Critical Tax Issues and Money Management Ideas for your Growing, Middle Income Clients

• Chapter 1 - Why Today's Environment Demands Effective Tax and Financial Planning
  • Learning Objectives
  • Introduction
  • How Today's Economic Environment Differs from Recent Past
    • What It All Means
    • How You Can Help
  • What Is "Tax Planning"?
  • What Is "Financial Planning"?
  • How Are Tax Planning and Financial Planning Connected?
  • Horror Stories When People Fail to Make the Connection
  • The Federal Income Tax System in a Nutshell
    • Basic Federal Income Tax Data
    • Determining Your Client's Filing Status
    • Impact of Unfavorable Income-Based Phase-out Rules and Limitations
  • What Is Your Client's Real Marginal Tax Rate?
  • The Alternative Minimum Tax
    • AMT Basics
    • AMT Specifics
    • AMT Adjustments and Preferences
    • The Minimum Tax Credit
    • Refundable Minimum Tax Credit
  • Implications for Tax Planning Strategies
  • Assessing the Client's Current Cash-Flow Situation
    • Estimate Cash Income
    • Quantify Unavoidable Expenditures
    • Quantify Voluntary Expenditures
  • Helping the Client Establish Reasonable Financial Goals
    • Short-Term Goals
    • Intermediate-Term Goals
    • Long-Term Goals
    • Prioritizing Goals
  • Creating Financial Discipline with a Budget
    • Assessing Client's Initial Attempt at Developing a Budget
    • Helping Client Develop a Final Budget
    • Monitoring Budget Compliance
    • Annual Budget Reassessment
  • Increasing Client's Cash Flow by Repositioning Assets
  • Summary
  • Questions
• Chapter 2 - Basic Planning for Income, Deductions, and Credits
  • Learning Objectives
  • Introduction
  • Tax-Saving Deals at the Client's Job
    • Health Insurance Premium Only Plan
    • Health Care Flexible Spending Account
    • Dependent Care Flexible Spending Account
  • Should Client's Spouse Work?
    • Federal Income Tax Impact
    • Impact of Other Taxes
    • Other Negative Tax Impacts
    • Impact of Work-Related Expenses
  • Tax Planning for Employer Stock Options
    • Tax Planning Objectives
    • Regular Tax Impact of Acquiring and Selling ISO Shares
    • AMT Impact of Acquiring and Selling ISO Shares
    • Disqualifying Dispositions of ISO Shares
    • Year-end Disqualifying Dispositions to Avoid AMT Hit
    • But Watch Out for This!
    • Acquiring and Selling Nonqualified Stock Options (NQSOs)
    • Federal Employment Taxes and Stock Options
  • Tax Treatment of Education Expenses
    • When Is Tax-Favored Treatment Available?
    • When Education Fails Tax-Law Standards
    • Deducting MBA Expenses
    • Teacher Education Expenses
    • What About Undergraduate Degree Costs?
    • Remember Higher-Education Tax Credits and Deduction
    • Do Not Overlook Section 127 Educational Assistance Programs
  • Claim Hope Scholarship and Lifetime Learning Tax Credits
    • Hope Scholarship Credit
    • Lifetime Learning Credit
    • Rules Applying to Both Credits
    • Beating the System
  • Write Off College Tuition Costs
  • Deduct College Loan Interest
  • Summary
  • Questions
• Chapter 3 - The Home as a Financial Asset and Tax Shelter
  • Learning Objectives
  • Introduction
  • Should Client Rent or Buy?
  • Evaluating How Much Home the Client Can Afford
  • Evaluating Mortgage Financing Alternatives
    • Adjustable-Rate Loan Versus Fixed-Rate Loan
    • 15-Year Loan Versus 30-Year Loan
  • Evaluating Vacation Home and Timeshare Purchases
    • Vacation Homes
    • Timeshare Interests
  • Tax Deductions for Homeowners
    • Home Mortgage Interest Deductions
    • Home Mortgage Points
    • Real Property Taxes
    • Mortgage Insurance Premiums
    • Deduction for Office in the Home
    • Home Office Used for Self-Employed Business
    • Home Office Used for Work as Employee
    • Storage Space for Self-Employed Sales Activity
    • Home Office Used for Investing Activities
  • Tax Rules for Vacation Homes and Timeshares
    • Vacation Homes
    • Timeshares and Fractional Ownership Arrangements
  • Tax Savings from Home Mortgage Refinancing Transactions
  • Using a Home Equity Loan to Consolidate Client's Debts
    • Traditional Home Equity Loan
    • Home Equity Line of Credit (HELOC)
  • Summary
  • Questions
• Chapter 4 - The Home Sale Gain Exclusion Privilege
  • Learning Objectives
  • Introduction
  • Home Sale Gain Exclusion Basics
  • What Qualifies as Principal Residence?
  • Passing Ownership and Use Tests (Or Not)
    • Co-Ownership By Unmarried Taxpayers
    • Claiming Exclusion on Joint Return
    • Claiming Exclusion after Spouse's Death
    • Special Exception for Unmarried Surviving Spouses May Permit Larger $500,000 Gain Exclusion
    • Periods of Ownership and Use Need Not Be Concurrent
  • Meeting Anti-Recycling Rule (or Not)
  • Excluding Gain from Sale of Land Next to Residence
  • Excluding Gains in Marriage and Divorce Situations
    • Sale After Marriage
    • Sale Before Divorce
    • Sale in Year of Divorce or Later
    • When "Nonresident Ex" Continues to Own Home Long after Divorce
  • Claiming Exclusion for Home Used Partly for Business or Rental
  • Claiming Reduced Exclusion for "Premature" Sales
    • Premature Sale Due to Employment Change
    • Premature Sale Due to Health Reasons
    • Premature Sale Due to Certain Unforeseen Circumstances
    • Premature Sales in Other Situations
    • Premature Sale of Property Used for Business or Rental
    • Reduced Gain Exclusion after Marriage
  • "Electing Out" of Gain Exclusion
  • Other Tax Planning Implications of Gain Exclusion Privilege
  • Impact on Client Recordkeeping
  • Understanding the Tax Implications of Personal Residence Short Sales and Foreclosures and the New Exclusion for Cancellation of Debt Income from Principal Residence Mortgages
    • Tax Rules for Cancellation of Debt Income
    • What If the Lender Forecloses?
    • New Exception for Principal Residence Mortgage Debt Discharges
  • Summary
  • Questions
• Chapter 5 - Strategies for Investments and Retirement Accounts
  • Learning Objectives
  • Introduction
  • Appropriate Asset Allocation Strategies
  • Impact of Rate of Return
    • Relationship between Investment Risk And Asset Allocation
    • Sample Asset Allocation Strategies
    • Laddered Approach to Asset Allocation
  • Mutual Funds and Taxes
    • Who Made a Sale? Not Me!
    • Mutual Fund Share Basis
    • Shares Acquired Via Dividend Reinvestment Programs
    • When Mutual Fund Makes Return of Capital Distribution
    • The Ex-Dividend Date Dilemma
    • Foreign Income Taxes on International Funds
  • Inflation-Protected Investments from the U.S. Government
    • Treasury Inflation-Protected Securities (TIPS)
    • Series I U.S. Savings Bonds (I Bonds)
  • The Wonderfulness of Roth IRAs
  • Evaluating the Roth IRA Conversion Option
    • Direct Retirement Plan Rollovers into Roth IRAs Allowed in 2008 and Beyond
    • Tax Rates on Income Triggered by Conversion
    • Nondeductible IRA Contributions
    • Source of Cash to Pay Conversion Tax Bill
    • Expectations about Future Tax Rates
    • Client's Expected Retirement-Age Financial Position
    • Expected Future Rates of Return
    • Ill-Advised Conversions Can Be Unwound
  • Planning for Retirement Account Rollovers
    • Avoid 20% Withholding Rule
    • Liberalized Rollover Rules
  • Sample Filled-Out Retirement Planning Worksheets
  • Summary
  • Questions
• Chapter 6 - Planning with Life Insurance, Disability Insurance, Long-Term Care Insurance, and Health Savings Accounts
  • Learning Objectives
  • Introduction
  • Basic Risk-Management Considerations
  • Planning for Adequate Life Insurance Coverage
    • Tax Considerations
    • Life Insurance Policy Alternatives
    • Other Important Life Insurance Considerations
  • Planning for Adequate Disability Insurance Coverage
    • How Does Policy Define Disability?
    • What Is Policy's Waiting Period?
    • What Is Policy's Benefit Period?
    • What Is Policy's Qualification Period
    • Is Policy Renewable?
    • Does Client Have Option to Increase Coverage?
    • How Much Does Policy Cost?
    • Taxation of Disability Insurance Benefits
  • Evaluating Long-Term Care Insurance
    • Long-Term Care Insurance Basics
    • Tax Treatment of Benefit Payments
    • Deduction for Premiums
    • Bigger Deductions for Small Business Owners
    • How Much Does Long-Term Care Coverage Cost?
  • Health Savings Accounts (HSAs)
    • HSA Basics
    • Clients Can Rake In Major Tax Savings over the Years
    • Those 55 And Older Can Make Larger Contributions
    • Eligibility Rules
    • FSA/HRA Rollover Privilege
    • IRA Rollover Privilege
    • Employer-Funded HSAs
    • How to Set Up an HSA
    • Conclusions on HSAs
  • Summary
  • Questions
• Chapter 7 - Developing a Personalized Financial Game Plan for the Client
  • Learning Objectives
  • Introduction
  • Comprehensive Checklist to Identify Strategies and Action Items
    • From Chapter 1
    • From Chapter 2
    • From Chapter 3
    • From Chapter 4
    • From Chapter 5
    • From Chapter 6
  • Blank Worksheets from Chapter 1
  • Blank Worksheets from Chapter 2
  • Blank Worksheets from Chapter 3
  • Blank Retirement-Planning Worksheets from Chapter 5
  • Blank Worksheets and Checklist from Chapter 6
  • Summary
• Chapter 8 - Ethics Focus: Taxation
  • Ethics Overview
  • Recent Developments
  • Spotlight on Independence in Tax Services
  • Key Ethical Dilemmas and Judgment Calls
  • Addressing Ethical Dilemmas
  • Available Resources
• Chapter 9 - Latest Developments

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