Wrong Answers Flashcards
Excess Alimony
Amount that exceeds required amount. Is it deductible pre-19?
Gift Splitting - how is it filed?
Form 709 - each spouse must file their own if gift splitting done
Options for RMDs when spouse more than 10 yrs youger:
- Joint and Last Survivor table would be more favorable
- (or) the new uniform life expectancty table
ONLY POSSIBLE WITH SPOUSES
Is an ESOP qualified?
Yes
Are IRAs /SEP / SARSEP qualified?
NO
NPV
- Can be negative or positive
- the calculation discounts unequal CFs at a required rate of return less the initial cost of the investment
Can you disclaim JTWROS?
Yes
Benefit of Investing in a Rental Bldg
- enables depreciation deduction to offset rental income on an asset that can appreciate in value over time
AMT Add-back Items
- The bargain element on exercised ISO
- local & state income tax
- advisor fees are no longer deductible
AMT Preference Items
- Private-activity municipal bond interest
- Percentage depletion from oil and gas drilling program
IPOD
When can funds be commingled?
Only when other clients’ money in a common investment fund
Zero Cpn Bond and Duration
Duration = maturity
- when held up against to other bonds with the same D then it will be more sensitive to i rates
- smaller cpns have more volatility than bonds with same maturity bong higher rates (duration shorter when rate highers)
Gifting of Bus via CS to a child - needs income in retirement years. What a happens when the owner converts to PS and gifts CS what is the result?
The value of the CS for gift tax purposes will be based on the dividends paid on the PS
Tactical Investing
Reallocating portfolio due to changes in market conditions
To Lease a car or not to
Based on opportunity costs:
First, Determine the break even return on the investment
If investing can outperform the breakeven return, it make sense to lease the car.
