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Re: Education tax credit for Spring 2013 class but paid in 2

Thank for everyone's input. You are all correct and I stand corrected!
by jcw
Wed Mar 12, 2014 3:02 pm
 
Forum: Personal Finance (Not Investing)
Topic: Education tax credit for Spring 2013 class but paid in 2012
Replies: 18
Views: 842

Re: Education tax credit for Spring 2013 class but paid in 2

Just following up on this. It looks like students can write this off if Box 7 is checked. This indicates that a portion of the tuition was used in the Spring Semester. My CPA indicated that is was okay to try for it, although, the IRS could deny it and I could have to pay interest. This turbo tax a...
by jcw
Tue Mar 11, 2014 1:29 pm
 
Forum: Personal Finance (Not Investing)
Topic: Education tax credit for Spring 2013 class but paid in 2012
Replies: 18
Views: 842

Re: Education tax credit for Spring 2013 class but paid in 2

Just following up on this. It looks like students can write this off if Box 7 is checked. This indicates that a portion of the tuition was used in the Spring Semester. My CPA indicated that is was okay to try for it, although, the IRS could deny it and I could have to pay interest. This turbo tax a...
by jcw
Tue Mar 11, 2014 12:54 pm
 
Forum: Personal Finance (Not Investing)
Topic: Education tax credit for Spring 2013 class but paid in 2012
Replies: 18
Views: 842

Re: Education tax credit for Spring 2013 class but paid in 2

jcw, As jebmke says, the educational credit can only be claimed in the tax year the qualified expense was actually paid. Therefore, tax year 2012 in your case. But you might want to take another look at your 2012 tax return and see if you would benefit by filing an amended tax return for that year....
by jcw
Tue Mar 11, 2014 12:28 pm
 
Forum: Personal Finance (Not Investing)
Topic: Education tax credit for Spring 2013 class but paid in 2012
Replies: 18
Views: 842

Re: Outsource programming to bidding sites like Freelancer.c

I have used these sites successfully and currently work at one of the companies in this space. The best way to be successful is to find a developer with great communication skills. Considering you're outsourcing, you are probably not doing a project that is technically super complicated. Thus most h...
by jcw
Wed Feb 26, 2014 5:00 pm
 
Forum: Personal Consumer Issues
Topic: Outsource programming to bidding sites like Freelancer.com?
Replies: 20
Views: 1449

Re: Any other travel freaks?

I love traveling but it can be tiring. I've traveled to over 20 different countries in the past few years. For 2014, El Salvador, Prague, Vienna, Cabo, Kauai, Boston and Salt lake city planned. I figure I need to do this while I'm young and before I have kids. I try to travel as cheaply as possible ...
by jcw
Tue Feb 04, 2014 2:22 pm
 
Forum: Personal Consumer Issues
Topic: Any other travel freaks?
Replies: 92
Views: 5631

Re: Student loans

I have two masters (MS and MBA). I was eligible for subsidized and unsubsidized loans both times. The interest rate was 6.8% and the majority were unsubsidized. You are also eligible for the education tax deduction. One thing I just got bit on, tax deductions are taken in the year that you pay your ...
by jcw
Mon Feb 03, 2014 5:46 pm
 
Forum: Personal Finance (Not Investing)
Topic: Student loans
Replies: 13
Views: 1216

Why is there a phase out for student loan interest?

As I'm in the process of paying off student loans, I've been finding a lot of "gotchas" regarding very screwy policies with student loans. First, student loan interest rates are excessively high (~7%). On top of that, I just learned that there is a phase out for deducing student loan inter...
by jcw
Mon Feb 03, 2014 4:22 am
 
Forum: Personal Finance (Not Investing)
Topic: Why is there a phase out for student loan interest?
Replies: 4
Views: 686

Re: Education tax credit for Spring 2013 class but paid in 2

Did you look at the 1098-T from the college? Although you paid for the Spring semester in the previous year, some universities do not consider it paid until the following year. They then credit that amount to the 1098-T for 2013 in your example. Now this has caused me some problems because I withdr...
by jcw
Sun Jan 26, 2014 6:57 pm
 
Forum: Personal Finance (Not Investing)
Topic: Education tax credit for Spring 2013 class but paid in 2012
Replies: 18
Views: 842

Education tax credit for Spring 2013 class but paid in 2012

Hi, I paid for my last semester of school which started in January 2013 and ended in May 2013. However, I paid tuition towards the end of December 2012. I'm putting together my taxes for 2013 and it's unclear if I can take the education tax credit for my Spring 2013 semester. I was under the impress...
by jcw
Sun Jan 26, 2014 6:39 pm
 
Forum: Personal Finance (Not Investing)
Topic: Education tax credit for Spring 2013 class but paid in 2012
Replies: 18
Views: 842

Re: Are HELOC rate adjustments predictable?

Interesting idea on the auto loan at .99%. Can you explain how that would work? I have never actually got an auto loan because I usually pay all cash for my cars. After graduating, I paid all cash for a used car and do not have a loan on it. Is there a way to get an auto loan for the full value of ...
by jcw
Mon Jan 13, 2014 2:25 am
 
Forum: Personal Finance (Not Investing)
Topic: Are HELOC rate adjustments predictable?
Replies: 9
Views: 733

Re: Are HELOC rate adjustments predictable?

HELOCs are nice because you don't need to draw all of the money at once. You can tap your equity when you need it. As you noted, the major drawback is that their interest rate is variable. So it's best not to have significant money drawn on a HELOC for extended periods of time. Most HELOCs are tied...
by jcw
Sun Jan 12, 2014 2:45 am
 
Forum: Personal Finance (Not Investing)
Topic: Are HELOC rate adjustments predictable?
Replies: 9
Views: 733

Are HELOC rate adjustments predictable?

Hello, I have drawn from my HELOC which I've had since 2009. It was and has stayed at 3% and never moved. I'm estimating that it will take 3 years to pay off the balance. I'm concerned that rates may go up in that time but was hoping to get some guidance on it. Is there any way to tell if rates will...
by jcw
Sat Jan 11, 2014 2:55 pm
 
Forum: Personal Finance (Not Investing)
Topic: Are HELOC rate adjustments predictable?
Replies: 9
Views: 733

Re: Very Aggressive Student Loan Repayment

Is $241k the amount you made after taxes (ie: take home pay)? That would mean you guys had ~$400k in just 5 months. If so, I wish I had gone to med school. That is just amazing.
by jcw
Thu Nov 28, 2013 1:51 am
 
Forum: Personal Finance (Not Investing)
Topic: Very Aggressive Student Loan Repayment
Replies: 28
Views: 2837

Re: Help me understand this employee stock option plan

You should also think about the forward exercise if the strike price and fair market value are very low. Forward exercise allows you to turn the option into a restricted stock unit and you pay taxes on it immediately. This makes sense in very early stage ventures. So if the strike price is $0.01 and...
by jcw
Fri Oct 04, 2013 1:06 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help me understand this employee stock option plan
Replies: 5
Views: 461

Re: Should I get a MBA?

Nice GPA and GMAT scores but sorry to say, you probably won't get into a Top 5 MBA program with that. Past a certain score and admissions doesn't care about it as you have passed the "smart enough" bar. You need to be amazing in other ways and you need to paint a holistic story over the la...
by jcw
Tue Jul 30, 2013 12:39 am
 
Forum: Personal Finance (Not Investing)
Topic: Should I get a MBA?
Replies: 37
Views: 2993

Re: What age did you reach 100K networth?

I made it in cash by around age 26. Then I bought a house and later paid 200k for an MBA. Now I'm $85k in debt but my 401k/IRA still have over $100k in them. Long term buy and hold did work!
by jcw
Sat Jun 15, 2013 4:16 pm
 
Forum: Personal Finance (Not Investing)
Topic: What age did you reach 100K networth?
Replies: 264
Views: 31204

Re: Investment property and cap rate

Thanks for the replies. My personal situation is that I have finished grad school on the east coast and will be taking a job back in the bay area, starting in July. So I will be local again in about a month after some travels through Europe. Sounds like most here would sell if they were me. I'm lean...
by jcw
Tue Jun 11, 2013 10:47 pm
 
Forum: Personal Finance (Not Investing)
Topic: Investment property and cap rate
Replies: 32
Views: 2245

Re: Investment property and cap rate

You ignore that by paying the mortgage your equity increases and leverage goes down. I'm just starting out doing investment properties, but as others mentioned your rental income seems very low. As a comparison, we are in the process of buying an apartment for 140k and should get 1200 per month in ...
by jcw
Mon Jun 10, 2013 9:47 pm
 
Forum: Personal Finance (Not Investing)
Topic: Investment property and cap rate
Replies: 32
Views: 2245

Re: Investment property and cap rate

Yes, this is how I modeled it and was my original question! See the first post. If I model 2% growth and I'm leveraged 5x (your standard 20%) down. Then I'm getting a 10% return just from inflation. Example: The house costs $10000, you put 20% down, so your equity is $20000. Then, you rent for cash ...
by jcw
Mon Jun 10, 2013 8:48 pm
 
Forum: Personal Finance (Not Investing)
Topic: Investment property and cap rate
Replies: 32
Views: 2245

Re: Investment property and cap rate

Deanbrew,

Would you mind sharing the other real estate site you use? I find that this site is great for index investing advice, but the general population here is very against owning real estate so it's hard to get constructive feedback.

Thank you!
by jcw
Mon Jun 10, 2013 5:12 pm
 
Forum: Personal Finance (Not Investing)
Topic: Investment property and cap rate
Replies: 32
Views: 2245

Re: Investment property and cap rate

Deanbrew, Thank you! That was a super helpful and constructive reply. I see now that the cap rate is really low. Also, if I add in potential maintenance costs of 20%, it will be even worse. I will definitely consider selling in the next year. I still have about a year to get the tax free exchange. T...
by jcw
Mon Jun 10, 2013 4:03 pm
 
Forum: Personal Finance (Not Investing)
Topic: Investment property and cap rate
Replies: 32
Views: 2245

Re: Investment property and cap rate

To clarify, I am not an experienced real estate investor and this was not intended to be a rental property. I am an "accidental landlord". This purchase was intended for a family and kids. Based on unfortunate and fortunate circumstances that did not happen and I moved across the country. ...
by jcw
Sun Jun 09, 2013 2:09 pm
 
Forum: Personal Finance (Not Investing)
Topic: Investment property and cap rate
Replies: 32
Views: 2245

Re: Investment property and cap rate

Thanks for the thoughtful replies. I'm currently living rent free for a while and have at least $10k/month gross income and low monthly expenses (~ $1000). I can use this cash to backstop any vacancies, repairs, etc. Other than that, I would use the money to build up a 12 month safety net to cover a...
by jcw
Sat Jun 08, 2013 7:57 pm
 
Forum: Personal Finance (Not Investing)
Topic: Investment property and cap rate
Replies: 32
Views: 2245

Investment property and cap rate

Hello, I have a single family home that I bought in 2009. I moved away for the last couple of years and have been renting it out. My tenant has been great so it's been easy to landlord the property, even from the other side of the country. However, my tenant is about to move out and I'm trying to fi...
by jcw
Sat Jun 08, 2013 12:02 pm
 
Forum: Personal Finance (Not Investing)
Topic: Investment property and cap rate
Replies: 32
Views: 2245

Specific identification of shares for selling mutual funds

Hello,

I am selling mutual funds within my Roth IRA. I bought the fund at different points in time and at different prices. Is it possible to indicate the specific shares I want sold? Is it brokerage dependent? My brokerage (first trade) doesn't seem to give me the option.

thanks
by jcw
Sun May 26, 2013 1:35 pm
 
Forum: Investing - Help with Personal Investments
Topic: Specific identification of shares for selling mutual funds
Replies: 3
Views: 256

Re: Tax loophole with RSUs?

Ah that makes so much more sense! Thanks! The tricky thing is that E-trade lists my cost basis as a blank (but show my taxes paid) so I thought that I had no cost basis. I'm always confused when calculating my espp and rsus every year.
by jcw
Sun Mar 31, 2013 3:29 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tax loophole with RSUs?
Replies: 4
Views: 589

Tax loophole with RSUs?

Need some advice from tax experts. I had $20k in Restricted Stock units in 2011. My company required me to pay stock on vest, so I had to pay $8k (40%) when I got the stock in 2011. The net is that I got $12k in stocks in my account. I sold the stock last year in 2012 at $16k (it increased $4000 sin...
by jcw
Sun Mar 31, 2013 3:01 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tax loophole with RSUs?
Replies: 4
Views: 589

Re: Move into rental property? I need your advice.

Forgot to mention that if you are not planning to stay, you can do penfed 5/5 ARM at around 2.5%, which would lower your rate even more. You would need to exit within 5 years before the rate moves up (potentially).
by jcw
Sun Mar 31, 2013 12:37 pm
 
Forum: Investing - Help with Personal Investments
Topic: Move into rental property? I need your advice.
Replies: 13
Views: 1375

Re: Move into rental property? I need your advice.

The best financial choice is to move back into the house and refinance to the current mortgage rate of ~3.5%. You need to be owner occupied to get the 3.5% rate. The savings from going down to that rate would probably be ~$200. If you stay in the house for 2 years, you can sell it tax free after tha...
by jcw
Sun Mar 31, 2013 12:35 pm
 
Forum: Investing - Help with Personal Investments
Topic: Move into rental property? I need your advice.
Replies: 13
Views: 1375

Re: Shifting to higher stock allocation during crashes

On this forum, the answer to "Should I try this flavor of market timing?" is going to be "No". Did you expect otherwise? I have been lurking here for about 10 years so I suppose I should not be surprised about that. :) Well maybe if I had been more strategic in the way I broache...
by jcw
Mon Jan 21, 2013 3:46 pm
 
Forum: Investing - Theory, News & General
Topic: Shifting to higher stock allocation during crashes
Replies: 42
Views: 2749

Re: Shifting to higher stock allocation during crashes

I made out like a bandit obviously and I'm back at my 80/20 allocation now waiting for the next crash. When will be the next crash? What constitutes a crash? I think of it as a double digit drop over a period of time, usually 1 day, but could be over a month(s). No clue when the next crash will be....
by jcw
Mon Jan 21, 2013 3:18 am
 
Forum: Investing - Theory, News & General
Topic: Shifting to higher stock allocation during crashes
Replies: 42
Views: 2749

Re: Shifting to higher stock allocation during crashes

oh yeh. 122% on your initial $1 but 13% on your total portfolio. Maybe not great, but perhaps not so bad considering it takes a few minutes of work over many years.
by jcw
Sun Jan 20, 2013 1:01 am
 
Forum: Investing - Theory, News & General
Topic: Shifting to higher stock allocation during crashes
Replies: 42
Views: 2749

Re: Shifting to higher stock allocation during crashes

Ok, I have backtested this strategy over the last 30 years from Jan 1983 to Jan 2013. I was able to show a 122% total portfolio improvement using this strategy. Strategy: shift AA from bonds to stocks on down months, and then reset AA back to normal when the market reached new highs. Initial Investm...
by jcw
Sun Jan 20, 2013 12:23 am
 
Forum: Investing - Theory, News & General
Topic: Shifting to higher stock allocation during crashes
Replies: 42
Views: 2749

Re: Shifting to higher stock allocation during crashes

The flaw I see with this ideal is that the markets could move sideways for years. Look at Japan. True but in the 3-fund portfolio, you have total international. So you have exposure to the world. Unless securities around the world stay flat, then it shouldn't be a problem. Since there is a positive...
by jcw
Fri Jan 18, 2013 9:52 pm
 
Forum: Investing - Theory, News & General
Topic: Shifting to higher stock allocation during crashes
Replies: 42
Views: 2749

Re: Shifting to higher stock allocation during crashes

Ok, there is obviously no way to call exact bottom. One strategy could be for every 20% total drop from the market tip, you adjust a total of 25% of your bond allocation into stock. So if you had a 20% bond allocation and the S&P high were 1500, for every 20% drop of 300 points, you would alloc...
by jcw
Fri Jan 18, 2013 9:28 pm
 
Forum: Investing - Theory, News & General
Topic: Shifting to higher stock allocation during crashes
Replies: 42
Views: 2749

Re: Shifting to higher stock allocation during crashes

Ok, there is obviously no way to call exact bottom. One strategy could be for every 20% total drop from the market tip, you adjust a total of 25% of your bond allocation into stock. So if you had a 20% bond allocation and the S&P high were 1500, for every 20% drop of 300 points, you would alloca...
by jcw
Fri Jan 18, 2013 8:10 pm
 
Forum: Investing - Theory, News & General
Topic: Shifting to higher stock allocation during crashes
Replies: 42
Views: 2749

Shifting to higher stock allocation during crashes

Hello, Wondering if anyone has backtested a 3-fund portfolio in which you were to go 100% stock on any crash (> 20%). Seems in the last 15-20 years, the market has been more volatile than ever with two 40% drops in the last 12 years. Obviously, we would get some benefit in the standard buy/hold/reba...
by jcw
Fri Jan 18, 2013 5:09 pm
 
Forum: Investing - Theory, News & General
Topic: Shifting to higher stock allocation during crashes
Replies: 42
Views: 2749

Re: Why is Amazon such an expensive stock?

Valuethinker, Thanks for the clarification on FCF. I always hated doing discounted cash flow analysis and could never remember the details. I could never be a banker or finance guy! Good point on the customer lifetime value. Amazon should know the churn/retentation rate and will be able to calculate...
by jcw
Wed Jan 09, 2013 6:49 pm
 
Forum: Investing - Help with Personal Investments
Topic: Why is Amazon such an expensive stock?
Replies: 16
Views: 1479

Re: Why is Amazon such an expensive stock?

The article is confusing but my interpretation is that Amazon is trying to maximize operational cash flows. That is the money you generate from operations minus working capital needs (inventory, accounts payable), employee, marketing, and other operational expenses. If you have a ton of operational ...
by jcw
Tue Jan 08, 2013 7:15 pm
 
Forum: Investing - Help with Personal Investments
Topic: Why is Amazon such an expensive stock?
Replies: 16
Views: 1479

Re: Value averaging and MYR -A safer approach to margin?

Also, please give me what you think a "worst" case scenario would be. I am definitely a young investor and I could benefit a lot from the wisdom of this forum. I am humble enough to acknowledge that there is a ton I don't know. After having seen what happened to "market timer" (a...
by jcw
Fri Dec 28, 2012 1:11 am
 
Forum: Investing - Theory, News & General
Topic: Value averaging and MYR -A safer approach to margin?
Replies: 39
Views: 3501

Re: Value averaging and MYR -A safer approach to margin?

My exit strategy would be to fold it into my overall portfolio. BND is just the total bond market and I already hold vanguard total bond in my 401k, so I'd be over weight bonds for a while. I invest about $50k per year across retirement accounts and outside. 20% bonds would give me about $10k. So th...
by jcw
Fri Dec 28, 2012 1:04 am
 
Forum: Investing - Theory, News & General
Topic: Value averaging and MYR -A safer approach to margin?
Replies: 39
Views: 3501

Re: Becoming a Landlord Experiences

I rent out a SFH house in a high end area of the San Francisco/Bay Area. I've been renting for about 1.5 years and in that time, the plumbing has clogged 3 times and the refrigerator has broken, leaving all the food rotted. I had to pay for all the fees and replaced my tenant's food due to the broke...
by jcw
Fri Dec 28, 2012 12:43 am
 
Forum: Personal Finance (Not Investing)
Topic: Becoming a Landlord Experiences
Replies: 77
Views: 8083

Re: Value averaging and MYR -A safer approach to margin?

I do use a core boggle head portfolio (s&p index, total international and total bond). In 2008, I started shifting all my bonds to stocks until I had almost no bonds. I am back at 80% stock to 20% bond now. I have a higher risk tolerance because I don't plan to use that money for 35 years and I ...
by jcw
Thu Dec 27, 2012 2:38 am
 
Forum: Investing - Theory, News & General
Topic: Value averaging and MYR -A safer approach to margin?
Replies: 39
Views: 3501

Re: Where to buy a house/condo in SF? Suggestions?

I grew up in the bay area and lived in a fancy house this summer in Hayes valley while interning at a local tech company. Here are my suggestions: South of Market Area (SOMA) - access to everything from restaurants, ball park, embarcadero. Quickly exit the city to the Eastbay (via 80 bay bridge) or ...
by jcw
Wed Dec 26, 2012 8:46 pm
 
Forum: Personal Finance (Not Investing)
Topic: Where to buy a house/condo in SF? Suggestions?
Replies: 9
Views: 1305

Re: Value averaging and MYR -A safer approach to margin?

Hello, I am the original poster and have not been in here in a long time as I quit work, traveled around the world, and now attend a top 3 business school in the US. A little update. I did use the margin account for about $20-30k in margin ($50-60k total invested) at about 1.66% interest (< 1% after...
by jcw
Sat Dec 22, 2012 9:50 pm
 
Forum: Investing - Theory, News & General
Topic: Value averaging and MYR -A safer approach to margin?
Replies: 39
Views: 3501

Abbas: I have mainly invested in Vanguard retirement 2045 since around 2004. I haven't really kept track of year over year returns but I think I have around 23000 contributed and the fair market value is currently 27,889 all in VTIVX (target retirement 2045). I don't plan to borrow from my 401k. Tha...
by jcw
Sun May 16, 2010 12:51 am
 
Forum: Investing - Theory, News & General
Topic: Value averaging and MYR -A safer approach to margin?
Replies: 39
Views: 3501

Livesoft - I just started an IB account. So 1.66% interest which is tax deductible, so effectively ~.9%. dodonnell - I have around 80k in Roth and 401k + 25 in high yield accounts (emergency). I'll continue maxing out the 401k but I'm no longer eligible to contribute to Roth. I would use the Roth an...
by jcw
Sat May 15, 2010 10:13 pm
 
Forum: Investing - Theory, News & General
Topic: Value averaging and MYR -A safer approach to margin?
Replies: 39
Views: 3501

Value averaging and MYR -A safer approach to margin?

Hello, I have been investing for 8 years and am about to start a taxable account since I have maxed out my 401k and IRAs and have enough disposable income to do so. I am thinking about using a margin account (leverage) and applying a value averaging concept. My plan is to always have a constant perc...
by jcw
Sat May 15, 2010 9:24 pm
 
Forum: Investing - Theory, News & General
Topic: Value averaging and MYR -A safer approach to margin?
Replies: 39
Views: 3501

Frequent rebalancing in volatile market?

Hi,

I usually re-balance once per year to my AA. However, the market seems to go up 5% one week, then drop 5% another. Would more frequent rebalancing be beneficial? This is assuming there is no cost to buy/sell funds in my 401k.

thanks
by jcw
Thu Jan 08, 2009 4:18 am
 
Forum: Personal Finance (Not Investing)
Topic: Frequent rebalancing in volatile market?
Replies: 6
Views: 1306
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