1 Reminders

Question 1

Basic reminders

Answer 1

If extra time on the intro write this down on a piece of scratch.

Blink and drink every 20 questions

Don’t do math in my head

Rtfq rtfa. Highlight not except most least, ages

Cross out incorrect but read ? AGAIN. Be careful

Flag for later if it’s going to take more than 2.1
watch the clock

Take deep breaths
Remember a later section will be easier. Do not give up

Question 2

RTFQ RTFA
Highlight ages dates words like not except etc . Cross off incorrect

Answer 2

WHO are they taxing?
Individual, estate, trust, parent, child, entity
Remember it might give a bunch of state or trust information and then say how much is taxable to the person or vice versa be careful about which entity or person is being taxed

WHAT are they asking
The taxable amount, the tax-free amount
The ordinary income amount, the long-term capital gain amount, the total capital gain amount, the capital loss and remember the limitation of 3k.
Are they asking how much of the capital loss you take this year how much is carried forward or how much in total you have.

WHEN
And watch at what point in the year they’re already at especially on insurance questions.
This year,next year, or on rmds are they asking how much you take during 2025 or are they asking how much you take designated for 2024 etc

Question 3

Watch out for

Answer 3

Nonmecs. Fifo

Skip persons and GST

S1231 loss is ordinary not capital. Don’t net it in CG ?

Don’t assume there’s penalties on everything under 59.5. Think. For example there is not a penalty for using ee bonds to pay for something other than education. They simply just don’t get the exclusion

Question 4

Watch the basis versus earnings

Answer 4

And
Remember for Roth IRAs and for annuities there is no penalty on the basis taken out before 59 and a half

Question 5

Case study strategy

Answer 5

Cases
1. Count the ?s. Write down time click and est finish time.
2. Read the ?. Highlight & write
A. Highlight most least except not
B. If several write down the basics
3. Skim the case highlighting
ages, dates, numbers spelled out, relevant info
4. Back to ?s and case
A. Answer the ones I can
B. Flag the ones I don’t know but cross out wrong
C. If time review. Rtfq, Read the other answers.

Question 6

Case study watch out for

Answer 6

Add group health to balance sheet if they ask for the estate

Gross estate. use assets on the balance sheet. Split joint in 2. Don’t deduct liabilities

Use process of elimination to advantage. For example the stock portfolio descriptions

Just skim don’t read it all a lot of irrelevant info

Question 7

Step 2 BEGIN mode

Answer 7

Always set BGN step 2 for education and retirement unless they specifically state something else. assume they need at the beginning of the year