Detailed Table of Contents
CHAPTER 17
ELDERLY AND DISABLED TAX RELIEF
§ 17.01 Overview of Elderly or Disabled Provisions
-----[1] Increased Standard Deduction
-----[2] Larger Medical Deduction
-----[3] Elderly or Disabled Tax Credit
-----[4] Nontaxable Reverse Mortgage Drawdowns
-----[5] Exclusion of Gain on Sale of Residence
-----[6] Relief from the Tax on Net Investment Income
§ 17.02 Increased Standard Deduction
§ 17.03 Larger Medical Deduction
§ 17.04 Elderly or Disabled Tax Credit
-----[1] When Credit Is Available
-----[2] Credit Computation for Persons Filing Joint Returns
----------[a] Determining Method of Computation
----------[b] Over Age 65
----------[c] Disabled Spouses Under Age 65
-----[3] Credit Computation for a Single Person
----------[a] Over Age 65
----------[b] Disabled Person Under Age 65
-----[4] Credit for a Married Person Filing a Separate Tax Return
----------[a] Over Age 65 Living Apart from Spouse
----------[b] Disabled Person Under Age 65 Living Apart from Spouse
§ 17.05 Reverse Mortgages: Drawing Tax-Free Funds from Home Equity
-----[1] The General Attributes of a Reverse Mortgage
-----[2] The Tax Attributes of a Reverse Mortgage
----------[a] Mortgage Proceeds, Interest Expense, and Loan Costs
----------[b] Types of Deductible and Nondeductible Interest
---------------[i] Acquisition Indebtedness
---------------[ii] Home Equity Indebtedness
---------------[iii] Indebtedness Incurred to Earn Tax-Exempt Income
----------[c] Loan Costs for a Reverse Mortgage
---------------[i] Loan Costs Generally Not Deductible (with Two Exceptions)
---------------[ii] Deductibility of Points
---------------[iii] Deductibility of Mortgage Insurance Premiums
§ 17.06 Tax Treatment of the Sale of a Retiree's Residence
-----[1] Capital Gain or Loss on Old Residence
-----[2] Requirements for the Exclusion of Gain on Principal Residence
-----[3] Limitations on the Exclusion
-----[4] Partial Exclusion for Early Sale Due to Changed Circumstances
§ 17.07 Relief from the Tax on Net Investment Income
-----[1] Taxable Amount Limited by a Threshold
-----[2] Net Investment Income Defined
-----[3] Planning to Minimize the Tax
----------[a] Effective Planning Techniques
----------[b] Planning with Conversion of Taxable Investments
----------[c] Planning with Deferral of Investment Income
----------[d] Planning with Life Insurance
----------[e] Working Interest in an Oil or Gas Well
----------[f] Implementation of Plan before 2013
----------[g] Planning with Tax-Favored Retirement Plans
----------[h] Planning with Unfunded Deferred Compensation
----------[i] Planning with Funded Nonqualified Plans
-----[4] Tax on Investment Income of Trusts and Estates
-----[5] No Investment Tax on Certain Charitable Trusts
-----[6] No Investment Tax on Nonresident Aliens
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ELDERLY AND DISABLED TAX RELIEF
§ 17.01 Overview of Elderly or Disabled Provisions
-----[1] Increased Standard Deduction
-----[2] Larger Medical Deduction
-----[3] Elderly or Disabled Tax Credit
-----[4] Nontaxable Reverse Mortgage Drawdowns
-----[5] Exclusion of Gain on Sale of Residence
-----[6] Relief from the Tax on Net Investment Income
§ 17.02 Increased Standard Deduction
§ 17.03 Larger Medical Deduction
§ 17.04 Elderly or Disabled Tax Credit
-----[1] When Credit Is Available
-----[2] Credit Computation for Persons Filing Joint Returns
----------[a] Determining Method of Computation
----------[b] Over Age 65
----------[c] Disabled Spouses Under Age 65
-----[3] Credit Computation for a Single Person
----------[a] Over Age 65
----------[b] Disabled Person Under Age 65
-----[4] Credit for a Married Person Filing a Separate Tax Return
----------[a] Over Age 65 Living Apart from Spouse
----------[b] Disabled Person Under Age 65 Living Apart from Spouse
§ 17.05 Reverse Mortgages: Drawing Tax-Free Funds from Home Equity
-----[1] The General Attributes of a Reverse Mortgage
-----[2] The Tax Attributes of a Reverse Mortgage
----------[a] Mortgage Proceeds, Interest Expense, and Loan Costs
----------[b] Types of Deductible and Nondeductible Interest
---------------[i] Acquisition Indebtedness
---------------[ii] Home Equity Indebtedness
---------------[iii] Indebtedness Incurred to Earn Tax-Exempt Income
----------[c] Loan Costs for a Reverse Mortgage
---------------[i] Loan Costs Generally Not Deductible (with Two Exceptions)
---------------[ii] Deductibility of Points
---------------[iii] Deductibility of Mortgage Insurance Premiums
§ 17.06 Tax Treatment of the Sale of a Retiree's Residence
-----[1] Capital Gain or Loss on Old Residence
-----[2] Requirements for the Exclusion of Gain on Principal Residence
-----[3] Limitations on the Exclusion
-----[4] Partial Exclusion for Early Sale Due to Changed Circumstances
§ 17.07 Relief from the Tax on Net Investment Income
-----[1] Taxable Amount Limited by a Threshold
-----[2] Net Investment Income Defined
-----[3] Planning to Minimize the Tax
----------[a] Effective Planning Techniques
----------[b] Planning with Conversion of Taxable Investments
----------[c] Planning with Deferral of Investment Income
----------[d] Planning with Life Insurance
----------[e] Working Interest in an Oil or Gas Well
----------[f] Implementation of Plan before 2013
----------[g] Planning with Tax-Favored Retirement Plans
----------[h] Planning with Unfunded Deferred Compensation
----------[i] Planning with Funded Nonqualified Plans
-----[4] Tax on Investment Income of Trusts and Estates
-----[5] No Investment Tax on Certain Charitable Trusts
-----[6] No Investment Tax on Nonresident Aliens
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| Copyright © 2005-2011 by Vorris J. Blankenship All Rights Reserved |
The author intends that this website provide accurate and authoritative information on the subject
matter covered. However, the information provided on this website is not a substitute for the advice of
an attorney, accountant, or other professional; and the author is not offering legal, accounting, or
other professional advice. The material presented on this website is not intended for use, and may
not be used, to avoid tax penalties. If you need legal advice or other professional help, you should
seek (from an independent attorney, accountant, or other competent professional) advice based on
your own particular circumstances.
matter covered. However, the information provided on this website is not a substitute for the advice of
an attorney, accountant, or other professional; and the author is not offering legal, accounting, or
other professional advice. The material presented on this website is not intended for use, and may
not be used, to avoid tax penalties. If you need legal advice or other professional help, you should
seek (from an independent attorney, accountant, or other competent professional) advice based on
your own particular circumstances.
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