Bogleheads.org

Value on the date of gift is irrelevant. Donor's basis carries over to the donee. John Yes, of course. Thanks! Not quite. Donor's basis was 5 cents. The value on gift day was 3 cents. The OP sold it for 2 cents. What's the OP's basis? If the OP sold it for 4 cents, what's his basis? OK, so that doe...

bicker, the stock wasn't inherited. Inherited stock is an easier problem. Is it though? I thought someone said that the issue is determining how much the stock was worth when it was gifted. Doesn't the tool within TurboTax for inherited shares do just that? I know that the law is different (in term...

mlewis wrote:Why would you use zero...

That was my advice, also, but Discobunny1979 says it's the worst advice he's seen. Now there's two of us giving "the worst advice" Disco has ever seen.
John

Certainly don't claim a zero basis. Put a note in your file as to how you estimated the basis and don't give it another thought. I'm sorry, but this is the worst piece of advice I've heard in this thread. Sorry you feel that way, Disco... In my opinion, the OP needs to have proof that it was a &quo...

IMO, everyone is making this much too complicated. Make a reasonable good faith estimate of the cost, which you appear to have already done, and use that figure. Do you really think the IRS is going to question the basis on a sale when 95% of the proceeds is reported as LTCG? If you were claiming $1...

Why not just get a chashier's check on the one account and deposit it to the other?
John

imgritz wrote:Never mind. I'll call the Vanguard CFP's.

I simply thought the the multiple taxable events were against Boglehead theories.

Are you sure you still have a $10,000 carryover from 2008? You may have consumed some of that in 2009, 2010 and 2011.
John

This has been discussed many times on this forum, and what you propose is known as a "step transaction" by the IRS. The courts have ruled that the IRS can ignore the various steps to determine the true nature of the transaction. If all the facts were revealed they would conclude the interm...

I don't include it in my asset allocation. And I don't lose sleep over how the DAF money is invested, or what the expense ratio is for the DAF account. The money belongs to charities (just not yet specified) and I cannot get it back. The charities are taking the risk and paying the ER. Best wishes....

I've been involved with the administration of Florida estates for over 35 years, and have never heard of the "punishing" costs in administering a Florida estate. Most attorneys charge on an hourly basis whether there is a probate administration or not. I suspect some of that talk may come ...

...or xyz by abc, his attorney-in-fact.
John

Who knows what the tax law will be 30 years from now. I certainly wouldn't unnecessarily pay taxes 30 years in advance, but would much rather have that tax money compound in my portfolio for 30 years.
John

has anyone heard of this site? http://incomesolutions.com/HomePage.aspx seems they have institutional pricing for annuities which can save about 5% off retail, they show you how to compare quotes and it is run by some professor...that what it looks like...maybe they give the house odds? Yes, it's a...

How much do you have to go to the trouble of realizing a 1.5% loss? Hardly seems worth the trouble and risk unless you have a sizeable six-figure holding.
John

Hartford Insurance Company is one choice.
John

This is so even if you are retaining a traditional life estate in your home and giving only a remainder interest to the child. This is a taxable gift of a future interest based upon the full value of that remainder interest. If it is valued in excess of $13,000.00, then you must file a gift tax ret...

It's very rare for anyone to get seasick on a cruise ship. Most of the time you are hardly aware you're at sea. Try it. You'll probably like it. We've been on 25+ cruises and now have grown a bit tired of it, but enjoyed it at the time.
John

From your additional information, it appears he is paying the tax on the withdrawal and you don't have to worry about it. As for the 1099 on the bonds, that will come in January.
John

grabiner wrote:You don't even file Form 1040-ES with the IRS.

Oh yes you do! How else would the IRS know where to credit the deposit? You are required to send the 1040-ES voucher with your check unless you use online payments.
John

What do you mean "from my ex-husband's retirement" & how long ago did you receive it? What is from an IRA or 401(k) account? As for the savings bonds, you'll receive a 1099-INT from the bank or agency that cashed the bonds. You will pay tax on the difference between the cost of the bon...

Don't send the 1040V. That is for the balance due on a return. Send the 1040-ES with your check. You can send it anytime, although I'm not sure why you're so anxious to part with the funds if you don't need to make estimated payments.
John

Tell him he's nuts. Vanguard doesn't have any funds that charge even 1%. Here's a list of all the funds with the expense ratios of each:
https://personal.vanguard.com/us/funds/ ... torder=asc
John

Aren't you overlooking the fact that the IRA withdrawal would be taxable to you?
John

rocket wrote:I know lawyers who say the CFP exam is just as difficult as the bar exam.

I suspect these are lawyers with short memories. Regardless, qualification to take a bar exam requires seven years of university study and two degrees. What are the academic requirements for the CFP?
John

You show your income as between $150K and $180K and you are single. I would think you could pay this out of current earnings.
John

2008
John

kikie wrote:so what would be the pros and cons of naming the RLT as the beneficiary or the IRA

my client, does not want to name outright a person a bene on the IRA/401k portion...

What happened to your original question that I answered? It appears you deleted it.
John

Looking at http://www.immediateannuities.com and assuming it is a Life Annuity, it almost seems too good (to be true). Agreed! I wonder if OP is talking about something else other than an SPIA. Looking back on his earlier posts it appears he might be talking about a government pension. John

What are the terms of the SPIA? Is it a single life pure annuity with no adjustments or refund features? Are you male or female? The return seems exceptional at age 60. The Websites are showing returns in the 6% range.
John

I thought of them that way initially, but now the bonds purchased in the early years are so attractive I'd hate to part with them. Many of them also have more than doubled in value, making the potential income tax obligation a bit significant, so I'll just hang on to them indefinitely.
John

This is your third thread and we had been hoping to hear further from you on the prior two. It's always good to know if our responses have been helpful. Will be be hearing further on this one?
John

You could inquire at the Assessor's office without making a formal appeal.
John

Everything you describe is a gift and should be reported if it exceeds the annual exclusion. Taxable gifts will usually be picked up by the IRS on audits for other purposes, usually income tax or estate tax audits.
John

snyder66 wrote:Airfare will be brutal between Christmas and New Years.

If you can get a flight at all...
John

A bank doesn't have the right of offset against assets they hold as custodian. Even if they did, they are acting as custodian for Vanguard, not for you. You could have a personal custody account with Chase and they still wouldn't have the right of offset. Not to worry.
John

Simple answer: No. Once you buy the SPIA taxable payments will be made to you, not to the IRA
John

What about an "alternative asset" IRA? I think that is what they are called. They are expensive and you have to use a special custodian, but they can invest in just about anything. The IRA would buy the house as an investment. Not sure what happens when you live in the house. I assume you...

fsrph wrote:I agree with the others that the Gulf/ocean may be too cold to swim.

Gulf temperature in Sarasota today is 67. As the locals like to say, only the Canadians are swimming.
John

Livesoft is correct. Borrowing from your IRA or pledging it as collateral is a prohibited transaction which can result in serious tax consequences including disqualification of the IRA.
John

Rupert wrote:Try the Sandestin Golf and Beach resort just outside Destin...It's fairly cheap this time of year

Average temperatures in Destin, Florida in late December are highs of 62 and lows of 37. Now you know why it's "cheap this time of year".
John

Christmas week is one of the busiest weeks of the year in Florida with heavy traffic and most accommodations sold out. At this late date you will probably have trouble finding a suitable place for the week, at least in South Florida.
John

My point about corporate altruism was rooted in the fact that the Wal-Mart greeters provide absolutely zero value to the company but were paid to say hello and goodbye. Not a terrible part-time job in retirement. I'm not so sure there isn't more to their job. Seems to me they're always keeping an e...

A SPIA is another possibility. About $73,000 would buy a joint and survivor annuity paying $500 a month.
John

Dick, if you haven't bought the annuity then don't. There is no math that makes this a good investment (IMO) unless of course you assume you will beat the annuity odds and outlive the larger part of the population. Also, if you plan on having no heirs, you can make a case that this is one way to ce...

The logic of putting the low return asset in the IRA is faulty because it ignores risk. If the high return and low return asset have the same risk you should not buy the low return asset. If they have different risks and are part of a well planned portfolio then putting the high return/high risk as...

In the past I have always advocated that it was "silly" to put an annuity inside an IRA because the ONLY thing the annuity has going for it is it's tax-advantage, so why waste the tax-advantage of your IRA money by putting an annuity there - use it in a taxable account. I am another of th...

I thought your heading was about lawyers!
John

You're fooling yourself to think you can double your money by losing the ring. Do you really think insurance companies are going to pay you twice what you paid for the ring? If that was the case, I could make a living by buying, insuring and losing valuable jewelry and so would many other people. Fo...

2stepsbehind wrote:Ha! But even the nonwealthy can occasionally fly first class, take a cruise, join the local country club etc... What are the equivalents in the trusts/estates world?

There aren't any.
John