Search found 70 matches

by EATaxGuy
Wed May 24, 2017 11:08 am
Forum: Personal Finance (Not Investing)
Topic: How do I transfer property from mother-in-law to wife and I?
Replies: 6
Views: 749

Re: How do I transfer property from mother-in-law to wife and I?

Is this a taxable event (aside from future property taxes? Yes. Possibly twice. First is upon transfer (assuming the property is worth more than $28K). Your MIL would owe transfer taxes - which she can easily get out of by requesting that she use part of her lifetime exemption. It's a paperwork dri...
by EATaxGuy
Wed May 24, 2017 10:57 am
Forum: Personal Finance (Not Investing)
Topic: Amended taxes, still not showing in IRS website
Replies: 8
Views: 605

Re: Amended taxes, still not showing in IRS website

Yeah I was thinking since I had amended our taxes (2016 Taxes) literally 2 weeks after filing them and right before the deadline that they might be swamped. For future reference... If you are changing your return BEFORE the filing deadline, then you should file a superseded return, not an amended r...
by EATaxGuy
Wed May 24, 2017 10:44 am
Forum: Personal Finance (Not Investing)
Topic: Max a 529?
Replies: 8
Views: 819

Re: Max a 529?

Also, if your state offers a tax deduction you may want to contribute the tax deductable maximum every year. Virginia offers such a tax deduction on VA529 contributions. Virginia also offers the opportunity to pay that tax deduction back if you use the money for something other than qualified highe...
by EATaxGuy
Tue May 23, 2017 10:39 am
Forum: Personal Finance (Not Investing)
Topic: Question for Sole Proprietors / Small (Micro) Business Owners
Replies: 6
Views: 503

Re: Question for Sole Proprietors / Small (Micro) Business Owners

I would think that as a sole proprietor/micro business owner, personal finance and business finances are mostly blended together? It is recommended to keep as much separation as possible between business and personal finances. Different banks, different lines of credit, etc. Business expenses are t...
by EATaxGuy
Tue May 23, 2017 10:15 am
Forum: Personal Finance (Not Investing)
Topic: Present value of COLA pension
Replies: 20
Views: 1319

Re: Present value of COLA pension

The original posts say "55% survivor benefit". We need the original poster (or someone familiar with military pensions) to say whether this means ⋅ Pension drops to 55% when either annuitant dies or ⋅ Pension drops to 55% only if primary annuitant dies first. I.e., if ...
by EATaxGuy
Thu May 18, 2017 2:13 pm
Forum: Personal Finance (Not Investing)
Topic: 401k excess contribution/highly compensated employee
Replies: 17
Views: 970

Re: 401k excess contribution/highly compensated employee

lazydavid wrote:The match would have to be 100% on the first 4% instead of 50% on the first 8%. The results are effectively the same, since the 10% cap on HCE contributions means that the average non-HCE contribution is 8%.

UGH! :oops:
by EATaxGuy
Thu May 18, 2017 1:05 pm
Forum: Personal Finance (Not Investing)
Topic: 401k excess contribution/highly compensated employee
Replies: 17
Views: 970

Re: 401k excess contribution/highly compensated employee

Even non-crappy plans get saddled with this nonsense. Ours is decidedly decent: -Pretty good selection of funds, many of them high-quality and extremely low-cost: 6bp for international index, 4bp for bonds, 3.5bp for total market or S&P 500 -Contribution available by the 2nd paycheck (delay jus...
by EATaxGuy
Thu May 18, 2017 10:44 am
Forum: Personal Finance (Not Investing)
Topic: 401k excess contribution/highly compensated employee
Replies: 17
Views: 970

Re: 401k excess contribution/highly compensated employee

This may be a stupid question, but what makes one plan better or worse than another? As far as I know we don't have a choice since our 401k is run through our payroll company (ADP Total Source). I don't see my employer doing a match any time soon, but should we be looking for a different company, b...
by EATaxGuy
Thu May 18, 2017 10:16 am
Forum: Personal Finance (Not Investing)
Topic: 401k excess contribution/highly compensated employee
Replies: 17
Views: 970

Re: 401k excess contribution/highly compensated employee

Open Wide wrote:even though it only feels like it's punishing the HCE's.

It is. The intent is to encourage the company offer a less crappy plan so that more non-HCEs will participate. Unfortunately, many companies seem to be unconcerned with being told their plan is crappy.
by EATaxGuy
Wed May 17, 2017 6:49 am
Forum: Personal Finance (Not Investing)
Topic: Delay SS, but claim if market plunges
Replies: 49
Views: 3981

Re: Delay SS, but claim if market plunges

Or you could go back to work.

I wouldn't have any money I planned to spend in the next 3-5 years invested in stocks or bonds, that covers the entire period between FRA and 70 for me.

:sharebeer
by EATaxGuy
Tue May 16, 2017 2:05 pm
Forum: Personal Finance (Not Investing)
Topic: Selling rental condo - capital gains even though selling at same price??
Replies: 23
Views: 1457

Re: Selling rental condo - capital gains even though selling at same price??

If you have suspended passive losses you can take these in the year of the sale and they are deducted at regular income tax rates. Unrecaptured section 1250 gains (a.k.a. depreciation recapture) are taxed at regular income tax rates, but capped at 25% (in reality most people just pay 25%) - NOT cap...
by EATaxGuy
Tue May 16, 2017 1:39 pm
Forum: Personal Finance (Not Investing)
Topic: Selling rental condo - capital gains even though selling at same price??
Replies: 23
Views: 1457

Re: Selling rental condo - capital gains even though selling at same price??

The depreciable basis of a personal property converted to rental use is the lesser of cost basis or FMV on the date of conversion. https://www.irs.gov/publications/p527/ch04.html#en_US_2016_publink1000219151 You should report the sale of the property on form 4797. If you have suspended passive losse...
by EATaxGuy
Thu May 11, 2017 11:59 am
Forum: Personal Finance (Not Investing)
Topic: My plan to use policy loans to fund first five years of retirement
Replies: 61
Views: 3376

Re: My plan to use policy loans to fund first five years of retirement

Instead of having a fixed time period have you considered using the loans only when the rest of your portfolio returns are down? In other words, you could essentially insure your portfolio (to some degree) against sequence of returns risk - avoiding/minimizing withdrawals when returns are bad.
by EATaxGuy
Wed May 10, 2017 11:35 am
Forum: Personal Finance (Not Investing)
Topic: Able to Back Door Roth?
Replies: 8
Views: 642

Re: Able to Back Door Roth?

I had a client move an old 403b into her older TSP just 3 months ago. I don't know if there are differences between her situation and yours, but it is certainly worth looking into.
by EATaxGuy
Tue May 09, 2017 9:59 am
Forum: Personal Finance (Not Investing)
Topic: How to start a scholarship?
Replies: 9
Views: 874

Re: How to start a scholarship?

you could Google "Corrine Brown" and "One Door for Education" for information about how NOT to do it. :oops:
by EATaxGuy
Tue May 09, 2017 7:19 am
Forum: Personal Finance (Not Investing)
Topic: Long Term [Care] Rates just went Through the roof!
Replies: 34
Views: 4667

Re: Long Term [Care] Rates just went Through the roof!

This has nothing to do with health or age (so they say). Contact the most powerful politician in your state (the Insurance Commissioner) and file a complaint. If you bought from a reputable insurer it is probably within their rights (authorized by the insurance commissioner in your state) to raise ...
by EATaxGuy
Mon May 08, 2017 12:50 pm
Forum: Personal Finance (Not Investing)
Topic: Buying second home in Georgia- tax implications
Replies: 9
Views: 899

Re: Buying second home in Georgia- tax implications

The South Carolina return starts with federal taxable income (which would already have the mortgage interest from the GA house deducted from it.) Then you have to add back in certain items. I do not see where mortgage interest paid on a property in another state is an add-back on the SC return. http...
by EATaxGuy
Mon May 08, 2017 11:53 am
Forum: Personal Finance (Not Investing)
Topic: Passive activity loss adjustment for rental property
Replies: 22
Views: 5309

Re: Passive activity loss adjustment for rental property

I have a lot of money in IRAs that I could roll over to my Roth IRA. This is referred to as a conversion , not a rollover. (I point that out so you can google more effectively for information.) Is there a limit to how much I can rollover? No, you can convert as much to Roth as you want to, but ther...
by EATaxGuy
Mon May 08, 2017 10:59 am
Forum: Personal Finance (Not Investing)
Topic: Foreign Earned Income Exclusion, passive income, and standard deduction
Replies: 10
Views: 788

Re: Foreign Earned Income Exclusion, passive income, and standard deduction

James1 wrote:If your "other income" goes over the deduction+exemption, then it will be taxed as if it were in the higher bracket.

You are completely correct. Disregard my previous response. I was having an aneurism or something. :oops:

:sharebeer
by EATaxGuy
Mon May 08, 2017 10:57 am
Forum: Personal Finance (Not Investing)
Topic: Federal job, "military time buyback" for pension
Replies: 22
Views: 1815

Re: Just pay the 6K and don't look back

delamer wrote:My take is that people overreact to the TSP constraints.

Not everyone is a Boglehead. :)
by EATaxGuy
Mon May 08, 2017 8:05 am
Forum: Personal Finance (Not Investing)
Topic: Most Common Financial Mistakes
Replies: 108
Views: 13621

Re: Most Common Financial Mistakes

1. Whole Life Insurance 2. Not asking (in advance) for tax help on a rental property. I see this often as I prepare taxes in an area densely populated by military families. People buy a house and a few years later get orders elsewhere. They decide (for a variety of reasons) to become landlords. With...
by EATaxGuy
Mon May 08, 2017 7:50 am
Forum: Personal Finance (Not Investing)
Topic: Federal job, "military time buyback" for pension
Replies: 22
Views: 1815

Re: Just pay the 6K and don't look back

TSP is the best tax-deferred plan ever. I don't know about "ever", but it is the best one for accumulation currently available. I have some clients who find the distribution rules too constraining. They are rolling out to an IRA after retirement in order to have unfettered access to their...
by EATaxGuy
Mon May 08, 2017 7:31 am
Forum: Personal Finance (Not Investing)
Topic: Passive activity loss adjustment for rental property
Replies: 22
Views: 5309

Re: Passive activity loss adjustment for rental property

Doesn anyone know of an online calculatory that accommodates entereing the purchase price, improvements and other adjustments (unamortized purchase costs), sales price, sales costs, depreciation, and, most importantly, passive activity loss carry overs? This is straight addition/subtraction. I just...
by EATaxGuy
Mon May 08, 2017 7:28 am
Forum: Personal Finance (Not Investing)
Topic: Foreign Earned Income Exclusion, passive income, and standard deduction
Replies: 10
Views: 788

Re: Foreign Earned Income Exclusion, passive income, and standard deduction

James1 wrote:You can also use your standard deduction space to convert tIRAs to roths and pay no tax on the conversions.

+1
You might even consider converting significant tIRA holdings (if you have them) to Roths; up to the 10% or 15% marginal tax rate limit. Take full advantage of this situation.
by EATaxGuy
Fri May 05, 2017 2:00 pm
Forum: Local Chapters and Bogleheads Community
Topic: What Happened to Hampton Roads Chapter
Replies: 12
Views: 1634

Re: What Happened to Hampton Roads Chapter

How much interest is there in restarting the Hampton Roads chapter? I think I read somewhere we need at least 5 members.
by EATaxGuy
Wed May 03, 2017 10:34 am
Forum: Personal Finance (Not Investing)
Topic: Rental property
Replies: 8
Views: 992

Re: Rental property

Many tax professionals offer a free review of previously filed returns. Find one and take yours to him/her and see what they have to say. You may be missing something there.

Best of Luck! :sharebeer
by EATaxGuy
Wed May 03, 2017 8:09 am
Forum: Personal Finance (Not Investing)
Topic: Rent to friend or sell home?
Replies: 9
Views: 900

Re: Rent to friend or sell home?

I would only rent to a friend if I were one day willing to choose between the rent and the friend.
by EATaxGuy
Fri Apr 21, 2017 9:06 am
Forum: Personal Finance (Not Investing)
Topic: CPA or TurboTax
Replies: 18
Views: 1480

Re: CPA or TurboTax

Lots of tax professionals offer a free review of a prior year return. Take one up on the offer. Have a pro review your tax return. If they find nothing then you know for sure TT is good enough for your needs.

Good Luck! :sharebeer
by EATaxGuy
Thu Apr 20, 2017 1:56 pm
Forum: Personal Finance (Not Investing)
Topic: Questions about 529
Replies: 4
Views: 657

Re: Questions about 529

3. In Virginia you can deduct $4,000 per account to which you've contributed from your Virginia income taxes. If you contributed more than that the unused deduction carries over until it is used. If you are over 70 there is no annual limit to the deduction. Virginia grandparents can go buck wiley on...
by EATaxGuy
Tue Apr 18, 2017 12:59 pm
Forum: Personal Finance (Not Investing)
Topic: Did anything surprise you in your 2016 taxes?
Replies: 83
Views: 7073

Re: Did anything surprise you in your 2016 taxes?

Someone had me review their 2015 return and despite having an expensive employer-provided health insurance plan for his entire family, he had paid the ACA shared responsibility (penalty) payment.
:oops:
by EATaxGuy
Tue Apr 18, 2017 7:27 am
Forum: Personal Finance (Not Investing)
Topic: Any Way to Further Reduce Taxes?
Replies: 14
Views: 1282

Re: Any Way to Further Reduce Taxes?

2. If your business expenses exceed revenue (to achieve the OPs goal of lowering taxes) then the increased contributions to a SoloK tied to the business can't materialize. I was aware that your maximum elective contributions for a 401k is $18,000 for all plans. But couldn't your solo 401k provide a...
by EATaxGuy
Mon Apr 17, 2017 1:43 pm
Forum: Personal Finance (Not Investing)
Topic: Any Way to Further Reduce Taxes?
Replies: 14
Views: 1282

Re: Any Way to Further Reduce Taxes?

Ways to reduce income taxes: 1) Make less income. This isn't facetious. See if your employer can provide benefits that aren't directly paid in cash, but offset an expense you'd otherwise have. Paying for parking, onsite child care, insurance coverage, education, etc are examples. In California, som...
by EATaxGuy
Mon Apr 17, 2017 9:09 am
Forum: Personal Finance (Not Investing)
Topic: How to Avoid Tax Refund Being Seized
Replies: 37
Views: 4409

Re: How to Avoid Tax Refund Being Seized

Katietsu wrote:Married filing separately is certainly an option. But sometimes filing joint and completing an injured spouse Form will result in a larger refund. Both options would ideally be compared.

+1
by EATaxGuy
Mon Apr 17, 2017 9:02 am
Forum: Personal Finance (Not Investing)
Topic: is it too late for backdoor roth?
Replies: 7
Views: 564

Re: is it too late for backdoor roth?

You have until midnight tomorrow (April 18) to get the money into the traditional IRA. You can make the conversion to a Roth at any time after that.

File an 8606 after you make the non-deductible contribution. You don't need to amend the 2016 return, just file an 8606.
by EATaxGuy
Mon Apr 17, 2017 8:50 am
Forum: Personal Finance (Not Investing)
Topic: Would you ever rent a house to a family member?
Replies: 21
Views: 1374

Re: Would you ever rent a house to a family member?

Only if you're comfortable making this decision at some point:

Evicting them
or
Not collecting the rent
by EATaxGuy
Sat Apr 15, 2017 4:30 pm
Forum: Personal Finance (Not Investing)
Topic: How to Avoid Tax Refund Being Seized
Replies: 37
Views: 4409

Re: How to Avoid Tax Refund Being Seized

I'm hoping the fact that he's started paying means it won't automatically be taken this time. Hope is wonderful thing, but rarely the best course of action. The IRS will not seize your refund for any old bad debt. There was some federal nexus (guaranteed student loans, possibly) or stiffed child su...
by EATaxGuy
Sat Apr 15, 2017 4:26 pm
Forum: Personal Finance (Not Investing)
Topic: How to Avoid Tax Refund Being Seized
Replies: 37
Views: 4409

Re: How to Avoid Tax Refund Being Seized

taxck33 wrote: (FWIW, I didn't file an injured spouse claim).

Why not? That's what it is for.
by EATaxGuy
Sat Apr 15, 2017 2:31 pm
Forum: Personal Finance (Not Investing)
Topic: Physician using Turbotax, owing 30K so far already...
Replies: 65
Views: 7133

Re: Expert professional advice needed

annual physicals are basically useless. So educate me, for two physician household both normal W2 employees (without corporation, business, home/office etc) what is a CPA or tax professional going to bring to the table. Same thing my annual physical brings to the table. There might not be anything ...
by EATaxGuy
Sat Apr 15, 2017 12:35 pm
Forum: Personal Finance (Not Investing)
Topic: Do you have an umbrella policy?
Replies: 129
Views: 12703

Re: Do you have an umbrella policy?

imabeliever wrote: Of course, even better is not to ever use it

Isn't that true for all insurance? I don't recall ever buying an insurance policy and hoping to get to use it right away. :)
by EATaxGuy
Sat Apr 15, 2017 12:21 pm
Forum: Personal Finance (Not Investing)
Topic: Physician using Turbotax, owing 30K so far already...
Replies: 65
Views: 7133

Re: Expert professional advice needed

So educate me, for two physician household both normal W2 employees (without corporation, business, home/office etc) what is a CPA or tax professional going to bring to the table. Same thing my annual physical brings to the table. There might not be anything wrong, but how do I know unless an exper...
by EATaxGuy
Sat Apr 15, 2017 11:02 am
Forum: Personal Finance (Not Investing)
Topic: Physician using Turbotax, owing 30K so far already...
Replies: 65
Views: 7133

Re: Expert professional advice needed

beezquimby wrote:Dual physician household here, two regular W2 households don't need anything more than turbotax. Just my opinion.

I am an enrolled agent. For my healthcare I don't need anything more than WebMD and access to Canadian drugs on the internet. Just my opinion. :)
by EATaxGuy
Fri Apr 14, 2017 4:53 pm
Forum: Personal Finance (Not Investing)
Topic: Tax question on married filing separately
Replies: 4
Views: 326

Re: Tax question on married filing separately

http://tax.illinois.gov/TaxForms/IncmCurrentYear/Individual/IL-1040-Instr.pdf Page 3: If you filed a joint federal return and one spouse is an Illinois resident while the other spouse is a nonresident or a part-year resident, you may file separate Illinois returns. If you file a joint Illinois retur...
by EATaxGuy
Fri Apr 14, 2017 3:41 pm
Forum: Personal Finance (Not Investing)
Topic: Maxed out roth
Replies: 6
Views: 469

Re: Maxed out roth

Hi I maxed out my Roth IRA. The question is can I open up a CD with a bank and be not penalized. Thanks. And if so what else could I invest in A Roth IRA is a container for investments. A CD is an investment. You can buy a CD as long as you don't try to put it in an IRA container, because your IRA ...
by EATaxGuy
Fri Apr 14, 2017 3:36 pm
Forum: Personal Finance (Not Investing)
Topic: Taxes- Should I take De Minimis Safe Harbor Election?
Replies: 5
Views: 742

Re: Taxes- Should I take Di Minimus Safe Harbor Election?

If you don't need the deduction of expensing items under $2,500 this year, then it would make sense to depreciate them to move some of that deduction out into future years when it would be more valuable. You ALREADY need to keep every receipt. That's how you prove to the IRS that you bought what yo...
by EATaxGuy
Fri Apr 14, 2017 7:31 am
Forum: Personal Finance (Not Investing)
Topic: Turbotax bug or is it me: state tax refund increasing NIIT?
Replies: 15
Views: 1025

Re: Turbotax bug or is it me: state tax refund increasing NIIT?

Turbotax took that info (figured out from last year's file) and ended up putting $4790 into 2016 Form 1040, Line 10. TT doesn't explain how it got that number. If you had claimed a state SALES tax deduction instead of the state INCOME tax deduction in 2015, you would not have to include your 2015 s...
by EATaxGuy
Fri Apr 14, 2017 7:26 am
Forum: Personal Finance (Not Investing)
Topic: Taxes- Should I take De Minimis Safe Harbor Election?
Replies: 5
Views: 742

Re: Taxes- Should I take Di Minimus Safe Harbor Election?

If you don't need the deduction of expensing items under $2,500 this year, then it would make sense to depreciate them to move some of that deduction out into future years when it would be more valuable. You ALREADY need to keep every receipt. That's how you prove to the IRS that you bought what you...
by EATaxGuy
Fri Apr 14, 2017 7:19 am
Forum: Personal Finance (Not Investing)
Topic: What constitutes "a lot" of money?
Replies: 81
Views: 11300

Re: What constitutes "a lot" of money?

Anyone who has $1 more than me has a lot of money. :P
by EATaxGuy
Fri Apr 14, 2017 7:17 am
Forum: Personal Finance (Not Investing)
Topic: ROTH IRA Contribution
Replies: 1
Views: 229

Re: ROTH IRA Contribution

W2 box 1 is not 'take home pay". It includes the amount of federal income taxes withheld.
Your Roth IRA contribution for you and your spouse combined will be limited to that amount.
by EATaxGuy
Fri Apr 14, 2017 7:08 am
Forum: Personal Finance (Not Investing)
Topic: Physician using Turbotax, owing 30K so far already...
Replies: 65
Views: 7133

Re: Physician using Turbotax, owing 30K so far already...

1. While it is easy to get fixated on the amount you owe at tax time, this is really a side show. Your tax return is merely reconciling what you've paid with what you owe in total tax. The real number to be watching every year is on line 63 of your form 1040 - your total tax owed. 2. My software has...

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