QAFP Review

Question 1

Non arms length sale, best practice and bad outcomes

Answer 1

gift it away or sell it for fmv. otherwise, seller is deemed to have sold for fmv and buyer has acb according to what they paid. if you sell for too much to artificially raise acb for child, they are deemed to have acquired at fmv and seller pays based on proceeds.

Question 2

when do leases normally begin? (BGN or END?)

Answer 2

BGN

Question 3

Credit Union Coverage

Question 4

Policy loans ltv and interest costs and deductibility

Answer 4

interest is deductible, ncpi or premiums paid, whichever is less. interest can be capitalized, 75-90 ltv for whole life and 45-70 for universal