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Cut Your Clients Tax Bill: Individual Tax Planning Tips and Strategies

Cut Your Clients Tax Bill: Individual Tax Planning Tips and Strategies

Bill Bischoff

ISBN: 978-1-119-51230-1

May 2018

272 pages

$91.99

Description

This title provides the latest techniques for building and conserving wealth through proactive tax-planning and investment strategies. Completely updated for tax law changes, this book will bring you up-to-date on the latest strategies that will keep more money in the hands of clients and make their accountant look like a hero!

This book will help:

  • Determine when selling capital assets, business assets, and real estate are to a client’s advantage
  • Apply like-kind exchange rules under Section 1031
  • Identify ways to advise clients on how to minimize taxes on employer stock options and employer stock held in qualified retirement plan accounts
  • Differentiate between incentive stock options (ISOs) and nonqualified stock options (NQSOs)
  • Determine ways to help clients obtain maximum tax savings from vacation home and timeshare properties
  • Differentiate between the rules for “regular” vacation homes, timeshares, and co-ownership deals
  • Determine appropriate federal income tax advice for clients who are separated, divorcing, or divorced
  • Recall ways to help middle-class clients identify college financing tax breaks
  • Identify tax-saving college financing manoeuvres for higher-income clients who are ineligible for the well-known education tax breaks
  • Identify strategies of husband-wife businesses that will reduce Social Security and Medicare taxes
  • Identify strategies for how parents can employ their children through their closely held business

Related Resources

Instructor

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Chapter 1 Maximizing Tax Benefits for Sales of Capital Gain Assets and Real Property 1-1

Current Capital Gain and Dividend Tax Rates 1-3

Tax-Smart Strategies for Capital-Gain Assets 1-7

Tax-Smart Strategies for Fixed-Income Investments 1-11

Planning for Mutual Fund Transactions 1-13

Converting Capital Gains and Dividends into Ordinary Income to Maximize Investment Interest Write-Offs 1-18

Planning for Capital Gain Treatment for Subdivided Lot Sales via IRC Section 1237 Relief 1-21 Land Is Not Always a Capital Asset 1-28

Beneficial Capital Gain Treatment Allowed for Sale of Right to Buy Land and Build Condo Project 1-32

Escape Taxable Gains Altogether With Like-Kind Exchanges 1-34

Primer on the 3.8 Percent Net Investment Income Tax 1-48

Chapter 2 Planning for Employer Stock Options, Employer Stock Held in Retirement Accounts, and Restricted Stock 2-1

Planning for Employer Stock Options, Employer Stock Held in Retirement Accounts, and Restricted Stock Employer Stock Options: Tax Implications 2-2

How to Handle Employer Stock from Qualified Retirement Plan Distributions 2-12

Restricted Stock: Tax Implications 2-14

Chapter 3 Maximizing Tax Benefits for Personal Residence Transactions 3-1

Maximizing Tax Benefits for Personal Residence Transactions 3-1

Qualification Rules for Gain Exclusion Privilege 3-3

Excluding Gain from Sale of Land Next to Residence 3-13

Excluding Gains in Marriage and Divorce Situations 3-14

“Electing Out” of Gain Exclusion Privilege 3-18

Sale of Former Principal Residence “Freed Up” Suspended PALs from Rental Period Even Though Gain on Sale Was Excluded 3-19

Understanding the Tax Implications of Personal Residence Short Sales and Foreclosures 3-20

Tax Angles When Client Converts Personal Residence into Rental Property 3-28

Chapter 4 Tax Planning Opportunities with Vacation Homes,Timeshares,and Co-Ownership Arrangements 4-1

Rules for “Regular” Vacation Homes (as Opposed to Timeshares and Co-Ownership Deals) 4-2

Rules for Timeshares and Vacation Home Co-Ownership Arrangements 4-6

Playing the Gain Exclusion Game with Multiple Residences 4-9

Chapter 5 Tax Planning for Marital Splits and Married Same-Sex Couples 5-1

Separate Versus Joint Returns for Pre-Divorce Years 5-3

Avoiding Pre-Divorce Tax Fiascos with IRA and Qualified Retirement Plan Assets 5-11

Planning to Achieve Tax-Effective Splits of IRA and Qualified Retirement Plan Assets 5-12

Planning to Achieve Equitable After-Tax Property Divisions 5-18

Planning for Children’s Dependent Exemption Deductions 5-21

Planning to Qualify Payments as Deductible Alimony 5-22

Tax Developments Affecting Married Same-Sex Couples 5-30

Chapter 6 Tax-Saving Tips for Self-Employed Clients 6-1

“Heavy” SUVs, Pickups, and Vans Are Still Big Tax-Savers 6-2

Combine “Heavy” Vehicle with Deductible Home Office for Major Tax Savings 6-8

Home Office Deduction Options 6-10

What to Do When Spouses Are Active in the Self-Employment Activity 6-20

Simplified Compliance Rules for Unincorporated Husband-Wife Businesses in Non-Community Property States 6-27

Update on Tax-Smart Health Savings Accounts 6-30

Chapter 7 Tax-Smart College Financing Strategies 7-1

Education Tax Credits 7-2

Deduction for Higher Education Tuition and Fees 7-8

Deduction for Student Loan Interest 7-10

Coverdell Education Savings Accounts 7-12

Tax-Free Interest from U.S. Savings Bonds 7-13

Electing the Accrual Method for U.S. Savings Bonds 7-16

Splitting Investment Income with the Kids 7-18

How a Closely Held Business Can Deduct College Expenses Paid for the Owner’s Adult Child 7-30

“Last-Minute” Suggestions for Procrastinators 7-32

Tax Glossary Tax Glossary 1

Index Index 1

Solutions Solutions 1

Chapter 1 Solutions 1

Chapter 2 Solutions 4

Chapter 3 Solutions 5

Chapter 4 Solutions 6

Chapter 5 Solutions 7

Chapter 6 Solutions 9

Chapter 7.Solutions 11

Recent Developments

Users of this course material are encouraged to visit the AICPA website at www.aicpa.org/CPESupplements to access supplemental learning material reflecting recent developments that may be applicable to this course. The AICPA anticipates that supplemental materials will be made available on a quarterly basis. Also available on this site are links to the various “Standards Trackers” on the AlCPA’s Financial Reporting Center which include recent standard-setting activity in the areas of accounting and financial reporting, audit and attest, and compilation, review and preparation.