Bill, who is single, sells his personal residence to move from Atlanta to Chicago due to being transferred by his employer. He has owned and used the house for 18 months. The sale price is $460,000, selling expenses are $25,000 and his adjustable taxable basis is $180,000. What, if any, is Bill’s taxable gain?

Which of the following statements is correct regarding Social Security?

Which of the following is a good benchmark for savings for retirement as a percent of gross income for someone who is between age 25 and 30?

Randy has ten shares of stock that he bought on March 1, Year 1, for $5 each. On March 1, Year 2, he sells all the shares for $200. What is the income tax consequence of the sale?

In May of this year, Gonzo inherited a vacation home from his friend Kermit who passed away unexpectedly. Kermit had paid $200,000 to purchase the property, and it was valued in his estate at$325,000. In December of this year, Gonzo sold the property for $410,000. Which of the following best describes the tax treatment for Gonzo regarding the sale of the vacation home?

Which of the following is not an itemized deduction from adjusted gross income?

The three types of income in the U.S. income tax system are ordinary income, portfolio income and capital income.

For the next 3 problems (#23, 24, 25), use the following fact pattern: Steven, age 43, earns $80,000 annually; and his wage replacement ratio has been determined to be 80%. He expects inflation will average 3% for his entire life expectancy. He expects to work until 68 and live until 90. He anticipates an 8% return on his investments. Additionally, Social Security Administration has notified him that his annual retirement benefit, in today’s dollars will be $26,000.   Using the capital needs / annuity method, calculate how much capital Steven will need to be able to retire at age 68.    

While equities have historically outperformed other asset classes, they have not done so after considering inflation and taxes.

Which of the following statements about retirement planning trends is correct? I.The percentage of those age 65 and older who are still employed has been steadily declining over the past 30 years. II.The change in the number of defined benefit plans has resulted in a shift in risk from employers to employees. III.The increased life expectancy combined with reduced annuitized benefits has increased the risk of superannuation for retirees.