You got this! Flashcards

1
Q

interest on installment note

A

deductible from BUYER income

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2
Q

installment note at death

A

in SELLER gross estate

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3
Q

GRAT

A

FUTURE interest gift

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4
Q

community property

A

CA TX
WI WA
LA ID
AZ NV New Mexico

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5
Q

retirement planning

A

at least 5 years prior to retirement

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6
Q

loan from life insurance cash value

A

NO income tax at time of loan

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7
Q

life insurance proceeds included in estate

A

incident of ownership

payable to estate

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8
Q

residuary trust planning

A
  1. exemption ($11.82)

2. marital deduction

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9
Q

lump sum insurance

A
  • burial, travel, bereavement
  • 6/12 living expenses
  • legacy plan. inheritance
  • buy/sell
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10
Q

gift to closely held business

A

future interest (no annual exclusion)

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11
Q

charitable deduction on AGI

A

60% AGI

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12
Q

Code of Ethics

A
integrity
objectivity
competence
fairness
confidentiality
professionalism
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13
Q

312(I)

A

= savings program for employees not eligible to participate in State Retirement System

   - money-purchase
   - tandem
   - target benefit
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14
Q

neoclassical economic theory

A

full info, utility max, rational preference

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15
Q

S corp taxation

A

losses deductible by shareholder

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16
Q

cross-purchase

A
premium: after tax $
buyer tax (income tax): basis = purchase price
17
Q

annual gift exclusions

A

NOT included in estate tax computation

18
Q

charitable adjustments

A

= deduction

  1. business expense of business owner
  2. loss of sale
  3. alimony
19
Q

QTIP

A

DECEASED SPOUSE (1st to die) decides who remained beneficiary (remainder interest)

20
Q

private annuity

A

NO estate tax

21
Q

sprinkle trust

A

ONLY while alive

22
Q

living trust (intervivos) –> irrevocable

A

NOT probate avoidant

** living trust/ revocable (will) never avoids probate

23
Q

child resources before age of majority

A

INCLUDED in eligibility income tax

24
Q

legal and appraisal fees in divorce

A

NOT deductible for federal income tax

25
parents income before 18 (minor)
INCLUDED in income limitation
26
straw man
Intentionally misrepresented proposition/ no integrity
27
ABLE
max contribution = adjusted ANNUALLY (for inflation) | asset allocation = adjust BIANNUALLY
28
Medicaid resource test
cash value of life insurance vehicle
29
property settlement in divorce
= DIVISION (not gift)
30
installment note
= lock in value 1. regular 2. annuity 3. SCIN
31
establish REVOCABLE
NOT completed gift
32
inheritance
separate property in divorce
33
capital gain exclusion
before two years and move for job = prorated months/ 24 x 250
34
fringe benefits (extra)
only C corp
35
entity type
life insurance increases value of business --> increasing estate tax of owners