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What FICA taxes does a retired 70+ year old person under independent contractor status pay? Is it the full 15.3%? If so, there isn't much of a benefit for deductibility since they are likely already in a low tax bracket, right?

Thanks!

Hi, If one is "retired" but works part-time as an independent contractor, and has a taxable brokerage account, can he: - deposit the part-time income into a self-employed 401k - withdraw an equivalent amount of money from a taxable account The goal would be to reduce AGI to avoid taxation ...

Hi,

If one is collecting Social Security at full retirement age, and that person works part-time as an independent contractor, does he have to pay Social Security tax? If so, will this payment increase his benefits?

Thanks.

Great discussion. The original question was really an academic exercise but one that, if you know the answer to, you might apply to real life analysis. In a latitude like Florida or Texas, I'm surprised people say South would be hotter than West... Although the sun is constant, the indirect angle mi...

All else equal, assuming only 1 side of the house with windows for arguments sake, which is cooler for each of these 3 comparisons: 1. "N vs NE" - so far, consensus is N is cooler than NE 2. "SE vs S vs NW" - so far, consensus is NW is cooler than SE is cooler than S 3. "SW ...

For which side, let's assume the house is a cube with only 1 side of windows, the rest walls. Which way should the window-side face to reduce the most heat (all other variables equal, assume Florida as the location)?

Could the group come to a consensus on what they believe is the best direction (in order, 1 to 8) that a house should face if the goal is to reduce the amount solar heat (during the afternoon and evenings since most people work during the day)? Coolest 1. N 2. NE 3. E 4. SE 5. S 6. NW 7. SW 8. W Hot...

Actually, I only deposited a small amount (much < $17,500) and need to reverse it. I am assuming that the Corrective Distribution does not apply in this scenario? Are there any other solutions? Here is a link to the "reversion" tax... which I am unable to interpret. http://www.law.cornell....

If one deposited too much money into a Solo-401k for 2012, does anyone know how to reverse this? The Fidelity representative said the two options would be to 1) carry the funds over to 2013 and pay a 10% penalty; or 2) talk to your accountant about "reversion", which may or may not have a ...

no response.

How much would it cost to renovate an existing home to carve out an attached but separate (sound-insulated wall, private entrance) mother-in-law type of suite (1-BR, office, living room, 700 sq-ft)? How much would it cost to convert a 3-car garage into a similar mother-in-law type of suite, assuming...

How do you guys organize the files once they are scanned?

By date, topic, etc.?

PDF's in Folders?

The obvious answer is to buy the house and rent it out for $1900 a month and then rent an apartment to live in until you decide where you really want to live. If the numbers are as you describe, the return on a $12,500 investment is very high, counting the rent cash flow, tax deduction, and depreci...

Please let me share the situation. I had originally thought Renting initially would be a no-brainer but, after looking into the details a little more, I'm not so sure. THE BACKGROUND The person is moving to a new area. There is a small chance the person will leave within a few years but otherwise an...

Hi Mel,

Does this app allow Applications do be shared?

We have purchased an Ipad for our parents, who often watch our kids. We would like them to have access to all of our purchased applications, many of which are children's applications. Is there any way to do this without setting up their Ipad using our Apple ID? Is there any disadvantage to doing thi...

Do you recommend obtaining a separate Business Credit Card for a moderate amount of business-related expenses? Or should one just use his Personal Credit Card and keep meticulous records?

How do you handle dual-use expenses such as Gas, Cell phone, Internet, etc.?

Thanks!

Hi, 2013 will be the first year that I will need to keep receipts and detailed records for the itemized sales tax deduction. For those who have successfully done this, can you share your detailed strategy tips and technology tools to do this? - Quicken vs. Excel (add a column for sales tax) - Manual...

Thank you all for your thoughtful comments. If one is renting a house, how much would it cost to install a gas/propane heater? If one moves to a different house say in 1-year, how much would it cost to "uninstall" and "re-install" the gas/propane heater at the new house? Are ther...

Hi, I reviewed prior Boglehead threads on pool costs and also read a bit on the internet. Is the following reasonable for total costs of a reasonably-sized heated pool: Assumption: Heat pumps last longer and have lower operating costs than gas heaters, but one will likely not recoup the higher initi...

Hi, Two part question... Does the Fidelity FIA American Express credit card have all of the same perks as a "regular" American Express credit card? What are some things that you specifically use your AmEx for? - Expensive items for warranty extension - Car rentals for better coverage - etc.

If one's still-working parents live with them for free, and they work from home, can the homeowner deduct the parent's home office from their taxes? What about if the homeowner also has a home office himself?

Is there a strategic way to buy multiple plane tickets at the lowest cost with adjacent seats? I noticed selecting, say, 4 tickets on Kayak significantly increases the average price of a ticket. Does this significant price increase simply reflect the individual prices of each ticket (2nd ticket is m...

Hi, Texas has a unique real estate situation in that the housing is inexpensive, but property tax is very high (2.0-2.5%). For housing that would sell for around $400-500k, comparable rentals seem to be around $2000-2500/month. Also, most people in these nicer neighborhoods buy rather than rent, so ...

Hi, I have a question regarding the $17k annual limit for 401k deposits. My colleague worked at one company for the first 6 months of this year and deposited about $11k into a Fidelity 401k. He now has a separate Schwab 401k available at a new company for the remainder of the year. How can he precis...

Hi,

Do you know of any particularly great educational items/tools/apps/curricula for a 2-3 year-old toddler? For example, arts and crafts kits, puzzles, iPad educational apps, nursery school "curriculum", etc.

Thanks!

Hi, If one is buying two separate overlapping term life insurances (10-year and 20-year), is there any significant advantages or disadvantages between using different companies or the same companies? The only thing I can think of is, advantage : diversifying companies in case of failure, although th...

Thank you for such thoughtful replies, everyone.

I'm not sure I fully understand, but is the bottomline consensus for the Husband to delay to 70 years and the Wife to take at 62 years while still continuing to work if she desires (she brings in $15-30k per year gross)?

I know there are lots of threads regarding the topic of when to take SS but, if you could please give a recommended age and a brief reason why, that would be greatly appreciated: Husband: currently 65, perfectly healthy, 95 year old parents. Wife: currently 60, significant health problems. Both work...

Thanks for the replies. Please try not to read into my question phrasing, epilink or relentless, as I purposely attempted to word my question in a neutral way (an obvious fail). I just want to better understand the thinking and hard-and-fast rules of both sides of the argument, as my (future) child(...

Hi all, What are your thoughts on "redshirting" a school age child? Is there any mechanism that allows the school district to prevent this? For those who don't know, redshirting is when the cut off birth date for entering kindergarden is, for example, September 1 and the child in question ...

Thanks for the replies.

This was actually more of a tax question than a general rent-vs-buy question, specifically with respect to comparing investing in 401k/IRA vs. buying real estate, given the variables of high tax bracket, high state income tax, AMT, etc.

For a dual-income family making $450k (one independent contractor, one employee), is it better to: A) maximize IRA/401k's ($50-100k per year) and RENT an equivalent house. B) BUY an equivalent house, which would significantly reduce the amount put into IRA/401k's (but equal exactly the total numeric...

Thank you all for your replies. We live in CA, which has a 9% marginal tax rate, so state income taxes and charitable contributions alone will top the standard deduction. I guess my number one concern deals with the job-related deductions: not knowing the nuances of whether a grey area is deductible...

The fund's strategy is spelled out in the prospectus. 80% in U.S. Treasury securities . The have some leeway with the other 20%. A lot of funds with Treasury in their names have the same policy. Fidelity's Treasury index funds, for example. I own FLBIX and am trying to determine if it is 100% Treas...

Hi, It seems like many Bogleheads recommend doing one's own taxes with Turbo Tax. Our tax situation is mildly complex but, as of this year, I haven't learned the in's and out's regarding taxes. Our situation is as follows: my wife and I are both employed (not self-employed), do not own a house, and ...

If cars run most efficiently (power yielded per energy input) at a moderate RPM -- just like bicycling in the "correct" gear yields the best combination of effort and speed -- then which is more efficient: 1. Accelerating moderately to RPM's in 3000's, up to the desired speed, then cruisin...

If I am understanding correctly: For higher marginal tax bracket incomes, they should max out 401k/IRA's (even to $65k) before they seek a home for the mortgage interest deduction. As a corollary, buying a home for tax advantages is secondary to the 401k/IRA tax advantages and should only be pursued...

For someone who wants to own a home, a superior strategy may be to buy a home that meets their needs at a price that allows them to continue to max out their retirement contributions. That is the ideal scenario but assume total income is insufficient to fund both a needed house and maximized 401k/I...

Without getting too detailed (unless you need it for your analysis), which do you think is a superior tax reduction and retirement savings strategy for someone in the highest income tax bracket: Maximizing 401k/IRA accounts to $65k ($49k SEP-IRA, $16.5k 401k) - assume proceeds invested in something ...

This may sound harsh but the infant isn't going to remember any of this. Would grandparents take the child for a couple weeks? It would save you$3,000 and probably make the trip more enjoyable for you. My thoughts exactly, but grandparents are coming. I wonder if there would have been large (or min...

Just wanted to get some quick Boglehead opinions on the value of the following deal for a European cruise vacation: 2-week cruise Stops at 8 different countries with 8 paid tours to historical sites Family of 3 (mom, dad, 1 year old infant) Total cost (including airfare/everything): Almost $11,000 (...

Default User BR wrote:You can't sell the money. You have to sell shares.

Thank you, Brian and everyone else. That clarifies things completely!

Dude, I hope that isn't your head. No your entire capital gain is $10,000. If you sold all $60,000, then the full $10,000 would be taxable at short term or long term capital gains rates, depending on how long you have held the holding. If you sell $10,000 your capital gain which would be taxable wo...

Quick (and likely stupid) question: If one has $50,000 invested in X, and X has risen to $60,000; and the investor wants to rebalance to $50,000; does the $10,000 sale count as "capital gains earnings" and is thus taxed? (Or can you count the $10,000 sale from the original $50,000 and thus...

Alan,

Her 403b does have a loan feature, with details nearly identical to what Bob described except the rate is prime plus 1%.

As far as I know, it applies to current employees. I am contacting them to see if it applies to ex-employees.

Thank you all very much for your excellent, detailed answers. Per your advice, I will keep the 403b in the current plan. The preserved backdoor Roth option and superior legal asset protection are decisive for me personally, for reasons of increasing income. I do not use TradeKing for options or day ...

Hi, I searched the forums but could not find any definitive threads to address my specific situation. My wife is switching jobs. She currently has a 403b with approximately $50k in Vanguard Institutional funds (ER 0.07%). Most people recommend to "transfer out" the 403b, regardless of how ...

Biason mentioned an interesting concept on a different thread: while TBM has had a total return more than Treasuries, when viewed as a complete portfolio, TBM+TSM did worse than Treasuries+TSM because of the rebalancing bonus. My question is, are the numbers widely distributed regarding the PP (whic...

For catastrophic insurance, I very much agree on the penny-wise and pound-foolish concept. However, for a residual value of, say, $15,000 -- concurrent with an emergency fund larger than that size -- my thoughts now focus on value. Playing devil's advocate, as I own collision but am considering drop...