Wrong Answer Flashcards by Joseph Cupoli

Whats the formula for PIA?

PIA - [(months prior/180) * PIA]

How well did you know this?

Not at all

Perfectly

What is the max amount of annual contribution to a defined benefit plan?

There is none actuarially determined.

How well did you know this?

Not at all

Perfectly

What is the max annual limit for life annuity under 415 limit

265,000 Or 100% of comp avg last 3 years. Lessor of.

How well did you know this?

Not at all

Perfectly

Whats the steps in calculating pension benefits?

Multiply percentage given by years of service then by average annual compensation.

How well did you know this?

Not at all

Perfectly

Do investment returns affect account balances in a money purchase plan?

How well did you know this?

Not at all

Perfectly

If forfeitures are not reallocated to money plan participants would the employer decrease contributions?

Yes

How well did you know this?

Not at all

Perfectly

In DB plans do forfeitures always reduce employer cont.

Yes

How well did you know this?

Not at all

Perfectly

Must profit sharing plans make cont. that are “substantial and recurring”?

Yes

How well did you know this?

Not at all

Perfectly

What age do you collect Medicare at?

How well did you know this?

Not at all

Perfectly

Which tax form is used to report federal gift taxes

709

How well did you know this?

Not at all

Perfectly

When a gift is split do both spouses have to file when a gift is split?

yes

How well did you know this?

Not at all

Perfectly

Which form is used to file federal estate taxes?

706

How well did you know this?

Not at all

Perfectly

Can the joint and last survivor table for be used if your spouse is 9 years younger than you?

No must be 10 years younger

How well did you know this?

Not at all

Perfectly

Can the joint and last survivor table be used if with a child?

How well did you know this?

Not at all

Perfectly

Is a qualified Stock option plan considered an ISO?

yes

How well did you know this?

Not at all

Perfectly

Is the calculation of discounts unequal cash flows at a required rate of return less the initial cost of an investment NPV?

yes

How well did you know this?

Not at all

Perfectly

Is Portability of an estate exemption when the surviving spouse uses the life time exemption of deceased spouse.?

yes

How well did you know this?

Not at all

Perfectly

If an annuity is immediate does it lose its tax deferral status?

yes

How well did you know this?

Not at all

Perfectly

Does a rental apartment building help with income tax deferral?

yes

How well did you know this?

Not at all

Perfectly

Is private-activity municipal bond interest an add back item for AMT?

yes

How well did you know this?

Not at all

Perfectly

Are NYC income taxes an add back item for AMT?

yes

How well did you know this?

Not at all

Perfectly

Is the bargain element on exercised ISOs add back for AMT?

yes

How well did you know this?

Not at all

Perfectly

Is it better to gift cash than securities to reduce taxes?

Yes Donees basis is higher

How well did you know this?

Not at all

Perfectly

Under CFP Board code of ethics are you allowed to terminate a client relationship if you feel uncomfortable?

yes

How well did you know this?

Not at all

Perfectly

If parents purchase bonds in their names to benefit their child for education would their AGI be a factor during redemption?

Yes if their agi is below a certain threshold then they would be free from Federal tax exposure.

If the coupon is higher does that shorten the duration?

yes

If a client is trading frequently and wants to lower taxes what should they do?

Switch from short to long term.

Is a deductible IRA good for a business owner with low income and wants to reduce his taxes?

Yes.

What form is used for RMDs that were not taken due to personal oversight think eXcise tax?

1040X

Does a gift-leaseback technique offer any discounting?

Is gifting a rental building into a newly established family LP with limited interest with family members good for reducing taxes?

yes

Is a letter of admonition private?

no public on CFP board website

When gifting common stock for gift purposes what is the is based on.

Difference between FMV of corp and agg value of preferred shares.

Is reallocating a portfolio based on market conditions a tactical strategy?

yes

At death of first spouse for SS does the spouse get to take 100% of their spouses benefits?

yes

What's the time frame to use the 10,000 first home from a Roth IRA?

Does PITI remain constant even as the mortgage gets paid down?

yes

How does withdrawals come out for an annuity?

Lifo

What bond feature should a client use if they believe that interest rates will fall?

Call feature if rates are high.

What comes after gross income for calculating getting to AGI?

Deductions and business expenses.

What do you add to Net income for business owners after prior to SE tax?

Dividends and interest.

What comes after SE tax has been taken for a business owner?

IRA deductions

How many months after 62 can a client claim SS?

1 month

When 85% is trigged for a single tax payer for SS what is the income amount?

34,000.

Can you elect basis when transferring stock to charity?

yes

For a marginal tax income bracket of 22% or less what would favor a client more credits or deductions?

credits

How much can a business owner deduct for entertainment?

How much can a business owner deduct for travel?

100%

How much can a business owner deduct for meals?

50%

Are Coverdell cont affected by the cont of a QTP?

If someone gifts money and then dies within 3 years does a portion go back into the gross estate?

yes

What part of auto insurance would cover a collision into a stationary object?

What is contained in the P/E valuation model?

Future earnings X P/E ratio.

If after using the P/E valuation model, the amount is higher then the current stock price. Is the stock underpriced?

yes

What's the biggest risk in establishing an unfunded ILIT?

A transfer in a second to die policy and grantor(s) die within 3 years

Is property of renters excluded from home owners insurance?

Yes doesn't matter where on property.

If a client feels cheated on an investment transaction where do they start?

With Compliance (registered principal).

Can you collect a commission on an ETF with a series 6?

Can you trade mutual funds with a series 6?

yes

Under ERISA rules can a profit sharing plan exclude employees who work fewer than 1,000 hrs per year?

Yes

How many hours is usually required to be part of a employer-provided health insurance plan?

32 hrs

In figuring out a stocks over or under performance based on dividends which formula do you use first?

R = rf + (rm-rf)B

Is interest deductible on a home equity loan that is not used for home improvement?

No must be used.

For a "service" related business what is the min. threshold of income for deductible due to QBI?

464,200

How soon would the CFP board want to know of the certificant's disciplinary action by a regulator ruling to revoke?

10 days.

How is a distribution from a 2503 c minor trust taxed?

Kiddie.

In a situation where a clients health is declining and they have trouble recalling things should you reach out to family member?

No go with a trusted professional, Dr. is better.

Is bunching deductions and using DAFs a good way to lower taxable income?

yes

What is the cutoff age for a child tax credit deduction?

How much of the child tax credit is refundable?

1600

Can famers and insurance companies claim NOL carryback losses?

Yes

Whats the first step in a casualty loss?

FMV or basis lessor of

Whats the 2nd step P&C loss?

Less insurance

Whats the 3rd step in P&C loss?

-$100

Whats the 4th step in P&C loss?

10% of AGI

Can casualty losses be deducted?

Is an exchange for a hotel and a shopping center a fair 1031 exchange?

Yes

What percent can a sole prop deduct as a below the line deduction under 199A?

20%

Can a sole prop take a standard deduction and a business deduction?

Yes passthrough.

Is a casualty loss subject to AGI phaseout?

For business income and a W2 what lessor amounts is their deduction limited to?

20% of business or 50% of W2.

Is there a limit to the child credit of 2,000 based on how many kids you have?

What is the AGI phaseout for the child tax credit?

400,000

Does the retirement savers credit apply to 529 accounts?

No just ABLE or retirement plans

What is the credit amount for Retirement Savings Cont. credit?

2,000(s) 4,000(mfj).

What income level is no credit for retirement savings available?

33,000(s) and 66,000(MFJ).

What does SOFR stand for?

Secured Overnight Financing Rate