What-If Planning Advice

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dumbbunny
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What-If Planning Advice

Post by dumbbunny »

I don't know if the next two lines are important to my question but..
I am retired, living off of savings and will collect SS in March 2016 at age 62.
My wife will retire in February 2015 and will receive SS then.
I am thinking of buying a condo in a sunnier climate to escape our Pacific Northwest winters. I would consider taking out a 30 year mortgage.
But before I do this, I would like to know how this would work out tax-wise, e.g., what kind of refund I would receive due to mortgage interest, property tax, yada-yada. I used Vanguard's free online Turbo Tax last year (Flagship perk) so I can't work out what-ifs unless I use my own 2012 TT software. Any Bogle advice?
Last edited by dumbbunny on Sun Nov 23, 2014 10:54 pm, edited 1 time in total.
“It’s the curse of old men to realize that in the end we control nothing." "Homeland" episode, "Gerontion"
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cheese_breath
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Re: What-If Planning Advice

Post by cheese_breath »

Peterjens wrote:.... I used Vanguard's free online Turbo Tax last year (Flagship perk) so I can't work out what-ifs unless I use my own 2013 TT software....
You used Vanguard's free TT plus you also have your own TT too? If you have your own TT too, then use it. Go through the interview process answering the questions about taxes and interest with best guesses. Unless the tax laws change significantly I would think this should give reasonable what if answers.
The surest way to know the future is when it becomes the past.
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dumbbunny
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Re: What-If Planning Advice

Post by dumbbunny »

D'oh! Nice catch. I will edit 2013 to read 2012. Thanks.
“It’s the curse of old men to realize that in the end we control nothing." "Homeland" episode, "Gerontion"
kazper
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Re: What-If Planning Advice

Post by kazper »

Many software programs will let you run the online version free of charge and provide the estimate. They draw the line at viewing/printing the forms. As strange as it sounds, I usually put my numbers it two different programs free to make sure they match or are close as a double check.
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Phineas J. Whoopee
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Re: What-If Planning Advice

Post by Phineas J. Whoopee »

Is it definitely or probably the case that, after the move is accomplished, you will have enough in Schedule A deductions to exceed the standard deduction each year?

If not, then the answer to your question is it won't make any difference at all. That's a point often glossed over by real estate salespeople and mortgage originators.

Hope that's helpful.

PJW
dbr
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Re: What-If Planning Advice

Post by dbr »

Phineas J. Whoopee wrote:Is it definitely or probably the case that, after the move is accomplished, you will have enough in Schedule A deductions to exceed the standard deduction each year?

If not, then the answer to your question is it won't make any difference at all. That's a point often glossed over by real estate salespeople and mortgage originators.

Hope that's helpful.

PJW
Just as "tax deductible contribution" can drive one crazy. Not that I donate more or less on that account, but it gets tiresome hearing it all the time.
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Phineas J. Whoopee
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Re: What-If Planning Advice

Post by Phineas J. Whoopee »

dbr wrote:...
Just as "tax deductible contribution" can drive one crazy. Not that I donate more or less on that account, but it gets tiresome hearing it all the time.
Is this pledge week for your local PBS station? :happy
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BahamaMan
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Re: What-If Planning Advice

Post by BahamaMan »

Peterjens wrote: I used Vanguard's free online Turbo Tax last year (Flagship perk)
How do I get to the Vanguard's free online Turbo Tax? - I tried to find it to no avail.
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joe8d
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Re: What-If Planning Advice

Post by joe8d »

BahamaMan wrote:
Peterjens wrote: I used Vanguard's free online Turbo Tax last year (Flagship perk)
How do I get to the Vanguard's free online Turbo Tax? - I tried to find it to no avail.
Not available yet for 2014.
All the Best, | Joe
BahamaMan
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Re: What-If Planning Advice

Post by BahamaMan »

joe8d wrote:Not available yet for 2014.
Is the 2013 one there still ?
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