Search found 124 matches

by BusterMcTaco
Tue May 29, 2018 8:26 pm
Forum: Personal Finance (Not Investing)
Topic: How long does it take for SS to fix earnings record?
Replies: 14
Views: 1531

Re: How long does it take for SS to fix earnings record?

This is fun. SSA says the numbers are reported electronically by the IRS and to call the IRS. The guy I spoke with at the IRS insists the IRS doesn't share information with the SSA (really...)

It may be time to give up an let the system win.
by BusterMcTaco
Tue May 29, 2018 7:22 pm
Forum: Personal Finance (Not Investing)
Topic: How long does it take for SS to fix earnings record?
Replies: 14
Views: 1531

Re: How long does it take for SS to fix earnings record?

I'm sitting on hold on the phone waiting to talk to someone after they changed my self-employment earnings for 2015 after I filed an amendment (no idea why, my earnings went up in the amendment, and I was already capped for SS). I plugged it into a calculator and it seems to be a whopping $30/year i...
by BusterMcTaco
Mon May 28, 2018 1:50 am
Forum: Personal Finance (Not Investing)
Topic: Please help. Private school contract woes.
Replies: 21
Views: 3266

Re: Please help. Private school contract woes.

Have a contract lawyer review it. No one here can advise you on the terms of your contract. I too would assume that a deposit implies the ability to bail out, but if the contract is explicit you may be out of luck.
by BusterMcTaco
Tue May 22, 2018 1:36 am
Forum: Personal Finance (Not Investing)
Topic: private company option exercise - tax question
Replies: 11
Views: 628

Re: private company option exercise - tax question

It's no different than:

1. Buy a stock for $10k.
2. Sell at $40k. Pay $15k taxes.
3. Rebuy at $40k.
4. Lose everything.

You only ever paid $25k but get a $40k loss.
by BusterMcTaco
Thu May 17, 2018 12:29 am
Forum: Investing - Help with Personal Investments
Topic: Ally No Penalty CD @1.75% vs VMMXX @ 1.87%
Replies: 26
Views: 3404

Re: Ally No Penalty CD @1.75% vs VMMXX @ 1.87%

I'm pretty sure the SEC yield factors in the expense ratio, but yeah, this is a pretty small delta. The real question is whether VMMXX and the no-penalty CD rates will go down or up over time. If you know that for sure, you should quit your day job and start your own fund.
by BusterMcTaco
Thu May 17, 2018 12:10 am
Forum: Investing - Help with Personal Investments
Topic: Urgent: escrow situation in bay area
Replies: 50
Views: 2956

Re: Urgent: escrow situation in bay area

Your expenses are remarkably low. By comparison, we made $450k last year, have a $1M mortgage at 3.05%, and about 100k-110k/year in non housing expenses. I sleep fine, even though my wife was just laid off. I should add that as a sole proprietor with hundreds of contracts my own income is relatively...
by BusterMcTaco
Wed May 16, 2018 11:07 pm
Forum: Investing - Help with Personal Investments
Topic: Urgent: escrow situation in bay area
Replies: 50
Views: 2956

Re: Urgent: escrow situation in bay area

Also, what are your annual expenses other than housing? That makes a huge difference.
by BusterMcTaco
Wed May 16, 2018 11:05 pm
Forum: Investing - Help with Personal Investments
Topic: Urgent: escrow situation in bay area
Replies: 50
Views: 2956

Re: Urgent: escrow situation in bay area

Take a deep breath. What are the reasons you want the home? $6000/year includes insurance. Do you pay renters insurance? It includes money going into equity. There is a interest deduction for $750k principle, although without significant other deductions that's admittedly less beneficial today than ...
by BusterMcTaco
Wed May 16, 2018 3:40 pm
Forum: Investing - Theory, News & General
Topic: 2018 401k limit is $55K - do you max it out? Why/why not?
Replies: 110
Views: 10572

Re: 2018 401k limit is $55K - do you max it out? Why/why not?

Since the employer portion is limited to 25% of compensation, it forces me to take a higher salary than I otherwise would, so there are some additional payroll taxes. Overall though it really brings down my tax bill and puts me in a good position for retirement. I suppose the math on this depends o...
by BusterMcTaco
Wed May 09, 2018 1:39 am
Forum: Investing - Help with Personal Investments
Topic: Why Shouldn't I Buy McDonalds Or Coke?
Replies: 66
Views: 8436

Re: Why Shouldn't I Buy McDonalds Or Coke?

I've always assumed that buying McDonald's was just an unfortunate consequence of having bought too much coke earlier in the evening.
by BusterMcTaco
Wed May 09, 2018 1:31 am
Forum: Personal Finance (Not Investing)
Topic: How to handle problem employee
Replies: 84
Views: 5751

Re: How to handle problem employee

fujiters wrote:
Wed May 09, 2018 1:19 am
In this discussion, I feel like you're coming across as a problem manager.
I strongly agree.
by BusterMcTaco
Wed May 09, 2018 1:15 am
Forum: Personal Finance (Not Investing)
Topic: How to handle problem employee
Replies: 84
Views: 5751

Re: How to handle problem employee

If you need a robot, program one. If you need an employee, treat them like a person. The way you've described your process makes me wonder why it isn't all automated (get a form in your email so do something... What?!). But it sounds like suggesting that in your organisation might label me a trouble...
by BusterMcTaco
Sat May 05, 2018 1:11 am
Forum: Personal Finance (Not Investing)
Topic: Odd CA tax return
Replies: 8
Views: 784

Re: Odd CA tax return

Just call the FTB. They are surprising civil and easy to deal with.
by BusterMcTaco
Sat Apr 21, 2018 12:49 pm
Forum: Investing - Help with Personal Investments
Topic: Ally Bank No penalty CD for parking cash, is there a catch?
Replies: 103
Views: 19122

Re: Ally Bank No penalty CD for parking cash, is there a catch?

No. The SEC yield 1.44%, not 2.20%. Vanguard and Morningstar both say 2.20%. Am I looking at the wrong thing? Are you perhaps looking at the VCTXX municipal money market fund? I'm looking at VCAIX, the intermediate CA tax-exempt bond fund. Also, with the correct numerator of 1.44%, this formula wou...
by BusterMcTaco
Fri Apr 20, 2018 8:53 pm
Forum: Investing - Help with Personal Investments
Topic: Ally Bank No penalty CD for parking cash, is there a catch?
Replies: 103
Views: 19122

Re: Ally Bank No penalty CD for parking cash, is there a catch?

Check me on this, please. I'm in the 24% federal bracket, 9.3% California bracket, and subject to the 3.8% Medicare (NIIT) tax. So my TEY for VCAIX (CA intermediate tax-exempt bond fund) based on today's 2.20% SEC yield is:

Code: Select all

2.2% / (1-.24-.093-.038) = 3.5%
Is that right?
by BusterMcTaco
Fri Apr 20, 2018 8:48 pm
Forum: Investing - Help with Personal Investments
Topic: Ally Bank No penalty CD for parking cash, is there a catch?
Replies: 103
Views: 19122

Re: Ally Bank No penalty CD for parking cash, is there a catch?

I expect to be in 12% bracket with ordinary income, but qualified dividends will span the 0% and 15% QD/LTCG brackets. Visualize QD/LTCG stacked on top of ordinary income--if ordinary income is in 12% bracket, but QD/LTCG stacked on top pushes it from 0% to 15%, then marginal tax rate is 27% = 12% ...
by BusterMcTaco
Fri Apr 20, 2018 9:20 am
Forum: Investing - Help with Personal Investments
Topic: Ally Bank No penalty CD for parking cash, is there a catch?
Replies: 103
Views: 19122

Re: Ally Bank No penalty CD for parking cash, is there a catch?

Kevin, how do you have a federal rate of 27%? The brackets go from 24% to 32%...
by BusterMcTaco
Fri Apr 20, 2018 12:34 am
Forum: Investing - Help with Personal Investments
Topic: Solo 401K Excess Employer Profit Sharing Contribution--Ugh
Replies: 19
Views: 1214

Re: Solo 401K Excess Employer Profit Sharing Contribution--Ugh

If you change your reporting to an accrual basis instead of cash basis you may be able to count more income in 2017. There are probably lots of details to consider if you do, and it may be too late, but it's one other option to consider. Did you file an extension on taxes?
by BusterMcTaco
Wed Apr 11, 2018 3:20 pm
Forum: Personal Finance (Not Investing)
Topic: Live Oak Bank - anyone have experience?
Replies: 10
Views: 1387

Re: Live Oak Bank - anyone have experience?

FWIW, despite Quicken having an entry for "Live Oak Bank Direct Connect", it does not work. So no Quicken one-step update for now.
by BusterMcTaco
Mon Apr 09, 2018 8:54 am
Forum: Investing - Theory, News & General
Topic: Post your TLH success / failures
Replies: 6
Views: 662

Re: Post your TLH success / failures

But you also benefitted from compound interest on the $750 saved every year along the way due to your deduction, and any further gains you didn't have to pay taxes on along the way. I don't think TLH is ever meant to be a ridiculous win... It ultimately is just tax deferral, unless the market doesn'...
by BusterMcTaco
Mon Apr 09, 2018 1:57 am
Forum: Investing - Help with Personal Investments
Topic: Solo-401k options if no after-tax contributions in Wife's 401k?
Replies: 24
Views: 2255

Re: Solo-401k options if no after-tax contributions in Wife's 401k?

With the rollover IRA I couldn't do a backdoor Roth because of the pro-rata rule.
by BusterMcTaco
Sun Apr 08, 2018 2:23 pm
Forum: Personal Finance (Not Investing)
Topic: Selling business (website) considerations
Replies: 27
Views: 2355

Re: Selling business (website) considerations

I'm thinking that unless you do some restructuring it would be regular income in that case, but I'm far from certain about that.
by BusterMcTaco
Sat Apr 07, 2018 11:35 am
Forum: Personal Finance (Not Investing)
Topic: Passthrough deduction affected by solo 401k?
Replies: 40
Views: 2871

Re: Passthrough deduction affected by solo 401k?

Does this E*Trade plan allow you to make after-tax contributions ? - It doesn't seem to allow that, as I look on page 13 of this document it doesn't mention making anything other than employer profit-sharing and employee elective deferrals. If it did allow it I would expect to see some kind of term...
by BusterMcTaco
Thu Apr 05, 2018 11:42 pm
Forum: Personal Finance (Not Investing)
Topic: Passthrough deduction affected by solo 401k?
Replies: 40
Views: 2871

Re: Passthrough deduction affected by solo 401k?

Well, I'm likely going to try this year... so I'll report back. Does my plan sound... sound? I'll do an IRR (which I think I have to do by December 31) to bring my taxable income to around $320,000 to be on the safe side (factoring in the anticipated deduction for 2018 employer contributions), then ...
by BusterMcTaco
Thu Apr 05, 2018 7:38 pm
Forum: Personal Finance (Not Investing)
Topic: Passthrough deduction affected by solo 401k?
Replies: 40
Views: 2871

Re: Passthrough deduction affected by solo 401k?

When I filled out my application about 6 months ago it was an explicit option. It's page 19 of the application.

Of course, I haven't tried actually doing it, but I'd be pretty miffed if it wasn't allowed given it's in the plan document and was an explicit option.
by BusterMcTaco
Thu Apr 05, 2018 1:55 pm
Forum: Personal Finance (Not Investing)
Topic: Passthrough deduction affected by solo 401k?
Replies: 40
Views: 2871

Re: Passthrough deduction affected by solo 401k?

I would even suggest that it might make sense to adopt a prototype SEP IRA at Schwab that can coexist with a one-participant 401k. Then you can make the employer contribution to the SEP and rollover the contribution to a Roth IRA. Effectively making Roth employer contributions which you are not all...
by BusterMcTaco
Thu Apr 05, 2018 11:42 am
Forum: Personal Consumer Issues
Topic: VHCOL Home Buying Advice (Bay Area, where else?)
Replies: 65
Views: 5298

Re: VHCOL Home Buying Advice (Bay Area, where else?)

I will just emphasize one option that's been only skirted: Keep renting for a few more years. I wish I'd done this and bought a bigger house from the get-go. Your income, if it holds, will let you build up assets very quickly, which will translate into a safer purchase of a bigger house. You'll also...
by BusterMcTaco
Wed Apr 04, 2018 5:06 pm
Forum: Personal Consumer Issues
Topic: VHCOL Home Buying Advice (Bay Area, where else?)
Replies: 65
Views: 5298

Re: VHCOL Home Buying Advice (Bay Area, where else?)

We bought 2.5 years ago in SF, and here's my summary: *We are happy we live where we do. We were unhappy in our rental. I would prefer to trade up now that income has risen, but transactions costs definitely make this prohibitive. My best bet right now is to wait for a housing bust and buy a new hou...
by BusterMcTaco
Wed Apr 04, 2018 1:51 am
Forum: Personal Finance (Not Investing)
Topic: Passthrough deduction affected by solo 401k?
Replies: 40
Views: 2871

Re: Passthrough deduction affected by solo 401k?

I think the law is pretty clear that sole proprietors are eligible under the $157,500 taxable income phase-out threshold ($315,000 MFJ). Regarding the calculation of individual 401(k) versus 199A deduction, I've been playing with this in my head a lot (and will probably delay making my deferred empl...
by BusterMcTaco
Wed Apr 04, 2018 12:48 am
Forum: Personal Finance (Not Investing)
Topic: Quicken 2018 for Mac [and PC Released]
Replies: 47
Views: 7271

Re: Quicken 2018 for Mac [and PC Released]

Well today they apparently had server issues. I thought it was the update I applied yesterday, but just bad timing...

I've still noticed a general problem with it getting slower and slower if I leave it open, eventually having to be force killed. Smells like a memory leak to me...
by BusterMcTaco
Tue Apr 03, 2018 4:49 pm
Forum: Personal Finance (Not Investing)
Topic: Quicken 2018 for Mac [and PC Released]
Replies: 47
Views: 7271

Re: Quicken 2018 for Mac [and PC Released]

Anybody else having nothing but trouble with the new Quicken? The latest update seems to be completely FUBAR. I'm in a bind because I like the one-step update but I'm now paying more for crappier software and feel like I'm getting ripped off.
by BusterMcTaco
Sun Apr 01, 2018 2:45 pm
Forum: Personal Finance (Not Investing)
Topic: Live Oak Bank - anyone have experience?
Replies: 10
Views: 1387

Re: Live Oak Bank - anyone have experience?

Given they still have a nice rate on savings (1.7% versus Ally's 1.45%), and a 2.55% 2 year CD (versus Ally's 1.75% 11 mo no risk CD), I am thinking of liquidating my no-risk CD, and moving everything (or at least, my CD) to Live Oak... The CD minimum is $2500, much less than Ally's $25,000, so I ca...
by BusterMcTaco
Sat Mar 31, 2018 3:54 pm
Forum: Investing - Theory, News & General
Topic: 18 mo. CD 2.53%
Replies: 4
Views: 1468

Re: 18 mo. CD 2.53%

Looks like 360 day penalty to me, FWIW.

Also, it's callable.
by BusterMcTaco
Tue Mar 27, 2018 10:59 pm
Forum: Personal Finance (Not Investing)
Topic: Do equal solo 401(k) [for QJV] employer contributions have to be made at the same time?
Replies: 2
Views: 194

Re: Do equal solo 401(k) [for QJV] employer contributions have to be made at the same time?

Spirit Rider, I always appreciate your responses. Thanks as usual. I don't understand why you think you can't do that here? You could do 15% on 4/1 ($15,000 you and $15,375 her) and 5% on 10/1 ($5,000 you and $5,125 her). That would be correct with the strictest interpretation of the rules. My reaso...
by BusterMcTaco
Tue Mar 27, 2018 9:49 pm
Forum: Personal Finance (Not Investing)
Topic: Do equal solo 401(k) [for QJV] employer contributions have to be made at the same time?
Replies: 2
Views: 194

Do equal solo 401(k) [for QJV] employer contributions have to be made at the same time?

My wife and I have a QJV with a 401(k). Due to differing self-employment deductions (she had W-2 income), our exact contributions won't be the same even if our percentages are. I'm going to file an extension so that I can get my taxes reviewed by a CPA, but would like to invest much of the employer ...
by BusterMcTaco
Wed Mar 21, 2018 12:13 am
Forum: Personal Finance (Not Investing)
Topic: Odd, AMT higher with less income
Replies: 4
Views: 598

Re: Odd, AMT higher with less income

I think you understand the situation correctly. If your federal tax bracket is higher than your AMT tax bracket (which was 26%, 28%, or effectively 35%, depending on circumstances) then the loss of income would have dropped your non-AMT tax liability faster than your AMT tax liability, resulting in ...
by BusterMcTaco
Mon Mar 19, 2018 4:57 pm
Forum: Personal Finance (Not Investing)
Topic: Does it make sense to convert s-corp to llc?
Replies: 9
Views: 942

Re: Does it make sense to convert s-corp to llc?

I agree with Spirit Rider. I think you are saving 2.9% on $180k, which is between $5-$6k. Under the new section 199A deduction, only the $180k would be subject to the 20% deduction, but as an LLC, the whole amount would be (subject to the taxable income phase-out starting at $315k MFJ). It's unclear...
by BusterMcTaco
Sun Mar 18, 2018 9:45 am
Forum: Personal Finance (Not Investing)
Topic: Does it make sense to convert s-corp to llc?
Replies: 9
Views: 942

Re: Does it make sense to convert s-corp to llc?

Some details are needed to provide meaningful advice. What was your business revenue last year? What reasonable salary do you need to pay yourself? Do you have income from other sources, specifically W2 income? What state are you in?
by BusterMcTaco
Wed Mar 07, 2018 9:38 pm
Forum: Personal Finance (Not Investing)
Topic: Dollar Savings Direct - 1.25% Savings
Replies: 20
Views: 4280

Re: Dollar Savings Direct - 1.25% Savings

They haven't followed yet. I'm tempted... although I think I'm getting 1.75 on my Ally no-penalty CD? I can't remember what that special rate was late last year. So not worth breaking.
by BusterMcTaco
Mon Feb 26, 2018 1:42 am
Forum: Personal Finance (Not Investing)
Topic: Tax reform SALT affecting in Bay Area?
Replies: 67
Views: 9526

Re: Tax reform SALT affecting in Bay Area?

People with large SALT were typically hit by AMT, so the impact of the SALT deduction changes isn't really as significant and widespread as one would think. I've thought about this, but this isn't necessarily true. Just because one "hits AMT" doesn't mean that the loss of the SALT deduction wouldn'...
by BusterMcTaco
Thu Feb 01, 2018 6:29 pm
Forum: Personal Finance (Not Investing)
Topic: 1040X with CA 540X and ammended CA 568
Replies: 0
Views: 133

1040X with CA 540X and ammended CA 568

Background When looking at one of my 1099-Ks this year I had an "oh crap" moment when I saw that they reported withheld taxes in box 4. I went back and, sure enough, this vendor had been withholding federal taxes since late 2015 when I messed up their online W-9 (my fault, but the form was confusin...
by BusterMcTaco
Thu Feb 01, 2018 3:04 pm
Forum: Personal Finance (Not Investing)
Topic: Guideline 401k
Replies: 18
Views: 2160

Re: Guideline 401k

My wife's company is switching next month (from Ubiquity--so at least it can't be worse?) I'll try to remember to report back. I did notice that they apparently don't offer the target date funds out of principle (unnecessary base points), but am not sure what their platform does to make up for it. T...
by BusterMcTaco
Thu Dec 28, 2017 3:14 am
Forum: Investing - Help with Personal Investments
Topic: Can I afford a $600-650k house?
Replies: 60
Views: 7561

Re: Can I afford a $600-650k house?

When we bought we had 3 incomes and budgeted losing one. Five months later we lost one.

You leave no room for error, and the cost could be financial ruin.

If it helps, think of this as putting another $650k on your credit card.
by BusterMcTaco
Mon Dec 25, 2017 4:32 pm
Forum: Personal Finance (Not Investing)
Topic: Please Post Tax Bill Questions Here [was Tax Bill Omnibus Thread]
Replies: 886
Views: 57854

Re: Please Post Tax Bill Questions Here [was Tax Bill Omnibus Thread]

ram wrote:
Mon Dec 25, 2017 12:17 pm
When does the AMT rate go from 26 to 28% for MFJ.
In 2016 it was at $185,400. I'm not sure the 2017 and 2018 values (you can probably Google it). I don't think anything was changed under the new law regarding the bracket.
by BusterMcTaco
Sun Dec 24, 2017 8:32 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement accounts and physician SCorps and Tax Reform
Replies: 48
Views: 3777

Re: Retirement accounts and physician SCorps

The law uses the term "taxable income" which is your AGI minus deductions (excluding the new 199A deduction itself). So I understand it to mean that the phase out is reduced by the contributions. But that also reduces potentially the 199A deduction itself which is limited to 20% of taxable income. I...
by BusterMcTaco
Sun Dec 24, 2017 1:52 am
Forum: Personal Finance (Not Investing)
Topic: Please Post Tax Bill Questions Here [was Tax Bill Omnibus Thread]
Replies: 886
Views: 57854

Re: Please Post Tax Bill Questions Here [was Tax Bill Omnibus Thread]

logiclife wrote:
Sat Dec 23, 2017 8:38 pm
Any link to AMT calculator please?
BusterMcTaco wrote:
Fri Dec 22, 2017 6:33 pm
I put together this graph of the MFJ tax brackets (green) versus AMT (blue, and the red segment is the exemption phase-out range) with a variable for your deduction (d). I hope I got the math right!

https://www.desmos.com/calculator/csqqhwbjsf
by BusterMcTaco
Sat Dec 23, 2017 7:03 pm
Forum: Personal Finance (Not Investing)
Topic: [Pass-Thru Entities Questions Thread]
Replies: 141
Views: 11040

Re: [Pass-Thru Entities Questions Thread]

Does the 50% of wages metric paid by an S Corp include all employees of the S Corp? So in my case, I own 100% of my S-Corp but I have other employees, if I total all W-2 employee wages in my S Corp it is about $600,000. So in comparing this to the 20% of QBI, I can use all employee wages? Allan Cor...
by BusterMcTaco
Sat Dec 23, 2017 3:00 pm
Forum: Personal Finance (Not Investing)
Topic: [Pass-Thru Entities Questions Thread]
Replies: 141
Views: 11040

Re: [Pass-Thru Entities Questions Thread]

Do these calculations look right? I think so, as long as there isn't another qualified business that made money, in which case you would reduce your deduction for that business by 20% of the losses in scenario #1. See example 2 in the proposal document (page 37, PDF page 560), although it seems to ...
by BusterMcTaco
Sat Dec 23, 2017 2:28 am
Forum: Personal Finance (Not Investing)
Topic: [Pass-Thru Entities Questions Thread]
Replies: 141
Views: 11040

Re: Pass Through Entities Questions Thread

I feel dense asking but: if I don't itemize then there's no benefit to that 20k being through an LLC vs wage income. Correct? Actually, there is. The Section 199A deduction (the pass-through deduction) is explicitly allowed in addition to the standard deduction. I strongly suggest you read the bill...
by BusterMcTaco
Fri Dec 22, 2017 10:11 pm
Forum: Personal Finance (Not Investing)
Topic: [Pass-Thru Entities Questions Thread]
Replies: 141
Views: 11040

Re: Pass Through Entities Questions Thread

I've read that QBI is reduced by SE retirement plan and health insurance deductions to get around this double dip scenario. An example is listed here: https://www.watsoncpagroup.com/SubS.pdf "Wilma makes $100,000 in net business income but also deducts $5,000 for self-employed health insurance and ...