Chapter 5 — Tax Planning

Domain Weight: 14% (~24 questions) Folder: Chapter 5 - Tax Planning/

| File | Topic | Key Concepts | |---|---|---| | 5.1 - Income Tax Fundamentals and Planning Strategies.md | Tax structure, capital gains, deductions, business entities, AMT | Brackets, NIIT, wash sale, Sec. 121, passive activity rules, QBI deduction, S-corp tax savings |

Core competencies this chapter builds:

• Navigate the federal income tax calculation cascade from gross income to tax due
• Apply 2025 ordinary income brackets, LTCG rates, and special capital gains rates
• Execute capital gains netting rules and apply the wash sale rule correctly
• Identify above-the-line vs. itemized deductions and their AGI impact
• Analyze business entity tax treatment and the S-corp self-employment tax advantage
• Apply the passive activity loss rules including the $25,000 rental loss allowance
• Identify AMT triggers and evaluate ISO exercise tax consequences
• Design Roth conversion and capital gains harvesting strategies

---