This module covers tax planning concepts and strategies including income taxes, taxation of investments, and other taxes such as the kiddie tax and Medicare contribution tax. Taxation of investment products includes taxation of stocks, fixed income, mutual funds, life insurance and annuities, real estate limited partnerships and investment trusts, and master limited partnerships (MLPs).

8–1 Define terms and fundamental concepts related to income taxation.
8–2 Identify the tax planning strategy used in a given situation.
8–3 Determine the effect of the average or marginal tax rate.
8–4 Explain the tax treatment or consequence from the purchase, holding, or sale of various forms of investments and life insurance products. Explain the concept of capital gain/loss and how each is treated for tax purposes.
8–5 Explain the tax treatment or consequence from the purchase, holding, or sale of various forms of investments and life insurance products.
8–6 Explain tax-motivated strategies involving various investments.

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’s 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 jim.pasztor@cffp.edu.

Complexity Level: Advanced