Chapter 3- Customer Accounts- Objectives And Tax Issues Flashcards
What happens to losses that remain after offsetting gains and also taking $3,000 against ordinary income?
They are carried forward to subsequent years.
What is not permitted when opening an account, a client’s educational or financial background?
Educational background
True or False: Using a P.O. Box as an address is not acceptable when opening an account.
True. An actual address is required; however, mail may be sent to a P.O. Box.
Is a gift of $30,000 per married couple, per year, exempt from gift tax?
Yes
If a client wins $1 million, what should a RR do?
Update the account form.
Regressive taxes are also referred to as ___________ taxes.
Regressive taxes are also referred to as flat taxes.
What is the first use if capital losses?
They are first used as deductions against capital gains.
Is a gift of $14,000 per person, per year, exempt from gift tax?
Yes
Progressive taxes are also referred to as ___________ taxes.
Progressive taxes are also referred to as graduated taxes.
What are the capital gains tax rates?
Short-term gains are taxed at ordinary income rates, and long-term gains are taxed at a maximum of 20%
If an asset was held for one year or less prior to its sale, any gain or loss would be __________.
If an asset was held for one year or less prior to its sale, any gain or loss would be short-term.
Sales tax is an example of a _____________ tax.
Sales tax is an example of a regressive or flat tax.
How large can a gift be between spouses and remain exempt from the gift tax?
An unlimited amount
Income and estate tax are examples of a _________ or _________ tax.
Income and estate tax are examples of a progressive or graduated tax.
For a gain to be considered long-term, the asset must be held for ___________.
For a gain to be considered long-term, the asset must be held for more than one year.
