Family Tax Planning (CPE Course)

CPE Credit: 24 hours

Course Type: Downloaded PDF materials with online test

Price (with PDF Textbook): $160

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Course Description
While the nuclear family remains the center point of society, today it is under tremendous economic and social pressure. This course is designed to cover “hot” topics having a direct impact on the practitioner who represents any client with family issues. The emphasis is on using tax solutions to ease family economic concerns permitting the practitioner to be a real tax hero.

Author: Danny Santucci

Course Number: TX1011

IRS Program Number: 72821-T-00012-13-S

Learning Objectives

  • Determine how filing status affects taxpayers’ filing requirements, standard deductions, and correct tax.

  • Select the number of exemptions a client has and state the impact said exemptions will have.

  • Determine the differences between deductible and nondeductible divorce expenditures, identify which spouse is subject to tax imposed upon withheld wages, and specify the effects of making separate estimated tax payments or joint declarations of estimated tax.

  • Recognize the special rules that apply to community property states and identify whether clients are affected by these rules.

  • Determine the effect of living together on filing statuses and dependency noting differences between the married tax rate and other tax rates, identify the tax consequences of having a living together contract noting tax traps, and specify the results of Marvin v. Marvin.

  • Identify the child tax credit noting the requirements for qualifying child and determine the tax treatment of earned and unearned income for children.

  • Recognize the elements of the adoption tax credit noting qualifying costs and fees, specify the tests for the §21 dependent care credit and identify qualifications for §129 dependent care assistance.

  • Determine the differences between qualifying §162 deductible and nonqualifying education and specify education expense credits under §25A noting covered costs and fees.

  • Identify the benefits and requirements of the §530 education savings accounts, specify the deductible portion of student loan interest payments and determine the §108 exclusion for the forgiveness of certain student loans.

  • Recognize the mechanics and requirements of available educational benefits.

  • Identify educational incentives and financial aid available to students and parents.

  • Identify deductible §213 medical care expenses for federal tax purposes.

  • Specify variables that impact the deductibility of §170 charitable contributions identifying qualified organizations and limitations for these purposes noting the types of contributions that can be made, their tax treatment, and substantiation requirements.

  • Determine what constitutes casualty and theft, and specify the rules for taking a deduction for all or part of each loss under §165.

  • Recognize the relationship between home sales and the capital gains rates, and specify the rate “baskets” created by the capital gain provisions noting how to treat capital assets in each category.

  • Determine the key elements of the §121 home sale exclusion and its application, and specify the safe harbor proration provisions associated with the home sale exclusion.

  • Identify whether a taxpayer meets distance and time tests for deductible moving expenses under §217.

  • Identify categories of mortgages and characteristics of secured debt that influence the deductibility of interest, determine what constitutes a “qualified home,” and specify special situations that affect qualified home mortgage interest.

  • Recognize the general rule for the tax treatment of points noting exceptions and, identify when a taxpayer will receive a Mortgage Interest Statement – Form 1098 and which information is included on this statement to figure interest deductions.

  • Determine when a stock in a cooperative housing corporation owned by a tenant-stockholder is a qualified home and, identify the limits on the home mortgage deduction.

  • Identify forms of marital property noting their likely division in marital property settlements and specify the legal principles used in dividing assets and providing support on divorce or separation.

  • Recognize the benefits of premarital agreements in avoiding potential divorce problems, determine elements of the Uniform Premarital Act, and specify the provisions that are allowed in such agreements.

  • Determine the tax consequences of various property settlements.

  • Specify the dangers of interspousal purchases including deferred tax liability, determine three effects of purchasing an interest in tangible personal property or real property used in a trade or business or held for investment, and identify potential depreciation recapture.

  • Determine the tax consequences of selected asset divisions incident to divorce and those that follow bankruptcy.

  • Determine what constitutes “alimony” and “separate maintenance payments” under §71 and their deduction or income treatment under §215, specify types of §71 “divorce or separation instruments” and identify how having an invalid decree, an amended instrument, or a premarital agreement impacts such an instrument.

  • Identify the tax treatment of alimony under instruments executed after 1984 based on the seven alimony requirements.

  • Identify the alimony and child support tax provisions that currently apply with those that applied to instruments executed prior to 1985.

  • Recognize the deduction of alimony paid and reporting of alimony received noting the use alimony trusts to realize tax advantage and security, determine alimony recapture, and identify the use of annuity contracts and the tax treatment of alimony paid by an estate.

  • Specify the tax treatment of child support noting events that determine whether a contingency is clearly child-related recalling how to rebut this presumption of child support and identify COBRA rules and qualified medical child support orders to make the most of health care coverage plans.

  • Identify short-term financial goals and investment purposes, recognize the importance of defining, citing prioritized realistic goals noting how investing allocation changes withage.

  • Determine the tax consequences of title holding methods.

  • Recognize the impact of retirement planning postponement noting the importance of early planning using the author's suggested step process, specify a balance sheet method to plan retirement, determine how to diversify portfolios by balancing liquid and nonliquid assets, and identify the purpose of savings noting strategies to save.

  • Identify the goals of money management noting types of income in order to preserve cash more effectively.

  • Determine how to budget income into cash by containing expenditures and developing discretionary income and control cash, specify how to convert income into assets by purchasing investments, and identify asset acquisition rules.

  • Recognize tax-advantage investments noting management rules, and determine the economic impact of accelerating deductions, postponing tax liability, and leveraging.

  • Determine how splitting income among a family group minimizes overall taxes using major income splitting formats, and recognize the use of an unincorporated business to obtain deductible business expense and the home-office deduction.

  • Identify the benefits and requirements of using a C or an S corporation noting the taxation of these entities including their ability to split income, and determine family members in a §704(e) family partnership.

  • Recognize a custodianship to split income and contain the “kiddie tax,” identify the use gifts to reduce death taxes and split income, and specify how to prevent the recharacterization of a loan under §7872.

  • Determine what constitutes nonqualified and qualified deferred compensation plans identifying their benefits and contributions limits and specify the current and deferred advantages and disadvantages of corporate plans noting fiduciary responsibilities and prohibited transactions.

  • Identify the requirements of basic forms of qualified pension plans enabling clients to compare and contrast such plans.

  • Determine the requirements of defined contribution and defined benefit retirement plans and specify the types of defined contribution plans noting their impact on retirement benefits.

  • Identify the differences between self-employed plans and qualified plans from other business types and owners noting key choice of entity factors.

  • Specify the requirements of IRAs, SEPs, and SIMPLEs, and recognize tax-free Roth IRA distributions noting strategies to maximize plan benefits.

  • Identify popular ways to receive distributions from a retirement plan or an IRA, specify types of annuities and their effect on how and when participants receive payments, determine the tax on annuity payments using either the general rule or the simplified general rule and recognize lump-sum distributions and their special tax treatment.

  • Cite the key components of rollovers that can be used to reinvest cash or other assets without including the amount in income.

  • Specify the tax consequences of taking premature distributions assisting clients in avoiding the 10% penalty, and recognize the minimum distribution rules noting how to avoid the 50% penalty associated with taking either smaller distributions than required or distributions after the required beginning date for minimum distributions.

  • Identify ways to manage an incompetent person’s estate noting their uses and benefits.

  • Recognize the basic eldercare benefits of Medicare and Medicaid, specify what constitutes income and the three separate asset groups for Medicaid, determine differences and requirements for Supplemental Security Income and Social Security disability benefits, and identify common health care decisions such as having a living will.

  • Specify types of wills noting functions a will can perform, identify types of bequests, determine the duties of executors and guardians, and recall ways to hold title and their tax ramifications.

  • Identify advantages of a properly drafted will, determine the distribution flow of simple wills, and specify the pros and cons of probate proceedings.

  • Recognize the unlimited marital deduction and its effect on the gross estate of the value of property, determine the applicable exclusion amounts for various years of death, and specify what constitutes “stepped-up basis” and the repealed “modified carryover basis” for estate tax purposes.

  • Identify estate-planning goals, recognize the benefits and drawbacks of the primary dispositive plans, specify the various types of estate trusts and family estate documents, and recall the former advantages and disadvantages of the private annuity.

Level: Overview

Instructional Method: QAS Self-Study

NASBA Category: Taxes

Prerequisites: None

Advance Preparation: None

Program Registration Requirements: Click on "Purchase Course" near the top of this page to pay for and access the course. You will then be able to download the course as a PDF file, then take an on-line examination, and then download a certificate of completion if you pass the examination.

Program Refund Policy: For more information regarding administrative policies concerning complaints, refunds, and other matters, see our policies page.


AccountingTools, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have the final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website:

The NASBA sponsor identification number for Accountingtools, Inc. is 115881.

AccountingTools is an IRS Approved Continuing Education Provider. We are compliant with the requirements for continuing education providers (as described in sections 10.6 and 10.9 of the Department of Treasury’s Circular No. 230 and in other IRS guidance, forms, and instructions). Our IRS Approved Continuing Education Provider number is 72821.