GP Missed

Question 1

Excess alimony payments

Answer 1

Difference in payment between years under IRC excess can’t exceed $15,000

Question 2

Which of the following is true about NPV

Answer 2

It’s calculation discounts on nipple cash flows out of required rate of return, less the initial cost of an investment

Question 3

Which investment accomplishes income tax deferral

Answer 3

Rental apartment, building, enables depreciation, deduction to offset rental income

Question 4

I will see you retard individual gifting, two children and grandchildren best asset

Answer 4

Wait until T-bills mature, then give each Tony cash with instructions to buy security

Question 5

Which circumstance can a CFP certificate, commingle client funds

Answer 5

With other clients money in a common investment fund

Question 6

Which of the following is not a form of discipline administered by the CFP Board

Answer 6

Private letter of admonition

Question 7

Gifting, common stock, hoping it won’t be included in a state and will need income result

Answer 7

The value of the carpet shark for gift tax purposes will be based on dividends paid on the preferred stock

Question 8

Buy a car while making returns of 11%

Answer 8

Should consider the opportunity cost of investing the money and leased a car

Question 9

Harry potter has a for your time horizon which investment should he buy

Answer 9

In immunized bond portfolio, it matches the average duration of the portfolio to preselected time horizon

Question 10

Stock selling for $28.50. Estimated future earnings are three dollars per share in the PE ratio is 11 is it over priced or underpriced?

Answer 10

Underpriced using PE ratio
($3x $11= $33)

Question 11

Client believes he was cheated on investment and seek any recourse. How do you recommend a proceed?

Answer 11

Right to the compliance officer of the BD that handled the transaction. They should begin the complaint process through the broker dealers compliance function.

Question 12

Gifted property with a basis of $55,000 FMV on date of gift was $110,000 gift was subject to 40% tax rate. What is Donees adjusted basis

Answer 12

Donees basis will be increased by the gift tax paid by her mother that is a tribute to appreciation

Question 13

What kind of benefits cover the owner and full-time employees and exclude part-time employees

Answer 13

A profit-sharing plan and a simple 401(k)

Question 14

Dr. (AGI $464,201) own service related business what amount of QBI is entitled to on their form 1040

Answer 14

Zero dollars because threshold is $464,200

Question 15

Client can’t recall minivan his activities. What’s your best response?

Answer 15

Under duty of integrity discussed concerns with Andrew’s personal physician

Question 16

Client is a strong believer in life insurance and owns a manufacturing plant which insurance would expose company to corporate AMT

Answer 16

Corporate on life insurance no longer triggers corporate AMT (TCJA)

Question 17

Which exchange of property is most likely to generate the deferral of capital gains income?

Answer 17

The exchange of a hotel for a shopping center the shopping center exceeds the value of the hotel by 1 million. A like kind exchange equipment it’s not eligible for like kind exchange intangibles and mineral rights are not either.

Question 18

Client has AGI of 800,000 and operates an S Corp. can I claim QB I

Answer 18

because text Wynne come exceeds facial threshold of hundred sixty four thousand hundred dollars deduction is limited to lesser of twenty percent of business income or fifty percent of W-2 wages

Question 19

How many hours must CFP certificate complete an ethics

Answer 19

Two hours every two years

Question 20

Client calls about specific stock and asks advisor about opinion. Advisor provided research and client felt more comfortable is advisor fiduciary?

Answer 20

Yes, because advisor gave client advice and must act as a fiduciary with a providing financial planning or financial advice

Question 21

Planner refers clients to older brother and receives lavish gift. What are ramifications

Answer 21

Failing to act with integrity, although planner only receive soft dollars, planner failed to disclose soft dollars as well as family relationship

Question 22

Advisor. Hold CFP designation, but is not associated to any securities firm but Paul ‘s money from clients account which party should client initiate claim

Answer 22

CFP, Board because advisor is not registered with SEOC or with affiliate in a firm

Question 23

Which taxpayer is eligible for retirement savings contribution credit (savers credit)

Answer 23

Married couple AGI 63,000 deferring $7000 into a 401(k) to get match. Savoring credit is designed for low to moderate income tax payers.

Question 24

What rate is used most often as base rate for resetting mortgage rate

Answer 24

SOFR are secured overnight financing rate used as a base rate for many loans 

Question 25

54 years old and receives employer stock Aesop. Employers basis $200k, FMV $500,000. stocks transferred to brokerage account what is tax outcome? What happens if sells for 700k 6 years later? what happens if TJ died?

Answer 25

Tax outcome: OI TAX I on 200,000+10% penalty because before 55.
500,000 long-term capital gains no penalties

Beneficiaries collect anyway tax treatment and have 20% withheld on 200,000

Question 26

Client watches media with energetics stock suggestions which behavior finance is demonstrated

Answer 26

Anchoring investor to be anchored to a guru

Question 27

Two married clients, one seeking divorce because of the other spending and client request meeting

Answer 27

Decline the meeting and consider whether it be appropriate for you to serve both clients as a financial planner going forward because both our clients

Question 28

To client stating for 18 months, one moves into the others house with his personal property be covered in other clients house

Answer 28

No he needs a renters policy

Question 29

If Patricia retitled her home and joint tenants rights of survivorship with boyfriend, is there a taxable event?

Answer 29

Yes, when Patricia adds him to the deed constitutes a taxable gift and counts against her lifetime gift exemption, she made a gift of 1/2 interest in the home

Question 30

What would happen if the boyfriend of the girlfriend with joint tenants rights of survivorship at home died prematurely after retitling

Answer 30

The IRS will try to include the whole value of the home and the boyfriend of state

Question 31

If girlfriend ads a boyfriend to brokerage account did a taxable event occur

Answer 31

No, not until the boyfriend withdraws funds from the account

Question 32

Unmarried clients what legal documents do I need to protect their assets

Answer 32

Domestic partner agreement, addressing dissolution of relationship, revocable, trust, or durable power of attorney

Question 33

can you roll current traditional IRAs, and to Roth IRA’s?

Answer 33

Yes, no AGI limit on conversion

Question 34

Total amount of contribution (deferral, match, profit, sharing, and forfeiture) can be allocated to 401(k)

Answer 34

$66,000

Question 35

Effect of benefits if you make your first claim at 63 instead of FRA at 66 (specific FRa case)

Answer 35

Would lose one dollar of Social Security retirement benefits for every two dollars by which earned income

Question 36

If client wait until full retirement age for first claim of Social Security, what is amount of benefit

Answer 36

Monthly Social Security retirement benefits would reflect 100% of primary insurance amount (PIA)

Question 37

Marriage between two people lasted over 10 years then divorced what age can divorced spouse claim

Answer 37

Can claim reduced retirement benefits at 62