Tax Planning for Retirees

Elderly and Disabled Tax Relief

  • § 19.01 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
  • § 19.02 Increased Standard Deduction
  • § 19.03 Larger Medical Deduction
  • § 19.04 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
  • § 19.05 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
  • § 19.06 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
  • —–[5] Tax on Net Investment Income Applies
  • § 19.07 The Sale or Surrender  of a Retiree’s Life Insurance Policy
  • § 19.08 The Net Investment Income Tax and Special Relief for Retirees
  • —–[1] Exclusion of Social Security Benefits and Retirement Plan Distributions
  • —–[2] Taxable Amount Limited by a Threshold
  • —–[3] Net Investment Income Defined
  • ———-[a] Net Investment Income Generally
  • ———-[b] Trade or Business Income as Net Investment Income
  • —–[4] 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
  • —–[5] Tax on Investment Income of Trusts and Estates
  • —–[6] No Investment Tax on Certain Charitable Trusts
  • —–[7] No Investment Tax on Nonresident Aliens

» Chapter 20 – ESTATE AND GIFT TAXES ON RETIREMENT BENEFITS