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Reciprocal gifting to reduce capital gains

I was hoping that one of you tax accountant types might have an answer to the following question(s): I have some stock in a taxable account that has appreciated quite a bit, so it would generate a significant taxable gain upon sale. My father is retired and quite elderly, with no taxable income othe...
by fdeanw
Fri Dec 05, 2014 6:04 pm
 
Forum: Personal Finance (Not Investing)
Topic: Reciprocal gifting to reduce capital gains
Replies: 1
Views: 465

Re: trading in iPhones for the latest: Apple or Verizon?

I would not trust Verizon. My daughter was told by Verizon, after filling out its online form, that she would receive a $200 rebate for trading in her old iphone 4 for a new iphone 6. After paying the full price for the new iphone and mailing her old iphone back to Verizon, they sent her a debit car...
by fdeanw
Wed Dec 03, 2014 1:06 am
 
Forum: Personal Consumer Issues
Topic: trading in iPhones for the latest: Apple or Verizon?
Replies: 8
Views: 1304

Re: What if the institution doesn't accepts 529s?

I guess my question is, is the official list just for direct-from-529-payments and for all other schools just keep the receipt, or is the official school list exhaustive and to pay with a 529, does your school absolutely have to be on that list? What list are you talking about? I tried to link to t...
by fdeanw
Wed Sep 10, 2014 10:55 pm
 
Forum: Investing - Help with Personal Investments
Topic: What if the institution doesn't accepts 529s?
Replies: 11
Views: 1214

Re: What if the institution doesn't accepts 529s?

You don't necessarily have to make the payments to the school directly from your 529, do you? I make the payments to my son's college myself and then reimburse myself from the 529 fund. I think this is perfectly legal as long as you keep adequate records.
by fdeanw
Wed Sep 10, 2014 7:32 pm
 
Forum: Investing - Help with Personal Investments
Topic: What if the institution doesn't accepts 529s?
Replies: 11
Views: 1214

Re: Why did REITs drop today?

Interest rates rose somewhat, and REITs generally fall when that happens. Could be profit-taking, too, since REITs have risen so much this year.
by fdeanw
Wed Sep 10, 2014 7:10 pm
 
Forum: Investing - Theory, News & General
Topic: Why did REITs drop today?
Replies: 26
Views: 4303

Re: Recommendations for Cordless Phone System for Home?

Thanks for the recommendations, all. I was getting lost trying to keep track of all the different model numbers and alternatives even within one manufacturer. I'm going to give the Panasonic a try. (I just double-checked and our existing Panasonic system is actually eight years old -- tempus fugit -...
by fdeanw
Sat Aug 30, 2014 5:28 pm
 
Forum: Personal Consumer Issues
Topic: Recommendations for Cordless Phone System for Home?
Replies: 14
Views: 1174

Recommendations for Cordless Phone System for Home?

We have three landline phones in different rooms in our home, and they all have charging and other problems that have led us to be in the market for a new cordless telephone system. (By cordless, I mean that the handset sits and charges up in a base unit that is plugged into a wall jack, but the han...
by fdeanw
Fri Aug 29, 2014 6:13 pm
 
Forum: Personal Consumer Issues
Topic: Recommendations for Cordless Phone System for Home?
Replies: 14
Views: 1174

Re: California residents - do you have earthquake insurance?

Live in the Westside of Los Angeles. Don't have EQ insurance. In the Northridge quake, we lost our chimney and suffered some other damage, but it cost less to repair than the amount of the deductible would have been on a policy at the time, and FEMA came through with a nice grant to help pay for muc...
by fdeanw
Tue Aug 26, 2014 10:44 pm
 
Forum: Personal Consumer Issues
Topic: California residents - do you have earthquake insurance?
Replies: 54
Views: 3376

Re: Backdoor Roth IRA Timing Question

One more question for you, DSInvestor, if you are still with me: If I make the non-deductible contribution into the IRA and keep it there for a while, hopefully it will be earning some income while in the account. Before I make the Roth conversion the following year, do I have to rollover all of tha...
by fdeanw
Tue Aug 26, 2014 4:49 pm
 
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth IRA Timing Question
Replies: 10
Views: 982

Re: Backdoor Roth IRA Timing Question

What about delaying the 403b rollover to IRA until 2015? Yes, thanks DSInvestor. I think that's what I'll do. It seems a lot easier than having to worry about the recharacterization for 2014. I'll just have to hope that Schwab still has the bonus offer available in 2015. The key was your point that...
by fdeanw
Tue Aug 26, 2014 12:32 am
 
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth IRA Timing Question
Replies: 10
Views: 982

Re: Backdoor Roth IRA Timing Question

If she rolls over to IRA, the 12 month window ends AUG 2015. She can contribute for 2014 in 2014 and delay conversion step until 2015. Aha. That's what I was looking for. However, since I already converted her 2014 non-deductible IRA contribution to her Roth IRA, I'm going to have to recharacterize...
by fdeanw
Mon Aug 25, 2014 11:13 pm
 
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth IRA Timing Question
Replies: 10
Views: 982

Re: Backdoor Roth IRA Timing Question

So is that 200 bucks you get for transferring 50k? http://content.schwab.com/web/retail/public/schwab_investor_reward/ Doesn't seem worth losing the roth conversion at low tax rate to me. Mike Yeah, it's 200 bucks. But I think if I wait until next year, then I'm not really losing the tax-free conve...
by fdeanw
Mon Aug 25, 2014 10:19 pm
 
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth IRA Timing Question
Replies: 10
Views: 982

Backdoor Roth IRA Timing Question

My wife and I have been doing backdoor Roth IRA conversions for the past couple of years. She has both an IRA account and a solo 401(K) account at Schwab. A couple of years ago, she rolled all of her deductible IRA funds into the solo 401(K) account, leaving only the non-deductible contributions, wh...
by fdeanw
Mon Aug 25, 2014 5:04 pm
 
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth IRA Timing Question
Replies: 10
Views: 982

Re: Advice on Keeping Inexpensive Long Term Care Policy

$200 a year ? For >$100k in total coverage? Assuming the insurer isn't about to go under, and there's no known huge increase coming up, this sounds like as close to a no-brainer as one could imagine, in insurance. The one thing to check, if it's even possible, is whether the insurer has a history o...
by fdeanw
Tue Jul 29, 2014 6:37 pm
 
Forum: Personal Consumer Issues
Topic: Advice on Keeping Inexpensive Long Term Care Policy
Replies: 7
Views: 757

Advice on Keeping Inexpensive Long Term Care Policy

My wife recently retired from her teaching position at age 64. Part of her benefit package was an inexpensive long-term-care insurance policy, covering only her (not both of us), with Unum (which has stopped selling new policies but continues to honor these existing policies). We now have the option...
by fdeanw
Tue Jul 29, 2014 3:51 pm
 
Forum: Personal Consumer Issues
Topic: Advice on Keeping Inexpensive Long Term Care Policy
Replies: 7
Views: 757

Re: Sell stocks and pay taxes VS. hold to avoid taxes

To build upon SteveM's suggestion, I was in a similar situation and set up a donor advised fund. Each year I contribute the most appreciated securities that I want to get rid of to the fund and use those for charitable contributions for that year and in the future. I then felt comfortable selling of...
by fdeanw
Sat May 17, 2014 2:05 pm
 
Forum: Investing - Help with Personal Investments
Topic: Sell stocks and pay taxes VS. hold to avoid taxes
Replies: 25
Views: 1657

Re: Very basic social security question

I don't think you told us her age (or more importantly, how many months younger than you she is) or what her FRA is (she might have been born in 1960 and have an FRA different than 66). My wife is six months younger than I am. (I was born in January, she in July.) So, do I gather that it would make...
by fdeanw
Sun May 04, 2014 4:45 pm
 
Forum: Personal Finance (Not Investing)
Topic: Very basic social security question
Replies: 26
Views: 2131

Re: Very basic social security question

Thanks, SSCritic. I couldn't figure out how to separate out the effect of my continuing to work until 70 (and replacing the lower earning years with higher earnings) and the impact from merely deferring claiming benefits until age 70. Am I correct that if I continue to work and earn at least the sam...
by fdeanw
Sat May 03, 2014 5:00 pm
 
Forum: Personal Finance (Not Investing)
Topic: Very basic social security question
Replies: 26
Views: 2131

Re: Very basic social security question

I have a different basic question about how to interpret the estimated benefit information that SSA provides. I am 63, have working credits for 35 years (earlier years at lower earnings than more recently), and the SSA provides me with three different benefit estimates: "At your current earning...
by fdeanw
Sat May 03, 2014 4:35 pm
 
Forum: Personal Finance (Not Investing)
Topic: Very basic social security question
Replies: 26
Views: 2131

Re: Best car rental website?

I use one of the travel sites (Expedia, Kayak, etc.) to get a sense of the rental rates for the rental date I want, then go to one of the rental car company sites to make a reservation with them as far in advance as possible/practical, making sure that the reservation can be cancelled without charge...
by fdeanw
Tue Mar 18, 2014 7:45 pm
 
Forum: Personal Consumer Issues
Topic: Best car rental website?
Replies: 30
Views: 2101

Re: New graph on Personal Capital Dashboard

Mine showed up immediately on the front page when I logged in to the site. The number seems awfully high to me -- 8.6% of our investment portfolio and 5.7% of our total net worth, including our residence. They also claim that it's in real dollars and can be sustained at that level with annual increa...
by fdeanw
Tue Mar 18, 2014 1:31 pm
 
Forum: Personal Finance (Not Investing)
Topic: New graph on Personal Capital Dashboard
Replies: 12
Views: 1755

Re: Taxes and Paying for college from 529 or UTMA Account

Jared, thanks so much. That article addresses exactly what I was interested in determining. No definite answer with respect to the 529 account payments, but at least I know I'm in good company in not knowing the definitive answer. :)
by fdeanw
Tue Mar 18, 2014 1:02 am
 
Forum: Personal Finance (Not Investing)
Topic: Taxes and Paying for college from 529 or UTMA Account
Replies: 6
Views: 533

Re: Taxes and Paying for college from 529 or UTMA Account

Thanks, pshonore, but I get stuck at the very first line of the worksheet, as to whether the 529 funds or custodial account funds constitute "funds belonging to the person you supported." There's little doubt that if that is the case, then my son would be providing more than half of his su...
by fdeanw
Mon Mar 17, 2014 10:51 pm
 
Forum: Personal Finance (Not Investing)
Topic: Taxes and Paying for college from 529 or UTMA Account
Replies: 6
Views: 533

Taxes and Paying for college from 529 or UTMA Account

If a child's college expenses, including room and board, are paid for either from a 529 account or a custodial UTMA account, may the child be considered to be providing more than half of his or her own support, so as to be eligible to claim a personal exemption on his or her income taxes? The reason...
by fdeanw
Mon Mar 17, 2014 2:21 pm
 
Forum: Personal Finance (Not Investing)
Topic: Taxes and Paying for college from 529 or UTMA Account
Replies: 6
Views: 533

Re: Maxing 401k into the 15% bracket vs taxable

Wouldn't it make more sense to fill up the 15% bracket by converting some tax-advantaged to a Roth rather than backing off and investing an equivalent amount in taxable? My sense is that Roth gives you even more flexibility as you move forward, because it's not too difficult to pull the contribution...
by fdeanw
Tue Feb 04, 2014 12:34 am
 
Forum: Investing - Help with Personal Investments
Topic: Maxing 401k into the 15% bracket vs taxable
Replies: 16
Views: 861

Re: Considering a "Year Off" from retirement contributions..

It sounds to me from both your question and your responses that you've thought about this for a while, and you are not a frivolous spendthrift. I say, "go for it." Saving for retirement is important and is the focus of a lot of attention on these forums (and rightly so), but you could get ...
by fdeanw
Fri Dec 13, 2013 8:36 pm
 
Forum: Investing - Help with Personal Investments
Topic: Considering a "Year Off" from retirement contributions.....
Replies: 64
Views: 5665

Re: Unemployed for 2013- IRA and Roth deposit options?

Gambler wrote:i'm single.

unemployment benefits are taxable.
profit from my stock sales are taxable.

so why aren't they counted?
does that mean I cant make a $5000 deposit into my Roth acct for 2013?

as for Roth conversion, do I have to do it in 2013 or before april 15,2014?


You have to do it in 2013.
by fdeanw
Fri Dec 06, 2013 2:36 pm
 
Forum: Investing - Help with Personal Investments
Topic: Unemployed for 2013- IRA and Roth deposit options?
Replies: 6
Views: 420

Re: In-and-Out IRA Rollovers Within a Calendar Year?

Trustee to trustee transfers are only permitted from one IRA to another IRA. There is no limit on the number of trustee to trustee transfers from an IRA. No 1009 reporting. Thanks, ManwithNoName. When I did the first transfer from my Individual 401(k) to the PenFed IRA, it was done as a trustee-to-...
by fdeanw
Tue Dec 03, 2013 11:09 pm
 
Forum: Personal Finance (Not Investing)
Topic: In-and-Out IRA Rollovers Within a Calendar Year?
Replies: 7
Views: 401

Re: In-and-Out IRA Rollovers Within a Calendar Year?

Thank you, G-Money, ThePrune, and Alan S., for your assistance. I did read through the IRS publications, but I did not see anything specifically related to a transfer between an IRA and an Individual 401(k), and I wasn't sure whether my individual 401(k) should be treated like a Keogh because I am s...
by fdeanw
Tue Dec 03, 2013 9:05 pm
 
Forum: Personal Finance (Not Investing)
Topic: In-and-Out IRA Rollovers Within a Calendar Year?
Replies: 7
Views: 401

In-and-Out IRA Rollovers Within a Calendar Year?

Are there any adverse tax implications or other legal issues involved in rolling over money into and out of the same IRA account within a calendar year? I rolled over money from my individual 401(k) account to a 3-year IRA certificate at PenFed earlier this year. Now, however, in order to take advan...
by fdeanw
Tue Dec 03, 2013 2:49 pm
 
Forum: Personal Finance (Not Investing)
Topic: In-and-Out IRA Rollovers Within a Calendar Year?
Replies: 7
Views: 401

Re: Gee, I coulda had an I-Bond instead!

And don't forget using a living trust to get another $10K per year. You could set up your own trust fairly quickly using the Nolo Press book, then open an entity account at TD in about 10 minutes. Getting an extra $10K for my trust is much easier than getting an extra $5K by overpaying my taxes and...
by fdeanw
Sun Nov 17, 2013 4:14 pm
 
Forum: Investing - Theory, News & General
Topic: Gee, I coulda had an I-Bond instead!
Replies: 53
Views: 4549

Re: Hertz PlatePass Program--Feel Burned

I think the car companies get you either way. Either they charge you using the Easy Pass, or if you don't sign up for Easy Pass, then you get charged an "administrative fee" for each unattended toll booth you pass through when the highway system hits up the rental car company for the fees ...
by fdeanw
Mon Sep 30, 2013 6:24 pm
 
Forum: Personal Consumer Issues
Topic: Hertz PlatePass Program--Feel Burned
Replies: 27
Views: 3587

Tax Loss Harvesting VWAHX without triggering wash sale

I have a number of shares of VWAHX (Vanguard High-Yield Tax Exempt Fund) that I purchased earlier this year that I am considering selling and swapping for an equivalent amount of SWNTX (Schwab Tax Free Bond Fund) in order to tax harvest the losses. Would there be any danger of this transaction being...
by fdeanw
Sun Sep 22, 2013 9:02 pm
 
Forum: Investing - Help with Personal Investments
Topic: Tax Loss Harvesting VWAHX without triggering wash sale
Replies: 3
Views: 419

Re: Does TurboTax handle the 6-month loss rule for muni fund

If you purchased the shares in the fund from the same brokerage as you sold it, I believe the 1099-B they provide you at year-end should place the loss in the appropriate category for tax reporting purposes. I think this is a 1099 issue, not a Turbotax issue.
by fdeanw
Mon Jun 24, 2013 9:07 pm
 
Forum: Investing - Help with Personal Investments
Topic: Does TurboTax handle the 6-month loss rule for muni funds?
Replies: 18
Views: 1359

Re: RMD and the tax trap

For retirees in high brackets facing a substantial RMD upon turning 70 1/2, would it generally make sense to take advantage of the rule that allows you to defer the first RMD until April of the year after you turn 70 1/2, and then to convert an equivalent amount from your IRA to a Roth IRA in the ye...
by fdeanw
Mon Jun 10, 2013 6:18 pm
 
Forum: Investing - Theory, News & General
Topic: RMD and the tax trap
Replies: 33
Views: 2336

Re: Whole Life - Mess - Any way out?!?

The principal problem, it seems to me, is that the OP professes not to want or need the thing that he mainly purchased with this policy -- the death benefit that is now at $354,000. But that has to have value to someone else, no? If the OP is not able to pay off the loan or to continue to make the a...
by fdeanw
Sat May 18, 2013 6:32 pm
 
Forum: Personal Finance (Not Investing)
Topic: Whole Life - Mess - Any way out?!?
Replies: 93
Views: 6120

Re: Is Capital Loss on Premium Bonds Reflected in Pricing?

grok87 wrote: For tax-exempt securities, amortization of premium is required and is not deductible from taxable income.


I guess that's the key sentence for my muni bonds example. Thanks.
by fdeanw
Fri May 17, 2013 11:37 pm
 
Forum: Investing - Theory, News & General
Topic: Is Capital Loss on Premium Bonds Reflected in Pricing?
Replies: 17
Views: 962

Re: Is Capital Loss on Premium Bonds Reflected in Pricing?

Waiting until maturity to reduce your taxable income would make the after tax return from the premium bond worse , not better, than for the bond purchased at par. Here is an example assuming a tax rate of 25%: --------- 3% Coupon ----------- ---------- 5% Coupon --------- Year Pretax Taxes Aftertax...
by fdeanw
Fri May 17, 2013 11:09 pm
 
Forum: Investing - Theory, News & General
Topic: Is Capital Loss on Premium Bonds Reflected in Pricing?
Replies: 17
Views: 962

Re: Is Capital Loss on Premium Bonds Reflected in Pricing?

it doesn't really work that way. You are generally not going to be able to take a capital loss because the cost basis of the bond will adjust downward (amortize downward) over time. It's possible if interest rates spike and you sell before maturity that you might be able to take a capital loss. But...
by fdeanw
Fri May 17, 2013 11:06 pm
 
Forum: Investing - Theory, News & General
Topic: Is Capital Loss on Premium Bonds Reflected in Pricing?
Replies: 17
Views: 962

Re: Is Capital Loss on Premium Bonds Reflected in Pricing?

Thanks, Grok. Yes, I was talking about munis, and the reason the question arose is because I was recently looking at an offering that was just the situation you described: a choice between two Cal GO bonds maturing on the same date, one with a 3% coupon and one with a 5% coupon, and both supposedly ...
by fdeanw
Fri May 17, 2013 10:46 pm
 
Forum: Investing - Theory, News & General
Topic: Is Capital Loss on Premium Bonds Reflected in Pricing?
Replies: 17
Views: 962

Is Capital Loss on Premium Bonds Reflected in Pricing?

Apologizing in advance if my question displays too much ignorance, but I was wondering whether purchasing an existing-issue bond at a premium and holding it to maturity will result in a capital loss at the time it matures, and if so, whether this factor is generally priced into the premium of the bo...
by fdeanw
Fri May 17, 2013 7:58 pm
 
Forum: Investing - Theory, News & General
Topic: Is Capital Loss on Premium Bonds Reflected in Pricing?
Replies: 17
Views: 962

Re: Rebalance using charitable contributions?

Is there any wash-sale rule for donating appreciated shares for charitable contributions? That is, can you immediately purchase new shares of the same stock or fund that you donated to the charity, thereby effectively stepping up its basis?
by fdeanw
Wed May 08, 2013 9:14 pm
 
Forum: Investing - Help with Personal Investments
Topic: Rebalance using charitable contributions?
Replies: 31
Views: 994

Re: Kiddie Tax and IRA/Roth Contribution Question

It's the OP back again. Appreciate all the responses. I think Alan S. is on the right track here. I played around with some different numbers in last year's Turbotax return for my son, and it looks like the amount of his earned income plus $300 is deducted from his AGI to result in his taxable incom...
by fdeanw
Wed Mar 20, 2013 10:47 pm
 
Forum: Personal Finance (Not Investing)
Topic: Kiddie Tax and IRA/Roth Contribution Question
Replies: 11
Views: 1450

Kiddie Tax and IRA/Roth Contribution Question

I have a tax inquiry that I hope someone can help me with: We are in the top marginal income tax bracket and my 19-year-old son in college is subject to the kiddie tax. As I understand it, his unearned income (even his capital gains) above the $1,900 threshold will be taxed at our marginal rate, but...
by fdeanw
Wed Mar 20, 2013 1:38 pm
 
Forum: Personal Finance (Not Investing)
Topic: Kiddie Tax and IRA/Roth Contribution Question
Replies: 11
Views: 1450

Re: Help in Assessing Mortgage Refinance Choices

I'm not keen on the HELOC because I feel like we should be paying down some of the principal during the interim, and I like the idea that if things go drastically wrong in our financial planning, we don't necessarily have to pay the mortgage off early. It's not a HELOC, but a loan. However, the fiv...
by fdeanw
Tue Jan 22, 2013 9:23 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help in Assessing Mortgage Refinance Choices
Replies: 8
Views: 542

Re: Help in Assessing Mortgage Refinance Choices

The rate on PenFed's 5/5 ARM is actually less competitive than either the 10-year fixed or the 7-yr. ARM elsewhere. I'm not keen on the HELOC because I feel like we should be paying down some of the principal during the interim, and I like the idea that if things go drastically wrong in our financia...
by fdeanw
Tue Jan 22, 2013 8:38 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help in Assessing Mortgage Refinance Choices
Replies: 8
Views: 542

Help in Assessing Mortgage Refinance Choices

I'm having trouble figuring out how to analyze the implications of the choice between two mortgage refinancing options, and I figured folks here were smart enough and kind enough to help me through the proper analysis. We are currently thinking of refinancing once again. We have about $370,000 left ...
by fdeanw
Tue Jan 22, 2013 7:32 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help in Assessing Mortgage Refinance Choices
Replies: 8
Views: 542

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