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Re: Paying taxes due to IRS with multiple credit cards

Have you considered that the fees for using a credit card to pay and the interest charges on those credit card balances may exceed what the IRS would charge you for late payment penalties and interest? Why don't either pay what you can as an extension payment and pay the balance when able, or file a...
by HouseStark
Tue Apr 01, 2014 11:01 am
 
Forum: Personal Finance (Not Investing)
Topic: Paying taxes due to IRS with multiple credit cards
Replies: 2
Views: 469

Re: Advise on selling taxable mutual funds

There are many potential factors beyond capital gains rates that could possibly have an impact in determining the actual effective tax rate on the gains you would realize from selling all or some of those shares. Among them are the phase-out of itemized deductions, the phase-out of personal exemptio...
by HouseStark
Thu Mar 13, 2014 10:51 pm
 
Forum: Investing - Help with Personal Investments
Topic: Advise on selling taxable mutual funds
Replies: 2
Views: 313

Re: Vanguard Brokerage Corrected Statements and Turbotax

Thanks for the info. OUCH! I guess the early bird get's the shaft. If I were to leave everything as is and not file an amended return, wouldn't IRS catch the discrepancy on my return and just refund the difference? The IRS will not correct that type of error on their own. The IRS will not correct f...
by HouseStark
Sun Mar 09, 2014 2:53 pm
 
Forum: Personal Finance (Not Investing)
Topic: Vanguard Brokerage Corrected Statements and Turbotax
Replies: 6
Views: 741

Re: Minimizing tax liability on home sale/transfer

I agree that the taxable gain may be less than anticipated when factoring in the main home gains exclusion. If a house has been owned for that long it would seem likely there were some capital improvements over that period which could be added to the basis. It would be worth compiling that informati...
by HouseStark
Thu Mar 06, 2014 3:23 pm
 
Forum: Personal Finance (Not Investing)
Topic: Minimizing tax liability on home sale/transfer
Replies: 4
Views: 265

Re: Form 8960, NIIT, investment expenses

Only your Schedule E net income from a rental home would flow to the Form 8960 as investment income. That net income would already have had the applicable real estate taxes deducted to have arrived at that net income. Keep in mind that a vacation home that has both rental income and personal use cou...
by HouseStark
Tue Mar 04, 2014 3:07 pm
 
Forum: Personal Finance (Not Investing)
Topic: Form 8960, NIIT, investment expenses
Replies: 5
Views: 316

Re: Curious outcome, donations and cost basis, 8000%marginal

Is the donated asset properly categorized as a long-term capital gain property? There is a limit on the amount of deduction that can be taken of 30% of AGI. It doesn't make sense to me how that would cause such a leap, but maybe it has something to do with it.
by HouseStark
Mon Mar 03, 2014 2:51 pm
 
Forum: Personal Finance (Not Investing)
Topic: Curious outcome, donations and cost basis, 8000%marginal rat
Replies: 4
Views: 303

Re: Timing between HSA contributions and withdrawals

Assuming you have eligibility to contribute that amount to your HSA, there is no issue on timing of contribution and distribution for an expense incurred after you opened your HSA.
by HouseStark
Mon Mar 03, 2014 2:44 pm
 
Forum: Personal Finance (Not Investing)
Topic: Timing between HSA contributions and withdrawals
Replies: 3
Views: 167

Re: Paying IRS taxes with a credit card when e-filing

You can pay the balance due on your 1040 return any way that is permitted, including going to another payment provider other than the one TT uses.
by HouseStark
Sun Mar 02, 2014 6:32 pm
 
Forum: Personal Finance (Not Investing)
Topic: Paying IRS taxes with a credit card when e-filing
Replies: 7
Views: 651

Re: Help with filling out form 8889 (HSA Contributions)

Your questions are all inquiring about inputs to TurboTax and I can't help you there, but I can tell you what to look for on the output side, that is the actual Forms 8889. First, there will be two forms, one for you and one for your wife. Your form would indicate family coverage on line 1 and hers ...
by HouseStark
Sun Mar 02, 2014 3:11 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help with filling out form 8889 (HSA Contributions)
Replies: 4
Views: 502

Re: Tax Question: Tuition reimbursement and standard deduct

I second that reply. As a general rule for any tax benefit based on an expense, if you are reimbursed for that expense and that reimbursement is non-taxable, then your out-of-pocket expense is zero and you cannot claim any tax benefit since you have no expense.
by HouseStark
Sun Mar 02, 2014 2:22 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tax Question: Tuition reimbursement and standard deductions
Replies: 2
Views: 188

Re: Pay Stub question- HSA

My Box 12 had contributions made by salary deductions. At the end of the year I was $200 short of the limit, so I contributed that directly and took it as a deduction. Turbotax kept including the amount in Box 12 as part of my taxable income, so they were saying that I owed like $800 while TaxAct s...
by HouseStark
Sat Mar 01, 2014 8:21 pm
 
Forum: Personal Finance (Not Investing)
Topic: Pay Stub question- HSA
Replies: 7
Views: 650

Re: HUD-1 and filing taxes

This is a recovery from taxes paid in 2012. Does this mean I have to file an amended return for 2012? No, you do not need to file an amended return for 2012, at least not for that reason. But who knows, maybe you messed up some other way? Just ribbing ya. When you receive a refund in 2013 of 2012 s...
by HouseStark
Fri Feb 28, 2014 9:44 pm
 
Forum: Personal Finance (Not Investing)
Topic: HUD-1 and filing taxes
Replies: 16
Views: 1593

Re: Pay Stub question- HSA

If an amount for an HSA contribution appears on a W-2, it should be listed in Box 12 with a code of W. Any amount in Box 12 is not going to be a deduction on the tax return because it is either 1) an employer contribution without employee salary reduction, or 2) it is an employee contribution by sal...
by HouseStark
Fri Feb 28, 2014 9:33 pm
 
Forum: Personal Finance (Not Investing)
Topic: Pay Stub question- HSA
Replies: 7
Views: 650

Re: Stock donation to charity

If you arrive at the conclusion to take this deduction for 2014, I would work with the donation recipient to make sure your donation acknowledgment agrees with that period. I agree that the transfer date of the stock would seem to be the governing date of the donation because that is when the value ...
by HouseStark
Fri Feb 28, 2014 9:19 pm
 
Forum: Personal Finance (Not Investing)
Topic: Stock donation to charity
Replies: 6
Views: 623

Re: Options & Taxes

As part of my options strategy, I'm trying to consider taxes. Wondering if my math here makes sense. I'm considering selling a portion of stock that will keep me in the 33% tax bracket, but not put me much higher. You say "selling a portion of stock", but your description refers to option...
by HouseStark
Fri Feb 28, 2014 9:10 pm
 
Forum: Investing - Help with Personal Investments
Topic: Options & Taxes
Replies: 5
Views: 356

Re: HUD-1 and filing taxes

If part of the RE taxes you paid in the current tax year, meaning 2013, were credited back to you on the closing statement for a 2013 sale, then that is simply a reduction of RE taxes that can be deducted for 2013, not a recovery. For example, if you paid $2000 during 2013 for the first six months o...
by HouseStark
Fri Feb 28, 2014 8:57 pm
 
Forum: Personal Finance (Not Investing)
Topic: HUD-1 and filing taxes
Replies: 16
Views: 1593

Re: Good article on not using a CFP

This article is not about using the services of a CFP. It's about how financial advisers who charge a fee based on Assets Under Management are not worth what they charge and the author postulates how that fee model will change. Most such advisers are acting primarily as portfolio managers, not as ge...
by HouseStark
Tue Feb 25, 2014 3:39 pm
 
Forum: Investing - Theory, News & General
Topic: Good article on not using a FA that charges a high AUM %
Replies: 8
Views: 976

Re: Fixing 8606 error, understanding IRA basis

As I studied the form, it looks like the appreciation on the after-tax contributions are not taxed as I make distributions. The multiplier created by the ratio between pre and after tax bases is used to determine the taxable portion of the distributions (conversions). It seems like this calculation...
by HouseStark
Tue Feb 25, 2014 3:05 pm
 
Forum: Personal Finance (Not Investing)
Topic: Fixing 8606 error, understanding IRA basis
Replies: 4
Views: 344

Re: Fixing 8606 error, understanding IRA basis

To correct the return, you would file a 2012 1040X amended return, and with that return attach the corrected Form 8606 and any other part of the original tax return that is changed by the amended return. If a form or schedule is not changed by the amended return, then it is not included with the 104...
by HouseStark
Tue Feb 25, 2014 2:59 pm
 
Forum: Personal Finance (Not Investing)
Topic: Fixing 8606 error, understanding IRA basis
Replies: 4
Views: 344

Re: Can I contribute to an IRA while I have a 401K?

You didn't mention whether you have any other Traditional IRAs other than the one you opened with your $6500 contribution. That would make a difference. The objective of a back door Roth contribution, is not to get an IRA deduction for the contribution, but to make a Roth contribution by getting aro...
by HouseStark
Sun Feb 23, 2014 6:14 pm
 
Forum: Personal Finance (Not Investing)
Topic: Can I contribute to an IRA while I have a 401K?
Replies: 5
Views: 517

Re: Can I contribute to an IRA while I have a 401K?

Yes, you are eligible to contribute to a Traditional IRA, if you have the earned income. You may not be eligible to deduct your IRA contribution. That is a different thing. But, if your intent was to do a backdoor Roth, then you don't care about deducting your TIRA contribution, anyway.
by HouseStark
Sun Feb 23, 2014 6:10 pm
 
Forum: Personal Finance (Not Investing)
Topic: Can I contribute to an IRA while I have a 401K?
Replies: 5
Views: 517

Re: Contributions to 401(k)

Would a different way of saying that be the company matches $1 for $1 on the first 1% and 50 cents on the $1 for the next 5%? What's 1% plus 5%? That means for a 6% deferral you get a match of 3.5%, or perhaps more enticing, a "return" of 58.3%. Think of it as for your $100 contribution, t...
by HouseStark
Sun Feb 23, 2014 6:05 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help With Maxing Out Company 401(k) Match
Replies: 9
Views: 390

Re: Backdoor Roth is complicated for taxes

It shouldn't be that complicated. I'm wondering if it actually got done in the correct way. If you supposedly "fixed" the federal return by doing something with the "Deductions section" that doesn't sound right to me. There should be nothing going on with deductions that has any ...
by HouseStark
Sun Feb 23, 2014 1:11 am
 
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth is complicated for taxes
Replies: 18
Views: 2487

Re: Form 8606 Info

Filing a current year Form 8606 may not be required in years when there are no additions to IRA basis, or any distributions that would require it, but I think it's still a darn good idea to generate one, whether or not it is included in the return. How many threads pop up here on BH from people that...
by HouseStark
Sat Feb 22, 2014 9:14 pm
 
Forum: Investing - Help with Personal Investments
Topic: Form 8606 Info
Replies: 20
Views: 1252

Re: Help Reporting RSUs on Taxes

You don't mention whether you have a state income tax, but that would likely be subject to amendment which would also produce a refund.
by HouseStark
Sat Feb 22, 2014 8:50 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help Reporting RSUs on Taxes
Replies: 4
Views: 454

Re: Help Reporting RSUs on Taxes

Hi, I have a question on what I'm supposed to do with RSUs on my taxes. In 2012, I sold some RSUs. When I did my taxes, ETrade had nothing in the "Cost Basis" column. That made me think, "Oh. These shares were *given* to me, so the cost is zero." So, I put that as my cost basis....
by HouseStark
Sat Feb 22, 2014 8:47 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help Reporting RSUs on Taxes
Replies: 4
Views: 454

Re: Do i need a new cpa?

Depending upon your area, many CPAs may not have experience with farming or timber sales. Those are not generally encountered situations in many practices. If you want some more satisfaction then finding a practitioner who deals with those situations would be recommended. You also have to keep in mi...
by HouseStark
Fri Feb 21, 2014 3:37 pm
 
Forum: Personal Finance (Not Investing)
Topic: Do i need a new cpa?
Replies: 10
Views: 1165

Re: Energy Efficiency Tax Credits are Back

Just to clarify a point about IRS Residential Energy Credits (Form 5695): The previous lifetime limit was $1500 prior to Dec 31, 2011, but the limit is now $500. I used the $1500 lifetime limit in my 2010 filing, so I cannot use the current $500 credit in my 2013 filing, correct? Thanks to any resp...
by HouseStark
Thu Feb 13, 2014 11:02 am
 
Forum: Personal Finance (Not Investing)
Topic: Energy Efficiency Tax Credits are Back
Replies: 4
Views: 858

Re: Realized Gain from Tax Exempt Funds

The OP could have miscalculated the actual gain, if increased basis from reinvested distributions was not taken into account, so the $1200 could not be correct. If it comes off the 1099-B, then it most likely is correct. Also, since all shares of the fund were sold, total gain is the same no matter ...
by HouseStark
Mon Feb 10, 2014 12:23 pm
 
Forum: Personal Finance (Not Investing)
Topic: Realized Gain from Tax Exempt Funds
Replies: 7
Views: 523

Re: Realized Gain from Tax Exempt Funds

Brokers and fund companies are generally required to report the basis of fund shares acquired beginning Jan. 1, 2012. For common stock shares basis reporting is generally required for shares acquired beginning Jan. 1, 2011. I guess that is "the story" they are obligated to tell. It is not ...
by HouseStark
Mon Feb 10, 2014 12:04 pm
 
Forum: Personal Finance (Not Investing)
Topic: Realized Gain from Tax Exempt Funds
Replies: 7
Views: 523

Re: Help with EIN, SSN confusion on W2

I would assume that you would like to have your W-2 earnings credited to your Social Security earnings record to increase your future Social Security retirement income. That's not happening if your W-2 is reporting your earnings by using your EIN. It doesn't happen with your income tax return, it ha...
by HouseStark
Fri Feb 07, 2014 8:50 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help with EIN, SSN confusion on W2
Replies: 3
Views: 283

Re: Help with Roth IRA & Retirement Strategies

Since your prior TIRA contributions were non-deductible, then you can determine your contribution basis for your and your wife's TIRAs. That piece of information is needed to determine either 1) the tax implication of any conversions of the existing TIRA balance to a Roth without additional non-dedu...
by HouseStark
Thu Feb 06, 2014 5:21 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help with Roth IRA & Retirement Strategies
Replies: 12
Views: 1408

Re: Help with Roth IRA & Retirement Strategies

Here is how our current retirement accounts stack up: His Traditional Non-Deductible IRA: $27,569 Her Traditional Non-Deductible IRA: $35,125 I would welcome thoughts on whether we should even be considered a Back door ROTH, costs associated to it we should consider or whether we continue with just...
by HouseStark
Thu Feb 06, 2014 12:32 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help with Roth IRA & Retirement Strategies
Replies: 12
Views: 1408

Re: If I contribute to IRA now, how soon do I get the tax fo

A 1099-R is used to report distributions from an IRA, among other purposes. If you're not taking a distribution (withdrawal) from an IRA, then there will be no 1099-R. So don't wait for one.
by HouseStark
Thu Feb 06, 2014 12:18 pm
 
Forum: Investing - Help with Personal Investments
Topic: If I contribute to IRA now, how soon do I get the tax form?
Replies: 14
Views: 743

Re: If I contribute to IRA now, how soon do I get the tax fo

If I contribute to IRA for 2013 now, how soon do I get the tax form, such as 5498, 1099-R etc? Thanks. Contributions to IRAs are reported on form 5498. Custodians are not required to issue form 5498 until May, for contributions of the previous calendar year, which makes sense since contributions ca...
by HouseStark
Thu Feb 06, 2014 11:49 am
 
Forum: Investing - Help with Personal Investments
Topic: If I contribute to IRA now, how soon do I get the tax form?
Replies: 14
Views: 743

Re: HSA and tax reporting (HDHP premium)

W-2 code W should report HSA contributions, both by the company and by the employee via payroll deduction (Sec 125). It absolutely should not report health insurance premiums paid, either the company or the employee share. The OP has it right. If it's not an HSA contribution, meaning it's not going ...
by HouseStark
Tue Feb 04, 2014 12:47 pm
 
Forum: Personal Finance (Not Investing)
Topic: HSA and tax reporting (HDHP premium)
Replies: 3
Views: 530

Re: Prices for mutual funds. What do I pay?

The result is that when buying mutual fund shares, whether Vanguard or other fund companies, you do not know for certain what price per share you will be paying, since your purchase order will not be executed until after the close of the current or the next trading day, whichever is applicable, as a...
by HouseStark
Tue Feb 04, 2014 12:01 pm
 
Forum: Investing - Help with Personal Investments
Topic: Prices for mutual funds. What do I pay?
Replies: 33
Views: 1905

Re: Backdoor Roth IRA, what to do with the 3 cent interest

Why would you be paying interest on anything in your IRA? Anyway, yes, you should convert the entire balance of your TIRA to your Roth, including the three cents of earnings. Then you should ignore the three cents in your tax reporting of the conversion, because it's 3 cents and the IRS will ignore ...
by HouseStark
Mon Feb 03, 2014 10:58 am
 
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth IRA, what to do with the 3 cent interest
Replies: 4
Views: 640

Re: Roth TSP reduces tax refund

The responses so far may be educated guesses, but if the OP wants an informed response, then provide a summary of 1040 line amounts without the Roth TSP entry and then with TSP entry. That is going to provide an immediate indication of what is changing and most likely lead to answering why. Without ...
by HouseStark
Sun Feb 02, 2014 12:56 pm
 
Forum: Personal Finance (Not Investing)
Topic: Roth TSP reduces tax refund
Replies: 21
Views: 1556

Re: Have you ever been audited?

A camera lens would be categorized as equipment, not supplies. Supplies are basically things that get used up, like toner, paper and other consumables. Equipment is a type of depreciable asset. A camera lens has a usable life of years. It is not used up or worn out by short term use. All photographi...
by HouseStark
Tue Jan 28, 2014 11:18 am
 
Forum: Personal Finance (Not Investing)
Topic: Have you ever been audited?
Replies: 8
Views: 797

Re: New Home Owner - Tax Questions

Damn math! Gets me every time.
by HouseStark
Fri Jan 24, 2014 6:52 pm
 
Forum: Personal Finance (Not Investing)
Topic: New Home Owner - Tax Questions
Replies: 48
Views: 2683

Re: New Home Owner - Tax Questions

primetime wrote:So regardless of what I put in escrow, it's $252.63 per month and $252.63*5= $1263.17


Sounds, right. I think it's a coincidence that they also collect five months of reserves.
by HouseStark
Fri Jan 24, 2014 5:59 pm
 
Forum: Personal Finance (Not Investing)
Topic: New Home Owner - Tax Questions
Replies: 48
Views: 2683

Re: New Home Owner - Tax Questions

My mistake, yes I meant RE taxes. On the settlement, it states that county property taxes from 1/1/13 to 8/28/13 was $1997.67. This is under "adjustments for items unpaid by seller" Then under "reserves deposited by lender" (my employer did not pay for the taxes) it states $1265...
by HouseStark
Fri Jan 24, 2014 5:39 pm
 
Forum: Personal Finance (Not Investing)
Topic: New Home Owner - Tax Questions
Replies: 48
Views: 2683

Re: New Home Owner - Tax Questions

My 1098 reads $2692.79 in box 1, "Mortage Interest recieved from Payer/Borrower" It has $1884.00 in box 2, "Points paid on purchase of principle residence" In box 5, it says $0.00 for "real estate taxes" No mention of personal property taxes paid on this form. I contac...
by HouseStark
Fri Jan 24, 2014 5:11 pm
 
Forum: Personal Finance (Not Investing)
Topic: New Home Owner - Tax Questions
Replies: 48
Views: 2683

Re: IRS Form 941 - Income Withholding [S Corp owner]

I don't know of any rule that would prevent doing a payroll in only the final quarter of the year. I suppose some S-corps do such a thing for cash flow management or uncertainties. As long as the 941s are correct I don't know that it would raise any issues. If a business is ongoing with some stabili...
by HouseStark
Fri Jan 24, 2014 1:33 pm
 
Forum: Personal Finance (Not Investing)
Topic: IRS Form 941 - Income Withholding [S Corp owner]
Replies: 8
Views: 581

Re: IRS Form 941 - Income Withholding

I'm reasonably certain I'm on the right track. I'd confess that my OP may not have been eloquent. The S Corp cut me a check in 2013 Q4. This was the first quarter in which I received an income. I paid myself only once in that quarter. The withholding from that paycheck will be due via EFTPS by Janu...
by HouseStark
Fri Jan 24, 2014 12:43 pm
 
Forum: Personal Finance (Not Investing)
Topic: IRS Form 941 - Income Withholding [S Corp owner]
Replies: 8
Views: 581

Re: IRS Form 941 - Income Withholding

I'm full owner of an LLC filing as an S Corp for tax purposes. I'm due to file my first quarterly 941 by the end of the month. Looking for a little help from those who've done it. Everything on 941 appears to apply to W-2 wages, and that makes sense - it's my understanding that any distributions (n...
by HouseStark
Fri Jan 24, 2014 12:04 pm
 
Forum: Personal Finance (Not Investing)
Topic: IRS Form 941 - Income Withholding [S Corp owner]
Replies: 8
Views: 581

Re: Qualified vs Non-qualified Dividends

Interesting, I didn't realize it was reported like that. Although I don't think that would apply to these two indexes, but good to know in general. Since one common characteristic of index funds is a much lower turnover ratio, I would expect most such funds are able to avoid short-term capital gain...
by HouseStark
Fri Jan 24, 2014 11:15 am
 
Forum: Personal Finance (Not Investing)
Topic: Qualified vs Non-qualified Dividends
Replies: 22
Views: 2356

Re: Qualified vs Non-qualified Dividends

I also got my 1099 from Fidelity and even FUSVX had 1% non-qualified dividends. As livesoft points out, not all dividends are automatically qualified if you hold them for 60 days. They must also be from one of these four companies: 1. A US corporation 2. The corporation is incorporated in a U.S. po...
by HouseStark
Fri Jan 24, 2014 12:36 am
 
Forum: Personal Finance (Not Investing)
Topic: Qualified vs Non-qualified Dividends
Replies: 22
Views: 2356
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