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Danko Self-created > Quiz 3 > Flashcards

Quiz 3 Flashcards

1
Q

If a family has more than one child in college in same year, can they apply for multiple AOCs?

A

yes. $2500 for first four years of college

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2
Q

is there an age limit for the Lifetime Learning Credit?

A

no

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3
Q

What’s the Lifetime Learning Credit maximum per year?

A

$2,000

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4
Q

How long after close of fiscal year do federal covered advisers have to update their ADV forms?

A

90 days (fed)

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5
Q

How often can you elect the Section 121 exclusion?

A

no more than every 2 years

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6
Q

What happens to a gift of cash to an irrevocable living trust?

A

it’s removed from the gross estate for federal estate tax purposes

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7
Q

What is the deductibility of a loss from a non-publicly traded partnership?

A

none, as a loss. it’s a passive loss. Can only take it when the partnership is sold or at holder’s death.

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8
Q

What’s a 125 plan?

A

FSA

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9
Q

What triggers transfer for value rules?

A

selling a policy to anyone but the insured

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10
Q

Are K-1s and schedule C income considered earned?

A

no

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11
Q

Recapture of 72(t): what do you have to pay?

A

10% of total payments received before age 59-1/2 and interest.

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12
Q

For spousal or deductible IRA purposes, does it matter if the plan you’re an active participant in is qualified or not?

A

no it doesn’t.

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13
Q

PIA

A

primary insurance amount

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14
Q

FRA

A

full retirement age

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15
Q

Reducing benefits formula

A

months before FRA, reduced $1 for every $2, 18240

during fra year, 1 for ever 3 over 48000

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16
Q

QHEE

A

qualified higher education expense

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17
Q

QTP

A

qualified tuition program

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18
Q

Two types of 529s

A
  1. College savings

2. Prepaid tuition

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19
Q

Keys: College savings (8)

A
  1. invested, risk tolerance, market based perf
  2. parents/grandparents’ asset
  3. open enrollment
  4. includes grad
  5. not just tuition & fees
  6. out of state ok
  7. not state guaranteed
  8. refunds (huh?) return inv, but earnings 10%penalty (prob if not used for educ0
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20
Q

Keys: Prepaid tuition (8)

A
  1. tracks tuition infl, risk averse
  2. parent/grandparent asset
  3. could be just underg4ad
  4. tuition & fees only
  5. in state may be better
  6. not necc state guaranteed
  7. choice of school impacts inv return
  8. refunds no penalty
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21
Q

Particular of the $75K gifting limit

A

an individual can gift 5 years in advance. that uses up the gift exclusion for gifts to the bennie of the 529 for 5 years. if you go over that within 5 years — gift tax

22
Q

Can couples each do the $75k to 529?

A

heck yeah

23
Q

Can couples go over 75k or 300k to gift to multiple children?

A

yes. $75,000 per person per gift. gift splitting. multiple children. in book example up to 600k, more.

24
Q

How many times can you do a 529 rollover in 1 year?

A

once. not that anyone would do more. or even that much.

25
Q

can you withdraw from 529 for before college tuition?

A

yes, K-12

26
Q

can you pay student loan from 529

A

yes, up to $10,000 lifetime

27
Q

What’s the most that can be contributed to a Coverdell from all sources for one indiv child?

A

$2,000

28
Q

Insurable interest

A

a right or relationship to the insured property so that it will suffer financial loss from a loss

29
Q

How much of income will most disability carriers issue?

A

50-60%

30
Q

Is land insured?

A

no

31
Q

HO-8

A

older home

32
Q

HO-4

A

renters

33
Q

HO-6

A

condo owner

34
Q

What happens when the amount of the insurance carried is less than 80% of the dwelling’s replacement cost?

A

insurer will pay greater of:

  1. ACV (actual cash value)
  2. the formula (see card)
35
Q

What’s the Property Loss Calculation Formula

A

(insur carried/ins req x loss)- deductbl = amt paid

36
Q

Insurance required formula

A

replacement cost x coinsurance percentage (80) = ins required

37
Q

Is Required percentage always 80?

A

no, sometimes 90% for commercial

38
Q

Where’s Property Loss Calculation in the books?

A

Insurance 3-7 to 3-8

39
Q

In an FMV < basis gift question, what are two outcomes you have to think about for taxability?

A
  1. amount of gift – gift tax

2. basis (adjusted) – cap gains tax

40
Q

Where is the FMV < Basis info?

A

Estate 3-3 and 3-4

41
Q

What’s the capital gains basis on a gift that is given when FMV < basis if it goes down?

A

the loss is determined by LESSER of date of gift FMV or original basis

42
Q

What’s the taxability if the gift is sold between donor’s basis and FMV date of gift, what’s the tax status?

A

neither gain nor loss is realized

43
Q

Is there still a corporate AMT?

A

no, repealed TCJA 2017

44
Q

Amount of income exempt from AMT

A

Joint filers: $113,400 Indiv filers: $72,900

45
Q

What happens if you contribute over 60% of your AGI to charity?

A

excess contribution is carried forward as an itemized deduction for 5 years or death (if sooner)

46
Q

Six-year deduction window for charitable donation

A

five year carryover plus the year of contribution

47
Q

what distinguishes a revocable living trust?

A

book no detail, i guess it’s revocable and while the grantor is living

48
Q

Name two probate avoidance strategies

A

Revocable trusts, inter vivos trusts

49
Q

Methods of property transfer at death

A
  1. Transfers through probate
  2. Transfer by operation of law (JTWROS)
  3. Transfers through trusts
  4. Transfers by contract (beneficiary)
50
Q

Advantage of revocable trust over …NOT

A

trustee may be recognized over durable power

also, trust continues after death

51
Q

Taxable termination

A

no $15k annual exclusion
termination of a non-skip person’s interest in income or principal of a trust, result: skip persons are only remaining beneficiaries

Danko Self-created (10 decks)

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