[date] [venue] [contact information] Personal Financial Planning Basics and the Tax Return

Personal Financial Planning Section Introduction About the PFP Section & PFS Credential The AICPA PFP Section provides information, resources, advocacy and guidance for CPAs who specialize in providing estate, tax, retirement, risk management and investment planning advice to individuals and their closely held entities The CPA/Personal Financial Specialist (PFS) credential distinguishes CPAs as subject-matter experts who have demonstrated their financial planning knowledge through experience, education and testing 2

Personal Financial Planning Section Overall picture of clients’ financial situation Uncover opportunities for planning that client has overlooked Details of cash flow/income situation Use in conjunction with client balance sheet Why use tax returns to develop personal financial planning

Personal Financial Planning Section Children Elderly parents Dependents

Personal Financial Planning Section Deferral opportunities Retirement Plans/IRA’s Roth Conversions Income – Understand the Sources

Personal Financial Planning Section Taxable vs. Tax-Exempt Bank Accounts – FDIC limits Cash levels – emergency fund Interest – Schedule B

Personal Financial Planning Section Source Alternative Investments? Titling and Custody? Stock Concentration Dividends – Schedule B

Personal Financial Planning Section Succession planning Income Shifting Business Structure Home Office Schedule C

Personal Financial Planning Section Carryovers Trading activity Loss harvesting Investment Strategy Schedule D

Personal Financial Planning Section Required Minimum Distributions being taken? Net Unrealized Appreciation (NUA) from 401(k) Beneficiary elections Source of Withdrawals Has a Roth Conversion been considered? Withdrawal Rate Retirement Plans/Distributions

Personal Financial Planning Section Risk management Multiple owners Estate planning Passive activity loss rules Schedule E – Real Estate

Personal Financial Planning Section Valuation issues IRS attack on Family Entities Investment partnerships Negative Basis Issues Schedule E – Partnerships, S-Corps

Personal Financial Planning Section Trust Management Investment Strategy Trustee Adequacy Trust Purpose Distributions Schedule E - Trusts

Personal Financial Planning Section Investment choice Deferral Opportunities Qualified plan/defined benefit plan Simple, SEP, IRA

Personal Financial Planning Section Long Term Care Insurance Health Insurance Medicare Rules Impact of Obama Health Care Act Health Savings Accounts Schedule A - Medical Expenses

Personal Financial Planning Section Residency rules Multiple state residency Potential tax liability in other states Timing of payments and AMT Schedule A - State Taxes

Personal Financial Planning Section Limitations Carryover of Inv. Interest Exp Margin Interest Schedule A - Interest Expense

Personal Financial Planning Section Appreciated securities Timing IRA distribution – direct to charity Carryovers Documentation Rules Schedule A - Charitable

Personal Financial Planning Section Investment fees Limitation Planning opportunities Schedule A - Miscellaneous

Personal Financial Planning Section Partnership agreement Valuation Employee benefit plans Profit Allocation Multi-state operations Partnership Tax Returns

Personal Financial Planning Section Compensation of officers Shareholder agreement Multi-state operations S-Corp vs. C Corp Corporate Tax Returns

Personal Financial Planning Section Number of donees Split gifts 529 plans – special rules Valuation discounts Basis and date Gift Tax Returns

Personal Financial Planning Section Impact on overall planning Current/proposed changes Stock options Planning opportunities for ISO exercise AMT Credit Carryover – potential loss of credit Alternative Minimum Tax

Personal Financial Planning Section Impact on your clients’ situations Potential future impact of tax rate increases Potential expiration of Bush tax cuts - status Estate tax status 2011 Changes

25 We can learn a lot about someone through their tax return. Many tax and investment planning opportunities can be uncovered with a thorough review of your tax return. Summary

Q&A [insert contact information here] Special thanks to Lyle Benson, CPA/PFS, CFP® and Glenn Freed, CPA/PFS for contributing content.