3 b

Question 1

Ret Accts tax

Answer 1

grow tax deferred - no cap gains tax

Question 2

Ret Accts

constructive receipt

Answer 2

when take $ out

taxed at ord income

Question 3

Ret Acct

penalty tax

Answer 3

10% if take $ prior to 59 1/2

Question 4

Corp taxes

conduit

Answer 4

pass thru investment

pass div to shareholders

must pass 90% income

Question 5

List retirement accts

Answer 5

IRA

401k

403b

Keosh

Question 6

corp div rcvd from other co taxed

Answer 6

30% of amt rcvd

owner of 20% corp can exclude 80% income from tax

Question 7

Fannie Mae & Freddie Mac

tax

Answer 7

corp & taxed at all levels

Question 8

Accrued Int

Answer 8

taxable income to seller

buyer deducts

Question 9

mutual funds

Answer 9

div taxable during year of distribution

even if reinvested

Question 10

foreign taxes

Answer 10

taxed in citizens country

if foreign taxed can take credit

Question 11

CAV =

Answer 11

Compound Accreted Value = cost basis

Question 12

bonds in secondary mkt

annual accredition

Answer 12

taxed as ord income

Question 13

bonds taxed as of what date

Answer 13

payable date

Question 14

AMT% int on bond proceeds to private entities

Answer 14

10

Question 15

Which Investments are taxed at ord income?

(4)

Answer 15

REITs
Corp Bonds
Var Annuities
Fixed Annuitites

Question 16

Which investments will have capital gains tax?

Answer 16

stocks & bonds

Question 17

Which investments will not have capital gains tax?

Answer 17

Mortgage backed

Annuities & Insurance

DPPs/ Limited Partnerships Tax Shelter