Shortcut

Question 0

AMT shortcut

amt compared to regular tax

Answer 0

if reg tax after credits equals or exceeds the tentative min tax, then NO AMT is required

if regular tax is less than tentative min tax then the diff is the amt payable

Question 1

Alimony Shortcut

Answer 1

$37,500 excess alimony 1,2nd yr none in 3rd
1) 70,000+50,000 = 120,000 - 37,500 = 82,500

if 3rd yr 10,000.

1) 10,000 X2= 20,000
2) 37,500 + 20,000 = 57,500
3) 120,000 - 57,500 = 62,500

Question 2

How much self-employment pay?

Answer 2

5,000 x .1413= 706.5

earned income X 14.13

Question 3

The best transfer arrangement for the test for unmarried couples and same sex partners are

Answer 3

revocable trust
tenancy-in-common

wrong answer: will, JTWROS

Question 4

Mortgage: If client is in the 28% tax bracket what is the net after tax mortgage payment

Answer 4

end mode
12/pmt 
PV = 100,000
I = 11
G-N = 30
PMT = ?  952.32
952.32x12= 11,428
1st year very little paid down
round 11,000x.28 = 3,080
11,428-3080  = 8,348

Question 5

DDM Shortcut
When the dividend growth rate is split (2 stages of growth) always begin with the 2nd growth rate to calculate the DDM value, then use one of the 2 methods below

Answer 5

1 if the 1st growth rate is LOWER than the second growth rate, choose the next lowest number in the answer.

Question 6

Think triangle Fed Funds rate and Discount rate how to remember

Answer 6

Bank to Fed = discount rate

Bank to Banks = Fed Funds

Question 7

How much can sole proprietor contribute to his Keogh plan? His business will produce 50,000 in net earnings?
If question states a 15% money purchase plan…. 12.12
If question states a 25 % money purchase plan… 18.58

Answer 7

.1212 X 50,000 = 6,060

.1859 X 50,000 = 9,295

Question 8

Permitted disparity DB and DC
Defined Benefit:
permitted is the lesser of the base or 26.25
ex: Db plan with base of 24.25, permitted disparity = 24.25+ 24.25 = 48.5

Defined Contribution:
Base (generally) 10%, permitted disparity = + 5.7% = 15.7%

Answer 8

remember
DB = 24.5
DC = 5.7
should be a right answer in there

Question 9

NHCE and HCE
		NHCE	HCE
Deferral       1% X 2=  2%
		    2% + 2 =  4%
		    3% + 2 =  5 %

Answer 9

multiply if 1 and add 2 moving up

Question 10

Margin Maint Requirement.
buy 1000 shares, $50 on Margin. Brokerage house is requireing a 30% maint margin requirement. At what pper share price will get a margin call if stock falls?

Answer 10

Shortcut.

2/3 of 50, round up

Question 11

Covariance = 0
add the 2 risks, divide by 2 and round down
If they answers are close 11, 10, choose the second lower7.5

Answer 11

see above

Question 12

What is the Duration problem, it is going to be close to the maturities. maturities = 10, 9.9 is too close, pick 8.2.

Answer 12

see above

Question 13

How much self-employment tax is owed? = Sole Proprietor

30,000 net income

Answer 13

30,000 X .1413 = 4,239