Property and Retirement Planning
Learn the decision pattern the exam can test, then apply it to a realistic taxpayer fact pattern.
What changes the answer?
A deferral can improve current cash flow without reducing total tax or meeting a client's non-tax goals.
A tax-practice scenario
A client considers selling appreciated property and increasing retirement contributions in the same year. Model timing and character separately.
Identify the taxpayer, entity, transaction, and tax period first. Write the controlling tests in order, apply only the relevant facts, and keep the reporting result separate from any planning recommendation.
Do not take this shortcut.
Recommending a tax result without confirming the transaction can still be changed.
Turn the rule into recall.
Separate reversible planning choices from completed facts, then show current and future consequences.
- ExplainState the governing distinction without notes.
- ApplyChange one fact in the scenario and predict the new result.
- RetrieveAnswer an unseen question, then review every option.
Official source and scope
This lesson follows the current PSI content outline and uses the IRS reference below for the underlying tax or practice framework. Always confirm current forms, instructions, thresholds, and effective dates before advising a taxpayer.