Module 4

Question 1

Where is the first place you should look for hidden assets?

Answer 1

tax returns

Question 2

Schedule A

Answer 2

itemized deductions

Question 3

Schedule B

Answer 3

interest and ordinary dividends

Question 4

Schedule C

Answer 4

profit or loss from business

Question 5

Schedule D

Answer 5

capital gains and losses

Question 6

Schedule E

Answer 6

supplemental income and losses

Question 7

Form 1065

Answer 7

partnership income

Question 8

Form 1120

Answer 8

corporate income

Question 9

Form 1120S

Answer 9

corporate income for S Corps

Question 10

Schedule 1

Answer 10

additional income/adjustments to income

Question 11

Schedule 2

Answer 11

AMT/excess advance premium tax credit repayment

Question 12

Schedule 3

Answer 12

non-refundable credits

Question 13

Schedule 4

Answer 13

self-employment tax, household employment taxes, additional taxes on IRAs

Question 14

Schedule 5

Answer 14

refundable credits

Question 15

Form 4562

Answer 15

deductions for depreciation and amortization

Question 16

Form 4797

Answer 16

sale or exchange of business property and recapture under Section 179

Question 17

What are the eight community property states?

Answer 17

Louisiana, Arizona, California, Idaho, Nevada, New Mexico, Texas, and Washington (TWIN CAN LAW)

Question 18

What happens to property acquired in a community property state if the couple moves outside of a comm prop state?

Answer 18

it remains community property, no matter where the couple moves

Question 19

Equitable distribution states see that property is divided how?

Answer 19

equitably (does not always equal 50/50 split like community property)

Question 20

Which IRC section permits spouses or former spouses to transfer property tax free?

Answer 20

IRC 1041

Question 21

To discover hidden assets, how far back should you review tax returns?

Answer 21

5 years

Question 22

Property that is earned during the marriage

Answer 22

marital property

Question 23

includes what a person brings into the marriage, inherits during the marriage, or receives as a gift during the marriage

Answer 23

separate property

Question 24

what is one of the first things you should do when assessing property for your client(s)?

Answer 24

list the couple’s assets

Question 25

what should you do if you have reason to believe your client's spouse is hiding assets?

Answer 25

review all cancelled checks and bank statements for the past few years

Question 26

assets are traditionally hidden 4 ways:

Answer 26

1. the spouse denies the existence of an asset 2. the spouse transfers assets to a 3rd party 3. the spouse claims the asset was lost or dissipated 4. the spouse creates false debt

Question 27

whose responsibility is it to discover hidden assets?

Answer 27

the attorney, although the CDFA can assist

Question 28

this part of a tax return may help identify unlisted assets or sources of income

Answer 28

Schedule A

Question 29

this part of a tax return may be a place to hide assets or income

Answer 29

Schedule C

Question 30

if a couple disagrees on what should be separate or marital property, what happens?

Answer 30

a judge decides if it was a gift or if it was an investment

Question 31

if home furnishings are to be valued and not amicably split between the couple, what is usually their valuation?

Answer 31

what you could get for it at a garage sale

Question 32

in community property states, are the two spouses' separate property subject to division by the court?

Answer 32

no

Question 33

if a couple moves from a community property state to an equitable distribution state, what happens to the classification of that property?

Answer 33

it remains community property no matter where they move