General Flashcards
What is the recommended “Housing Cost” ratio limit when considering buying a new house?
28%
What is the recommended “Total Debt” ratio limit when considering buying a new house?
36%
What is the recommended “Consumer” ratio limit when considering buying a new house?
20%
What age does an 529 ABLE account have to be established by? What are the reasons one may be established? What is the funding limit?
26; Blindness or Disability; 18k per year
What is the EFC formula?
Income [(Parents % given) + Student (50% after 9,410)] + Assets [Parents (5.64%) + Student (20%)]
What are some key facts about the Lifetime Learning Credit?
Applies per tax return (no matter how many people are associated). Can’t be double dipped (with AOTC). 20% of up to 10k of eligible assets (tuition and fees required for enrollment).
What are the HDHP minimum deductibles and out of pocket max’s associated with HSAs?
HDHP minimum deductible: Self-only: 1,600 - Family: 3,200
HDHP Max out of pocket: Self-only: 8,050 - Family: 16,100
Who are considered qualified beneficiaries for an inherited Ira?
Spouse
Chronically ill beneficiary
Disabled bene
Minor child (under 21)
Individual not more than 10 yrs younger than Ira owner
If a married taxpayer files separately and whose spouse itemizes must…
Also itemize deductions
What does HO-2 cover?
Broad form - basic homeowners coverages
What does HO-3 cover?
Special Form - better homeowners coverage
What does HO-4 cover?
Contents broad form- for tenants/renters (only covers contents)
What does HO-5 cover?
Comprehensive Form - BEST homeowners coverage
What does HO-6 cover?
Unit owners Form - for condo owners
What does HO-8 cover?
Modified Coverage - for older or historical homes only (less coverage)
What does HO-2 cover?
Broad form - basic homeowners coverages
What is Coverage A in a homeowners policy?
Dwelling
Coverage A covers the structure of the home itself.
What is typically the limitation for Coverage B?
10% of Coverage A
Coverage B covers Other Structures on the property.
What does Coverage C in a homeowners policy refer to?
Personal Property
Coverage C typically covers personal belongings within the home.
What is the typical limitation for Coverage C?
50% of Coverage A
This limitation applies to the personal property coverage.
What does Coverage D in a homeowners policy cover?
Loss of Use
Coverage D provides financial support when the home cannot be lived in.
What is the typical limitation for Coverage D?
20% of Coverage A
This coverage helps with additional living expenses during repairs.
What is Coverage E in the liability section of the HO policy?
Personal Liability
Coverage E protects against legal claims for bodily injury or property damage.
What does Coverage F in the HO policy cover?
Medical Payments to Others
Coverage F provides for medical expenses for injuries sustained by others on the property.
