Search found 82 matches

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: 6822

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: 878
Views: 48628

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: 3413

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: 878
Views: 48628

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: 130
Views: 8524

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: 130
Views: 8524

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: 130
Views: 8524

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: 130
Views: 8524

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 ...
by BusterMcTaco
Fri Dec 22, 2017 10:03 pm
Forum: Personal Finance (Not Investing)
Topic: Please Post Tax Bill Questions Here [was Tax Bill Omnibus Thread]
Replies: 878
Views: 48628

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

I am a single-owner of a dental practice operating as an S-corp. Does it make sense to return dividends paid out to me this month and instead use those funds to pre-pay 2018 expenses in order to take into account the new tax law changes? I am not an accountant, nor am I trying to play one on the in...
by BusterMcTaco
Fri Dec 22, 2017 7:09 pm
Forum: Personal Finance (Not Investing)
Topic: [Pass-Thru Entities Questions Thread]
Replies: 130
Views: 8524

Re: Question about pass through income in new tax law

Just to be clear, the 50% of wages limit includes wages I pay my employees right? I have a 50% partner, so we'd each get the 20% on our distributions up to 25% of the total wages of the company, if I understand correctly. Does that sound right? I believe so, if you're each above $415,000 in taxable...
by BusterMcTaco
Fri Dec 22, 2017 7:08 pm
Forum: Personal Finance (Not Investing)
Topic: [Pass-Thru Entities Questions Thread]
Replies: 130
Views: 8524

Re: Question about pass through income in new tax law

My understanding is that it phases out completely over $415k. Similar to the personal exemption phase out currently. In other words you don't get any part of it if you're over $415k. Edit: to add that is for specified service businesses. If you aren't a specified service business then it phases out...
by BusterMcTaco
Fri Dec 22, 2017 6:59 pm
Forum: Personal Finance (Not Investing)
Topic: [Pass-Thru Entities Questions Thread]
Replies: 130
Views: 8524

Re: Question about pass through income in new tax law

(assuming the W-2 wages to self reduce the QBI, which I'm not 100% sure it does, but I think it does). Found it. It does, per the explanation on page 30 of the "Joint Explanatory Statement of the Committee of Conference" Qualified business income does not include any amount paid by an S corporation...
by BusterMcTaco
Fri Dec 22, 2017 6:40 pm
Forum: Personal Finance (Not Investing)
Topic: [Pass-Thru Entities Questions Thread]
Replies: 130
Views: 8524

Re: Question about pass through income in new tax law

If you're over the phase-out does that mean you can't claim the 20% deduction at all or is it only applicable to the income under the phase-out? Is the 315k based only on the business income or all income of the couple (including W2)? You lose it in the phase-out. So once you hit $415k (MFJ), you h...
by BusterMcTaco
Fri Dec 22, 2017 6:33 pm
Forum: Personal Finance (Not Investing)
Topic: Please Post Tax Bill Questions Here [was Tax Bill Omnibus Thread]
Replies: 878
Views: 48628

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

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 Looks like a standard deduction taker will never hit AMT...
by BusterMcTaco
Fri Dec 22, 2017 6:12 pm
Forum: Personal Finance (Not Investing)
Topic: [Pass-Thru Entities Questions Thread]
Replies: 130
Views: 8524

Re: Question about pass through income in new tax law

To take it you must have "Qualified Business Income" which is defined as "for any taxable year, the net amount of qualified items of income, gain, deduction, and loss with respect to any qualified trade or business of the taxpayer." See page 30 of the proposal, SEC. 199A(c)(1) You do not need an S c...
by BusterMcTaco
Thu Dec 21, 2017 7:56 pm
Forum: Personal Finance (Not Investing)
Topic: Set Up Dependent Care FSA for Sole Proprietor LLC: Is it Even Possible?
Replies: 2
Views: 236

Re: Set Up Dependent Care FSA for Sole Proprietor LLC: Is it Even Possible?

I see you didn't get any responses, but did you ever learn anything more about this?
by BusterMcTaco
Sat Dec 02, 2017 3:21 am
Forum: Investing - Help with Personal Investments
Topic: At what spread would you invest in a short term CD vs a High Yield Savings Account?
Replies: 15
Views: 1491

Re: At what spread would you invest in a short term CD vs a High Yield Savings Account?

For me, 1%. Less than that isn't worth the headache. I chose not to even bother with Ally's no risk CD over their straight savings account.
by BusterMcTaco
Wed Nov 29, 2017 3:07 am
Forum: Personal Finance (Not Investing)
Topic: A good friend has nearly $1M in BitCoin what do I tell him?
Replies: 149
Views: 16683

Re: A good friend has nearly $1M in BitCoin what do I tell him?

It sounds like you made your opinion known already. It's his money, and he's presumably a competent adult. I personally would never broach the subject again.
by BusterMcTaco
Fri Nov 24, 2017 3:58 am
Forum: Personal Consumer Issues
Topic: How difficult and expensive to add a new bathroom?
Replies: 34
Views: 2231

Re: How difficult and expensive to add a new bathroom?

I just did two bathroom renovation (not additions) to a $1.4M condo in a VHCOL. Bathroom one was gutted and redone. With designer was $45k. Second bathroom replaced a shower with tub. Then the rest was superficial, including new tile. Same contractor, no designer, way cheaper stuff (IKEA this time):...
by BusterMcTaco
Thu Nov 23, 2017 1:08 pm
Forum: Personal Finance (Not Investing)
Topic: Does anyone file form 5329 just to establish statute of limitations?
Replies: 8
Views: 1508

Re: Does anyone file form 5329 just to establish statute of limitations?

Thank you for your responses, Penguin and jhfenton. Penguin especially, I hadn't found that info from Natalie Choate but that's exactly what I have in mind. Kind of, "oh, if that's going to potentially bite me later, I'll just file it now." mouses, I agree about not doing crooked stuff, but then we ...
by BusterMcTaco
Thu Nov 23, 2017 3:57 am
Forum: Personal Finance (Not Investing)
Topic: Does anyone file form 5329 just to establish statute of limitations?
Replies: 8
Views: 1508

Does anyone file form 5329 just to establish statute of limitations?

The court disagreed, holding that Form 5329 is a separate tax return because it provides the IRS with information necessary to properly compute the section 4973 excise tax liability. Under section 6501, if a tax return is not filed, the tax can be assessed at any time. Since form 5329 is considered...
by BusterMcTaco
Sun Nov 19, 2017 11:49 pm
Forum: Personal Consumer Issues
Topic: Honeymoon Suggestions
Replies: 26
Views: 1900

Re: Honeymoon Suggestions

What's the point of leaving the country if you're not interested in doing anything you can't do here? My thoughts exactly. Go to Hawaii. It is so much simpler and you can venture out of the hotel in confidence and safety. If you're more adventurous, Southeast Asia had affordable luxury, and your bi...
by BusterMcTaco
Sat Nov 18, 2017 10:44 am
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth - should we do it?
Replies: 9
Views: 1037

Re: Backdoor Roth - should we do it?

I'll also point out that at 28% rate (no state income tax?) converting the pre tax IRA funds to Roth is not the end of the world, if the roll over into 401k ends up being a headache. Especially if you might be in a higher tax bracket later in retirement.
by BusterMcTaco
Sun Nov 12, 2017 5:35 pm
Forum: Personal Finance (Not Investing)
Topic: Another "Can We Afford This House" ?
Replies: 28
Views: 2784

Re: Another "Can We Afford This House" ?

1) The $17k is average monthly expenses. Some months we contribute more to Charity, other months we might have extra expenditures, and most months we save more. The 5800 per month is what I have as regular transfers into savings and investments. Then every so often I'll do a lump transfer. I'm sorr...
by BusterMcTaco
Sun Nov 12, 2017 3:05 am
Forum: Personal Finance (Not Investing)
Topic: Another "Can We Afford This House" ?
Replies: 28
Views: 2784

Re: Another "Can We Afford This House" ?

Three thoughts: 1) your expenses+savings+piti don't add up to your net. Although it's late and I'm tired, I'm seeing a $3-$4k monthly discrepancy. Edit: if current PITI is only $2400 it's even bigger. $17k+$2.4k+5.8k=$25.2k monthly. Where's the other $10k?! 2) if you are bringing in $420k after taxe...
by BusterMcTaco
Wed Nov 08, 2017 11:53 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard Voice Verification
Replies: 35
Views: 3837

Re: Vanguard Voice Verification

I tried this on Fidelity and found out that I didn't even need my password anymore (not that I put much stock in a 12 digit numeric-only password). I immediately cancelled it.

Biometrics are dangerous if not in conjunction with something else (have something, know something).
by BusterMcTaco
Wed Nov 08, 2017 11:39 pm
Forum: Personal Finance (Not Investing)
Topic: Lending Money to Business Acquaintance
Replies: 17
Views: 1391

Re: Lending Money to Business Acquaintance

As you haven't spoken with him in years, I don't think there's a strong enough connection here to justify the risks. You presumably sold the business because you wanted to be done with it.
by BusterMcTaco
Wed Nov 08, 2017 11:24 pm
Forum: Personal Finance (Not Investing)
Topic: Did you tell anyone you paid off your mortgage?
Replies: 338
Views: 38471

Re: Did you tell anyone you paid off your mortgage?

flyingaway wrote:
Wed Nov 08, 2017 11:14 pm
Paying off mortgage is really nothing here, compared to the membership of the two comma club.
Hah! My mortgage is in the two comma club.
by BusterMcTaco
Wed Nov 08, 2017 3:21 pm
Forum: Investing - Help with Personal Investments
Topic: ETrade Individual 401k - application and practical issues
Replies: 9
Views: 1134

Re: ETrade Individual 401k - application and practical issues

If you don't have separate accounting for the employer and rollover contributions, would that prevent in-service distribution of those amounts? My understanding (and I'm by no means an expert) is that you can also track contributions separately, like in a spreadsheet, and then apply some percentage...
by BusterMcTaco
Wed Nov 08, 2017 1:55 pm
Forum: Investing - Help with Personal Investments
Topic: ETrade Individual 401k - application and practical issues
Replies: 9
Views: 1134

Re: ETrade Individual 401k - application and practical issues

Of course, you are right. EmployER can be rolled out, not employEE. I thought you were trying to tell me neither could, but I see now you were just clarifying that employEE can be rolled out after age 59 1/2.

Editing my post above.
by BusterMcTaco
Wed Nov 08, 2017 1:30 pm
Forum: Investing - Help with Personal Investments
Topic: ETrade Individual 401k - application and practical issues
Replies: 9
Views: 1134

Re: ETrade Individual 401k - application and practical issues

First, it is not clear to me how many adoption agreements you signed. There is only one employer and there should only be one adoption agreement and plan. If you have more than one adoption agreement that could be a problem. I agree I only should have signed 2 (the initial, and the restatement to a...
by BusterMcTaco
Wed Nov 08, 2017 12:12 am
Forum: Investing - Help with Personal Investments
Topic: ETrade Individual 401k - application and practical issues
Replies: 9
Views: 1134

Re: ETrade Individual 401k - application and practical issues

Final update, I think. I was able to open 4 different accounts under the same plan (well, 6 if you count my wife's). For me: Roth employEE, traditional employEE, traditional employER, and roll-in from existing IRA. Some phone reps said it couldn't be done but in the end it was just a matter of sendi...
by BusterMcTaco
Sat Nov 04, 2017 11:41 am
Forum: Personal Consumer Issues
Topic: How do I select a good employment law attorney?
Replies: 46
Views: 2532

Re: How do I select a good labor-law attorney?

They're still bugging you after you gave notice of retirement? Lordy.
by BusterMcTaco
Sat Oct 28, 2017 3:04 am
Forum: Personal Finance (Not Investing)
Topic: Can I retire today?
Replies: 132
Views: 8352

Re: Can I retire today?

I've always felt that FFs who hit their 90% pension mark are fools to not retire. Why work for 10% of your pay+benefits?!
by BusterMcTaco
Thu Oct 26, 2017 8:41 pm
Forum: Personal Finance (Not Investing)
Topic: Southwest Companion Pass [California only]
Replies: 58
Views: 5205

Re: Southwest Companion Pass [California only]

It is too bad the offer didn't expire Jan 2018, then you would have the pass until end of 2019.. It is common with the normal offers to wait until Jan to finish the qualifying event (normally a purchase.) Note that you can still do this for the 40k points for $1000 minimum spend (or whatever it was...
by BusterMcTaco
Thu Oct 26, 2017 8:40 pm
Forum: Personal Finance (Not Investing)
Topic: Southwest Companion Pass [California only]
Replies: 58
Views: 5205

Re: Southwest Companion Pass [California only]

As I read the offer on the points guy, Southwest must email or mail you this offer. It is not something you can just randomly signed up for. Other restrictions apply. I hope I am incorrect, but this is what I am reading… I heard this too. I know some friends applied even though they were not specif...
by BusterMcTaco
Thu Oct 26, 2017 2:05 am
Forum: Investing - Help with Personal Investments
Topic: How Well Do You Know About Retirement Income?
Replies: 40
Views: 4861

Re: How Well Do You Know About Retirement Income?

I was 33/38, but in my heart I got a 34. I mis-clicked on the first answer and selected 8,000 instead of 4,000. I would say the biggest surprise for me was the percentage of people who end up needing long term care. I optimistically selected 25%, but wouldn't have been surprised if it was 50%. I wa...
by BusterMcTaco
Thu Oct 26, 2017 1:20 am
Forum: Personal Finance (Not Investing)
Topic: Southwest Companion Pass [California only]
Replies: 58
Views: 5205

Re: Southwest Companion Pass [California only]

sco wrote:
Wed Oct 25, 2017 10:48 pm
I did that last year, and don't live in CA...


The points that post, qualify for the Companion pass.
This is different. It's instant CP after first purchase. No need for 2 cards, timing hitting minimum spend, etc.
by BusterMcTaco
Sun Sep 03, 2017 6:36 pm
Forum: Personal Finance (Not Investing)
Topic: Becoming a Landlord: My Experiences
Replies: 136
Views: 24367

Re: Becoming a Landlord: My Experiences

It's good to check out the unit after they have given their 30-day notice, so you see what needs to be fixed or repaired in advance of the tenant vacating. More than that, in California you are required to notify a tenant of their right to such a walkthrough. If they request it, then anything you c...
by BusterMcTaco
Sun Sep 03, 2017 12:51 pm
Forum: Investing - Help with Personal Investments
Topic: Solo 401k if other employer has SEP-IRA
Replies: 11
Views: 573

Re: Solo 401k if other employer has SEP-IRA

DrGoogle2017 wrote:
Sun Sep 03, 2017 12:50 pm
If you have TT, you should model it.
I don't trust TT at all on more obscure topics, but I can certainly give it a try. Good idea.
by BusterMcTaco
Sun Sep 03, 2017 12:44 pm
Forum: Investing - Help with Personal Investments
Topic: Solo 401k if other employer has SEP-IRA
Replies: 11
Views: 573

Re: Solo 401k if other employer has SEP-IRA

I think that's only true of the employee salary deferrals bit: The amount of salary deferrals you can contribute to retirement plans is your individual limit each calendar year no matter how many plans you're in. This limit must be aggregated for these plan types Emphasis mine. The link you posted i...
by BusterMcTaco
Sun Sep 03, 2017 12:34 pm
Forum: Investing - Help with Personal Investments
Topic: Solo 401k if other employer has SEP-IRA
Replies: 11
Views: 573

Re: Solo 401k if other employer has SEP-IRA

Thank you. This was my suspicion based on your previous explanations but I wasn't sure. The employer contribution is also limited to (net self-employment income - employee deferral) / 2. This is new info for me. I think, mathematically, it only applies at low net self-employment income, but may be r...
by BusterMcTaco
Sun Sep 03, 2017 1:07 am
Forum: Investing - Help with Personal Investments
Topic: Solo 401k if other employer has SEP-IRA
Replies: 11
Views: 573

Solo 401k if other employer has SEP-IRA

Hello all, My friend has an (apparently) unusual situation which I haven't been able to find an answer for. She works for an employer who generously contributes to a SEP-IRA, and actually caps it out at $54k for her (she's highly compensated, well over 4x that). She also has 1099-MISC income on the ...
by BusterMcTaco
Sun Aug 27, 2017 10:57 pm
Forum: Investing - Help with Personal Investments
Topic: suggestion on buying our first home
Replies: 31
Views: 2891

Re: suggestion on buying our first home

$500/mo in utilities? That seems high. I'm in a HCOL area and our monthly is half that for 2. The only time I've ever had $500/mo I lived with 5 roommates.

ETA: I guess if the house is big, heating/AC will do it.
by BusterMcTaco
Thu Aug 24, 2017 3:50 pm
Forum: Personal Consumer Issues
Topic: Can dispute an expensive medical bill
Replies: 39
Views: 3255

Re: Can dispute an expensive medical bill

If additional costs weren't disclosed it was not informed consent. I would ask that they waive it or I'd file a complaint with the governing board.
by BusterMcTaco
Thu Aug 24, 2017 12:29 am
Forum: Personal Finance (Not Investing)
Topic: Looking for a house around San Jose, CA
Replies: 36
Views: 4014

Re: Looking for a house around San Jose, CA

Congratulations! If you're like me you'll lose some sleep over it, but that passes quickly. :sharebeer
by BusterMcTaco
Wed Aug 23, 2017 10:01 pm
Forum: Personal Finance (Not Investing)
Topic: Sigh...I'm ready for criticism...how am I doing?
Replies: 50
Views: 7197

Re: Sigh...I'm ready for criticism...how am I doing?

Olemiss540 gives damn good advice. You're just now starting to earn more than residency. You will catch up to the other BS. Don't throw money away on lavish stuff until your debt is paid off and the other house is sold... Low stress, happy family, and you'll be just fine.
by BusterMcTaco
Tue Aug 22, 2017 8:45 pm
Forum: Personal Finance (Not Investing)
Topic: Quarterly Taxes - Best resources or just hire a CPA?
Replies: 11
Views: 822

Re: Quarterly Taxes - Best resources or just hire a CPA?

I'm way above 150k. TT always said I can do 100%. Or maybe my memory is crap. I'll have to pay attention this year.
by BusterMcTaco
Tue Aug 22, 2017 8:21 pm
Forum: Personal Finance (Not Investing)
Topic: Quarterly Taxes - Best resources or just hire a CPA?
Replies: 11
Views: 822

Re: Quarterly Taxes - Best resources or just hire a CPA?

Or 100%. You don't have to do 110% right?
by BusterMcTaco
Mon Aug 21, 2017 10:38 pm
Forum: Investing - Help with Personal Investments
Topic: Another VT vs. VTI + VXUS question
Replies: 3
Views: 890

Re: Another VT vs. VTI + VXUS question

I was going to guess difference in ERs but that definitely doesn't add up.

Not sure if this is still true, but 6 years ago folks were saying VT only holds large caps:
viewtopic.php?t=69616