General Principals Flashcards
Is a Home Equity loan to payoff credit card debt deductible?
No, only for home improvements
If a financial planner is negligent, then negligence is an unintentional what
Tort
If a child has $2700 interest and dividend income in an UTMA account, what is the deduction and what amount is taxed at the child’s rate and what is taxed at the parents rate?
$2700
-$1300 Standard Ded
-$1300 Childs tax rate
= $100 taxed at parents rate
What are compensatory damages?
Damages because of physical injuries or sickness or discrimination
What compensatory damages are tax-free? What is not tax-free?
Tax Free: physical, injuries, sickness, medical expenses for emotional stress
Not Tax Free: discrimination, non-physical, interest earned
What are Punitive Damages?
Punish wrongdoing
Punitive damages are taxable. What is the one exception?
Wrongful death
What is the registration process to sell equity based securities?
Associate with a broker dealer firm
Register with FINRA U4
Pass exams
CRD System
Information on ADV Part 1?
Applicant
Background
Locations
Form of Business
Discipline
Investing Philosophy
What is on ADV Part II?
Nature of business and relationships
Fees
Services
Conflict of interest
Investment strategies
Risk of loss
Brokerage practices
Discipline conditions
Under the consumer credit protection act, what is the limit liability for lost or stolen credit cards?
$50 per card
Note: Per card
What is an agent?
Represents insurance company, has expressed, implied, apparent authority
Insurance, what is a broker?
Intermediary
Represents policy owner
Insurance, what is express authority
Written direction from insurance company
Insurance, what is implied authority?
Public believes
Insurance, what is apparent authority?
Negligence of the principal, allowing an agent to appear to have authority
