installment sales
* At-risk rule
* Deferred compensation and options
After reading Chapter 4, participants will be able to:
2. Specify the related party §1031 restrictions identifying prohibited parties or entities and 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:
* Low Income Housing Credit & Child & Dependent Care Credit
* Estimated taxes
* 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 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:
* Deductible business expenses
* Home-office deduction
* C or regular corporations
* S corporations
* Family partnerships
* Kiddie tax trap
* Childcare & education
* Interest-free loans
After reading Chapter 6, participants will be able to:
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:
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.
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:
* 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 the Chapter 7, participants will be able to:
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.
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.
Chapter 8 Asset Protection
At the start of Chapter 8, participants should identify the following topics for study:
* Types of creditors
* Fraudulent transfers
* Preparation for asset protection
* Types of insurance
* Buy-sell agreements
* Individual ownership and corporate ownership
* Asset protection aspects of trusts
* Co-tenancy and partnerships
After reading Chapter 8, participants will be able to:
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.
3. Specify fraudulent transfer laws listing badges of fraud, 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:
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.
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.
Chapter 9 Estate Planning
At the start of Chapter 9, participants should identify the following topics for study:
* Legal documents
* Estate planning team
* Estate administration
* Transfers within probate
* Transfers outside probate
* Transfers using a trust
* Special planning tools
After reading Chapter 9, participants will be able to:
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:
* IRS valuation
* Estate tax return & payment
* Tax basis for estate assets
* Generation-skipping transfer tax
* Application of gift taxes and valuation
* Gift tax annual exclusion
* Gift tax marital and charitable deductions
* Gift tax advantages and disadvantages
* Shifting income & gain
After reading Chapter 10, participants will be able to:
2. Determine what constitutes a taxable estate under §2501 specifying what assets are included in a gross estate using basic categories of property and transfers.
3. Specify estate deductions allowed under federal estate tax law stating their tax advantages and disadvantages.
4. Determine the value of a decedent’s assets using permitted elections, recognize the use of Form 706 to pay any estate tax due, 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:
* Requirements of wills
* Executors and guardians
* Types of wills
* Title implications
* Changes to a will
* Advantages of a will
* Simple will
* Probate pros and cons
* Probate avoidance
After reading Chapter 11, participants will be able to:
2. Identify 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:
* Common elements of trusts
* Types of trusts
* Living trusts
* Income tax & trusts
* Gift tax & trusts
* Estate tax & trusts
* Identification, recital & property transfer clauses
* Income and principal & revocation and amendment clauses
* Trustee and trust termination clauses
After reading Chapter 12, participants will be able to:
2. Specify recommended living trust provisions, 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:
* Trusts holding title & business trusts
* Co-tenancy taxation, percentage interests & partition
* Partnership taxation & recapitalization
* Family partnerships
* Limited liability companies
* Retirement plans
After reading Chapter 13, participants will be able to:
2. Identify the title holding benefits of trusts, co-tenancy, partnerships, and limited liability companies and the tax characteristics of each, 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:
* Life insurance trusts
* Deferred annuities
* Private annuities
* Buy-sell agreements
* Purchase price & terms
* Community property
* Professional corporations
* S corporations
* Sole shareholder planning
After reading Chapter 14, participants will be able to:
2. Identify the tax treatment of life insurance proceeds by:
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.
4. Recognize the differences between deferred annuities and private annuities and determine what constitutes an entity purchase agreement and a cross-purchase agreement and their tax and legal advantages.
Chapter 15 Special Business Issues
At the start of Chapter 15, participants should identify the following topics for study:
* Business valuation of qualified family-owned businesses
* Business valuation of land subject to a conservation easement
* Business valuation discounts
* Buy-sell agreements
* Death of spouse
* Stock redemptions
* Stock recapitalization
* Deferred compensation agreements
After reading Chapter 15, participants will be able to:
2. Determine how tangible assets are normally valued identifying those assets whose valuation is based on values other than book value, and specify the steps in R.R. 68-609’s valuation formula for intangible assets 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:
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.
Chapter 16 Estate Tax Freeze Rules
At the start of Chapter 16, participants should identify the following topics for study:
* Corporations, partnerships & exceptions
* Qualified payment exception to zero value rule
* Minimum valuation of a junior interest
* Capital contributions, redemptions & recapitalizations
* Attribution rules
* Transfers of interests in trust
* Term interests & joint purchases
* Buy-sell agreements & options
* Lapsing rights & restrictions
After reading Chapter 16, participants will be able to:
2. Identify the “zero value” rule under §2701 by:
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.
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.
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:
* Medicaid & countable assets
* Medicaid & non-countable assets
* Medicaid & inaccessible assets
* Private insurance
* Healthcare decisions
* Supplemental Security Income
* Income & assets
* Disability benefits
After reading Chapter 17, participants will be able to:
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.
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:
* Federal returns
* Decedent’s estate tax
* Preparation of Form 706
* Estate income tax return
* Filing requirements of decedent’s final income tax return
* Included income
* Exemptions & deductions
* Filing the gift tax return
* Special applications & traps of the gift tax return
After reading Chapter 18, participants will be able to:
2. Cite the due dates of post-mortem federal forms, specify the filing requirements of a decedent’s estate tax return, and identify exceptions to the general rule of estate tax payment.
3. Determine the processes and procedures necessary in the preparation and filing of Form 706.
4. Identify the filing requirements for estate income tax and decedent’s final income tax returns by:
b. Specify the use of Form 1310 for a decedent or a joint return for a decedent and his or her surviving spouse.
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 -
Chapter 2 -
Chapter 3 -
Chapter 4 -
Chapter 5 -
Chapter 6 -
Kiddie Tax - §1(g)
Chapter 7 -
Chapter 8 -
Chapter 9 -
Chapter 10 -
Alternate Valuation - §2032
Chapter 11 -
Chapter 12 -
Chapter 13 -
Chapter 14 -
Chapter 15 -
Chapter 16 -
Chapter 17 -
Chapter 18 -
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