This course examines the income tax consequences of securities transactions. Life insurance contracts, including MECs, are examined from an income tax standpoint. The rules related to annuities-annuitized and nonperiodic distributions--are discussed next. The wash sale rule, dividends, and the deductibility of investment interest expense are also covered in the course. In addition, a large portion of the course deals with capital gains and losses, and the various tax rates that may apply to those capital gains.

6-1 Identify characteristics of a form of cash value life insurance policy.
6-2 Analyze a situation to identify an income tax implication of an insurance policy.
6-3 Identify characteristics of a form of annuity contract.
6-4 Analyze a situation to identify an income tax implication of a commercial annuity.
6-5 Analyze a situation to calculate the net capital gain or loss for a set of security transactions by an individual.
6-6 Analyze a situation to identify an income tax implication of a security transaction.
6-7 Analyze a situation to calculate the amount of investment interest expense that is deductible.
6-8 Identify characteristics of a form of real or potential dividends.

Author: Michael B. Cates, MS, CRPS®, CFP®

Michael B. Cates, MS, CRPS®, CFP® joined the College in 1986, and is the professor for the Income Tax Planning course of the CFP Certification Professional Education Program. He received his CFP® certification in 1995, and completed the College’s Master of Science degree program in 1997. Mike is also the lead professor for the introductory Income Tax Planning course in the College’s master’s program. In addition to his responsibilities at the College, Mike also maintains a tax planning and preparation firm in Aurora, Colorado. You can reach Mike at mike.cates@cffp.edu.

Complexity Level: Intermediate