Education Planning
The year of maturity for a Uniform Gifts to Minors Act account in California.
18 Years Old
The type of risk when foreign investments are priced in their local currency.
Exchange Rate Risk
The maximum Roth IRA contribution (per year) for joint filers with a MAGI greater than $240,000
$0
Typically recommended for second marriages, this type of trust protects an individual's asset on behalf of the surviving spouse while maintaining control over how the assets are distributed once the surviving spouse dies (in other words, assets pass to the trust's beneficiaries).
Qualified Terminable Interest Property (QTIP) Trust
The 4th estimated tax deadline for 2024 is during this month.
January 2025
The year of maturity for a Uniform Transfers to Minors Act account in California.
21 Years Old
The ratio used to calculate returns in excess of the risk-free rate per unit of total risk.
Sharpe Ratio
The maximum Roth IRA contribution (per year) for a married-separately filer earning the federal minimum wage (roughly $15K per year).
$0 - the MAGI limit for married (filing separately) is $10,000
This type of trust can distribute taxable income to multiple generations of beneficiaries but is not subject to estate taxes when beneficiaries die.
Dynasty Trust
Due to most K-1s being issued after April, private fund investors typically file this IRS form to extend their income tax returns by 6 months.
Form 4868
The maximum annual contribution limit to a Coverdell Education Savings Account by joint filers with MAGI greater less than $110,000.
$2,000 Per Beneficiary
In real estate, this income statement line is commonly calculated by adding back taxes and debt payments to net earnings.
Net Operating Income
This industry is not covered by Social Security
Railroad
Intended for property owners needing income while removing assets from their estate, this type of transfer involves the exchange of property for future income.
Installment Sale
This schedule of itemized deductions is subtracted from Adjusted Gross Income to calculate taxable income.
Schedule A
The additional federal tax rate on 529 earnings withdrawn for purposes other than qualified education expenses.
10%
The fee (%) for a private investment fund with a "2 and 20 over a 8 hard hurdle" and annual return of 12%.
2.8% = 2% + (4% * 0.20)
Loans against qualified retirement accounts cannot exceed the greater of 50% or this dollar amount.
$50,000
This type of trust distributes variable annuity income, and the corpus will be included in the grantor's estate if they die.
Grantor-Retained Unitrust (GRUT)
The maximum amount of ordinary losses joint filers can claim on the sale of Section 1244 Stock (restricted shares of small domestic companies).
$100,000
No further contributions can be made once a ScholarShare 529 (California) account reaches this maximum balance limit.
$529,000 Per Beneficiary
The fee (%) for a private investment fund with a "2 and 20 over a 8 soft hurdle" and annual return of 10%.
4% = 2% + (10% * 0.20)
The capital gain on an incentive stock option granted at $20, exercised at $100, and sold for $200 within one year of the grant and exercise dates.
$100 capital gain + $80 ordinary income... the ISO would have a $180 capital gain if it was sold 1 year after the exercise date and 2 years after the grant date.
This type of trust allows donors to maintain possession of a certain gift type, but gifts will return to donors' estates if they die before a specified term.
Qualified Personal Residence Trust
The maximum capital gains ($) that Section 1202 (Qualified Small Business Stock) investors can exclude from federal taxes if shares are held for 4 years.
$0... it would be $10,000,000 if the QSBS was held for at least 5 years