Forums Support Library CFP – Charitable Financial Planner Income Tax Assumptions

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    • Kathleen Reynolds
      Post count: 428

      Income Tax Assumptions

      Use the Tax Assumptions window to enter the client’s income tax data. This data is used to generate the income tax report.
      Specifically, enter:

      • Adjusted Gross Income: The estimated amount of adjusted gross income for the year in which taxes are being calculated.
      • Total Itemized Deductions: Enter the estimated total of allowable itemized deductions.
      • Deductions Not Subject to Phaseout: Enter the estimated total of allowable medical, casualty, or theft losses, and investment-interest deductions (subject to the regular limits and restrictions).
      • Total Long-term Capital Gain: Enter the total net gain from the sale or disposition of capital assets held for more than one year.
      • Personal Exemptions (prior to 2018): Enter the number of allowable personal and dependency exemptions.
      • 28% Rate Capital Gain: Enter the total net gain from collectibles and §1202. (See IRC $sect; 1(h)(4).)
      • Unrecaptured §1250 Gain: Enter the amount of long-term capital gain that would be ordinary income if §1250 applied to depreciation in excess of 100% straight-line depreciation. (See IRC §1(h)(6).)
      • Qualified Dividends: For years 2003 and following, enter the total amount of dividends that are included in Adjusted Gross Income but qualify for the special tax rate for long-term capital gains.
      • Client’s Age and Spouse’s Age: These inputs are used to calculate if the client qualifies for the elderly deduction.
      • Filing Status: Choose the applicable filing status (Single, Joint, Separate, Head of Household).
      • Sunset in 2026? Indicate whether to model the current tax laws will be sunset in 2026.
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