Down to the wire Flashcards
ILIT
NO rights
can only GIFT premium
AMT for business
profit over $250K
inflation risk
period certain immediate annuity
imagination capital
save for a goal (negative emotion if not reach)
Schiller
= volatility puzzle (disputed efficient market)
prices move more than should on earnings and interest rates
2503 (c)
NO crummery provision (add back within 3 years)
prospect theory
- reference dependence
- loss aversion
- nonlinear probability weighting
divorce pension division
QDRO
NOT wait and see
Fama & French
- value ETF can match active manager performance
- stock managers cannot consistently beat market
relative comparison
anchoring
GSTT exemption
$22,360,000
representative bias
“past performance does not predict future results”
NOT completed gift
revocable trust
underperform mutual funds
return chasing
recent info weighting
reference dependence
specific $ amount
behavioral finance
- sunk cost
- availability
- confirmation
sub-optimal decisions
- framing
- heuristics
- bias
disposition effect
lock in gains on winning (unwillingness to sell losses)
qualified disposition from ROTH IRA
prior 59.5, $10,000 for first home
6166
first 5 years are NO interest
* business value must exceed 35%
child/ dependent care credit
limit $3,000 ($6,000 married)
reduce upper-income
child under 13
single-parent home
life insurance
education/ child tax bracket
- American opportunity
- lifetime learning
- child tax credit
POLST
doctor order for sustaining life
provisional income NOT taxes
less than $25,000
exemption for inclusion in state
5% or $5,000
HEMS (not cash)
disclaimer effective
don’t want assets in estate and walk away
**in writing
capital gain exclusion
$250K ($500k couple) for home sale
Code of Ethics
- Objectivity
- Competence
- Fairness
- Confidentiality
- Professionalism
- Diligence
testamentary trust
set up for children after death
*does NOT avoid probate
TCJA
exclusion doubled for period of years
basis
amount tax paid + improvements
1041
1 year after divorce, property transfer not traxable
spousal support
deducted if before 1/1/19
wait to take social
increase 8% per year