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15 Cards in this Set
- Front
- Back
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IRS DEFINITION OF LIFE INSURANCE
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MUST BE LIFE INSURANCE UNDER STATE LAW. MEET CASH VALUE ACCUMULATION TEST. MEET GUIDELINE PREMIUM |
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MODIFIED ENDOWMENT CONTRACT |
LIFE INSURANCE CONTRACT THAT FAILS TO MEET THE SEVEN PAY TEST |
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LIFE INSURANCE POLICIES PURCHASED ON OR AFTER JUNE 21 1988 |
DISTRIBUTIONS ARE TREATED ON A LIFO BASIS.EARLY WITHDRAWAL PENALTY OF 10% BEFORE 59.5. |
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FIXED ANNUITY EXCLUSION RATIO |
INVESTMENT IN THE ANNUITY DIVIDED BY EXPECTED RETURN |
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VARIABLE ANNUITY EXCLUSION RATIO |
INVESTMENT DIVIDED BY # OF EXPECTED PAYMENTS |
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PRE AUGUST 14 1982 |
FIFO |
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POST AUGUST 13 1982 |
LIFO |
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CAPITAL GAIN ON COLLECTIBLES |
ART, COINS, GOLD AND SILVER ETFS. MAX OF 28% |
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WASH SALE RULE |
IF SUBSTANTIALLY IDENTICAL STOCK OR SECURITIES ARE PURCHASED WITHIN EITHER 30 DAYS BEFORE OR 30 DAYS AFTER THE SALE OR DISPOSITION THE LOSS IS ADDED TO BASIS OF NEW SECURITY
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INVESTMENT INTEREST EXPENSE |
DEDUCTIBLE UP TO THE AMOUNT OF NET INVESTMENT INCOME |
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INVESTMENT INCOME
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GROSS INCOME FROM PROPERTY HELD PLUS GAIN RESULTING FROM SALE
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NET INVESTMENT INCOME |
INVESTMENT INCOME MINUS TIER 2 2% deductible investment expense (advisor fees) |
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t-bills |
Don't make interest payments, but are sold at discount to face value. |
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Disability insurance |
If paid by employer, the benefit payments are subject to FICA and FUTA for first six months. If employee paid then are exempt from both. |
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