Matching Investments to Tax Saving Techniques

  • Credits: 13
  • Format: Self-Study eBook
  • Field of Study: Federal Tax Law
  • Author/Speaker: Danny Santucci
Available Formats:
Advanced Preparation: None
Experience Level: Overview
Program Prerequisites: General Understanding of Taxes
Course ID: EWTFM-T-01851-21-S | 6233-CE-0564
Published Date: © September 2021


Taxes aren't taxes – they are dollars in terms of the net return on investment. All tax professionals need to know the tax economics of investing for themselves and their clients. This need is accentuated by the rapid rise of the Internet as a broad-based and effective investment tool. The tax professional is in a special position to detect a client's need for financial planning. Preparing returns discloses assets, savings, business entities, and family members.

Knowledge of the client's assets, activities, and the tax characteristics of available entities permits investment matching for maximum after-tax return.

The basic tax characteristics of the primary tax entities are explored and analyzed. Their ability to defer, reduce, and eliminate tax is examined. Client goals, purposes, and risk tolerances are determined and quantitated using the Sharp ratio. Investments and assets are then evaluated using a variety of tools found on the Internet. Finally, investments and entities are matched to produce the best after-tax return for the client.

Topics include:
  • The Internet
  • Mapping for financial independence
  • Investment purposes
  • Cash management
  • Savings
  • Physical assets
  • Financial assets
  • Life insurance
  • Social Security
  • Investment selection & evaluation strategies

Learning Objectives:

After reading the course material, you will be able to:

  • Identify Internet advantages including depth and volume of available financial information and specify steps in the mapping process to prepare for financial independence.
  • Recognize investment planning goals and purposes, select retirement planning direction, and identify resource allocation including necessary generational changes.
  • Identify active and two passive investment acquisition strategies.
  • Cite the S corporation requirements and tax advantages and disadvantages particularly who’s associated with incorporating a farm.
  • Specify the title-holding benefits of trusts, co-tenancy, partnerships, and limited liability companies and the tax characteristics of each.
  • Identify the types of retirement plans used to provide lifetime benefits to a business owner and employees, determine how title can be held on behalf of minors and the tax treatment of custodianships, and specify the tax treatment of a probate estate.
  • Identify the benefits of tax deferral, the use of tax deferral under old Section 1034, the tax deferral advantages under Section 1031, and its basic elements.
  • Cite the related party Section 1031 restrictions and prohibited parties or entities and permissible disposition exceptions, identify protections for exchange participants, and recognize multiple property exchanges.
  • Identify tax saving credits, qualified computational expenses, and their limitations and restrictions.
  • Recognize the estimated tax rules, procedures including payment deadlines, underpayment penalties and, the economics of overpaying estimated taxes, and specify the types of interest that are nondeductible including personal interest under Section 163(h)(1).
  • Determine the deductibility of investment interest, prepaid interest, points, prepayment penalties, and the offset of passive income with rental property mortgage interest.
  • Identify business vehicle operating costs using (or switching between) the actual cost method or the standard mileage rate and allocating expenses based on Section 162 usage, cite the importance of retaining substantial expense and mileage records, and specify depreciation traps when purchasing a vehicle.
  • Determine the requirements for business expenses and identify the business expense statutory exceptions and the application of R.R. 90- 23 and R.R. 99-7 to the deduction of transportation costs to a temporary work location.
  • Identify the use of custodianship to split income and initial planning considerations and examples of good investments for children, determine deductions and credits for childcare, education, children, and Section 7872 loans, and specify the income and later estate tax benefits of gifts.
  • Determine how to value fringe benefits according to IRS regulations, identify how to comply with ERISA requirements, properly report reimbursed and unreimbursed business expenses under accountable and nonaccountable plans, recognize substantiation of auto expenses using a fixed and variable rate, and specify eligible retirement benefits exempt from social security taxes.

Who Should Attend:
  • All Certified Public Accountants (CPAs)
  • Enrolled Agents (EAs)
  • Other Tax Return Preparer (OTRP)

Qualifies and Approved with all State Boards of Accountancy and the following sponsorship’s: