Taxes come into play with almost any financial decision, and this module not only takes a look at the tax implications of these decisions, but also at various planning ideas for minimizing taxes. The federal Form 1040 tax calculation is covered first, highlighting the impact that filing status, income, deductions, exemptions, and tax credits can have on the ultimate tax liability. The tax consequences of selling property are covered. For example, how is basis calculated with gifted property? What is the netting process when calculating capital gains? What is the difference in taxation for annuities depending upon whether it is a lump-sum distribution or a stream of annuity payments, or whether it is a fixed or variable annuity? Employee benefits are also covered, along with their tax ramifications. What are the characteristics and benefits of cafeteria plans and flexible spending accounts (FSAs)? The final chapter deals with tax planning strategies, and also takes a look at Coverdell education savings accounts and Section 529 plans.

Author: Jim Pasztor, MS, CFP®

Jim Pasztor, vice president of Academic Affairs at the College for Financial Planning is also involved with several of the College‚Äôs investment courses and the white paper series. He is a CFPM® practitioner, and has an MS degree in personal financial planning and an MSF degree in financial analysis, both from the College for Financial Planning. Jim was the recipient of the Edward D. Baker III Journal Award from IMCA in 2014 for his article Endogenous Risk and Dangers to Market Stability. You can reach Jim at

Complexity Level: Overview