About This Chapter
Tax Planning - Chapter Summary
This chapter delves into the processes and considerations of various kinds of taxes. The lessons within go over relevant calculations, laws, and terminology. Topics include personal tax planning, at-risk rules, U.S. tax law, as well as all of the following:
- Income taxes and personal investments
- Tax liability and deductions
- Calculations of business income tax
- Regulations and forms of trust and estate income tax
- Defining and exemplifying alternative minimum tax
- The impact of real estate transactions on taxes
- The definition and laws of tax shelters and passive activity loss
- The implications of special circumstances on taxes
- Planning taxes for charitable contributions and deductions
The practice quizzes attached to every lesson give you the opportunity to monitor your understanding of each topic before you continue to another. These brief assessments can be taken as many times as you like and can also be printed as worksheets for use away from the computer. At the end of the chapter, you can take stock of your knowledge on a more complete level by means of a practice exam.
1. U.S Tax Law: Overview & Basic Principles
This lesson will explain what the U.S. tax system is. We'll discuss the five basic principles that guide the system and understand how these principles are used to make new tax laws.
2. Income Tax Issues in Personal Investments
In this lesson, we'll define income tax. You'll learn about three types of investments: stocks, bonds and real estate. We'll also discuss the various types of income received from these investments and their tax treatment.
3. Income Tax: Tax Liability & Deductions
In this lesson, we'll discuss allowable deductions that reduce taxable income. You'll learn about each deduction and its limitations. We'll also explore how to calculate tax liability after subtracting deductions.
4. Business Income Tax Calculations
Just like our own paychecks, businesses must claim their income to the Internal Revenue Service. The steps include calculating income and deductions, factoring in assets, depreciation, profits and losses.
5. Alternative Minimum Tax: Definition & Example
Despite having been around for more than 50 years, the alternative minimum tax has only recently been updated. In this lesson, learn exactly what it is and see an example of it at work.
6. Personal Tax Planning
In this lesson, we'll discuss income tax and its purpose. You'll also learn how to reduce your tax liability with itemized deductions, flexible spending accounts, home office expenses and retirement contributions.
7. Tax Consequences & Deductions in Real Estate Transactions
Let's look at the tax consequences of real estate transactions. A real estate sell may have deductible expenses, taxable gains, and possibly an exception for those gains. We will also briefly cover tax rules for foreign investors.
8. Tax Shelters & Passive Activity Loss: Definition & Rules
In this lesson, you will learn about the tax benefits of real estate. We will cover the definitions of tax shelters and passive activity losses. Understanding the rules of these topics can help a real estate investor become more profitable.
9. Understanding At-Risk Rules
The world of taxation can be a tricky one to navigate. When losses are incurred, there are special rules to follow to ensure compliance. This lesson will define at-risk rules and explain how losses on investments should be handled.
10. Tax Implications of Special Circumstances
Most tax matters are routine for individuals from year to year, but circumstances that can significantly impact someone's taxes may come up occasionally. Let's take a look at situations where a person might have major changes in his or her taxes.
11. Tax Planning for Charitable Contributions & Deductions
Donations to charity can help reduce your tax bill, but getting the most of out of these deductions requires some planning. Let's review the basic rules regarding charitable contributions.
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Other chapters within the CFP Certification Exam Study Guide - Certified Financial Planner course
- CFP Board Rules & Regulations
- Financial Planner Professional Conduct & Regulation
- General Principles of Financial Planning
- Education Financial Planning
- Individual Insurance Planning
- Risk Management & Business Insurance Planning
- Types of Investment Vehicles
- Investment Planning
- Retirement Savings & Income Planning for Individuals
- Retirement Savings & Income Planning for Businesses
- Estate Planning Strategies
- Financial Planning for Personal Life Situations
- CFP Client Relationship
- CFP Certification Exam Study Guide - Certified Financial Planner Flashcards