Search found 101 matches

by EATaxGuy
Wed Jul 05, 2017 12:57 pm
Forum: Personal Finance (Not Investing)
Topic: Quick gut-check on Estate Planning/Protection for Mom
Replies: 24
Views: 1660

Re: Quick gut-check on Estate Planning/Protection for Mom

I suspect you are correct about the planner your mother is considering going to see. Instead of just telling her to ignore this knob, you might consider finding her someone better to talk to. Sounds like mom is concerned about the asset transfer, or bored, or both. Give her a better option. Best of ...
by EATaxGuy
Wed Jul 05, 2017 12:36 pm
Forum: Personal Finance (Not Investing)
Topic: cushion
Replies: 5
Views: 552

Re: cushion

How do you measure cushion?

I try to maintain an 85% probability (based on Monte Carlo simulations) of attaining my financial goals by the desired date. Is there cushion in there?
by EATaxGuy
Fri Jun 30, 2017 1:19 pm
Forum: Personal Finance (Not Investing)
Topic: vetting/finding a financial advisor
Replies: 58
Views: 2116

Re: vetting/finding a financial advisor

Funny! Thanks for sharing-I would love to know how planners/cfps' measure outcome of a plan Clients are there to achieve financial goals, although very very few can actually articulate those goals when they first engage. Most common response I get from a client when I ask about their financial goal...
by EATaxGuy
Fri Jun 30, 2017 12:21 pm
Forum: Personal Finance (Not Investing)
Topic: vetting/finding a financial advisor
Replies: 58
Views: 2116

Re: vetting/finding a financial advisor

Google "Fee-only, fiduciary, financial adviser YOURCITY" and comb through the list of results. That said, most of my business is word-of-mouth. People want someone they can trust, and if they trust me they will recommend me, and people would much rather have a recommendation from someone t...
by EATaxGuy
Fri Jun 30, 2017 11:18 am
Forum: Personal Finance (Not Investing)
Topic: vetting/finding a financial advisor
Replies: 58
Views: 2116

Re: vetting/finding a financial advisor

Thoughts from the other side... I am a fee-only, fiduciary, state-registered investment adviser, and a financial planner. I don't charge for an initial consultation because I want it to be as easy as possible to NOT engage a client I don't want to work with. (Like the ones who tell me they are tax c...
by EATaxGuy
Tue Jun 27, 2017 1:08 pm
Forum: Personal Finance (Not Investing)
Topic: 529 Superfund Question
Replies: 7
Views: 540

Re: 529 Superfund Question

- If I superfund $85k this year, do i have to take the full state deduction in 2017, or can i amortize (if thats the right word) that deduction over multiple years? I did not see any provision in the plan document to allow you to spread the deduction out over several years - although 529 plans will...
by EATaxGuy
Wed Jun 21, 2017 7:11 am
Forum: Personal Finance (Not Investing)
Topic: Step-up basis of inherited rental properties
Replies: 10
Views: 1114

Re: Step-up basis of inherited rental properties

Those look like some pretty darn good questions.

You may want to encourage mom to back off the sale of properties until you get the answers to those questions. You can't undo the tax consequences of a sale once the transaction is complete. (I prepare taxes every year for people who wish they could.)
by EATaxGuy
Fri Jun 16, 2017 12:35 pm
Forum: Personal Finance (Not Investing)
Topic: What if current year's IRA maxed on Jan 2nd but lose job next day & unemployed rest of year?
Replies: 14
Views: 997

Re: What if current year's IRA maxed on Jan 2nd but lose job next day & unemployed rest of year?

Sounds like there would be an early withdrawal penalty (10%?) to remove the $5000 from the IRA if under age 59.5. So that's a $500 tax consequence for the hasty contribution on January 2nd. There is no 10% penalty for timely removing the excess. "Timely" being before you file next year's ...
by EATaxGuy
Fri Jun 16, 2017 11:39 am
Forum: Personal Finance (Not Investing)
Topic: Should I cancel my whole life policy?
Replies: 80
Views: 8653

Re: Should I cancel my whole life policy?

David 1
Goliath 0

As it should be!
:sharebeer
by EATaxGuy
Fri Jun 16, 2017 11:31 am
Forum: Personal Finance (Not Investing)
Topic: Fiduciary Rule and its impact towards a 401k plan as the trustee
Replies: 8
Views: 567

Re: Fiduciary Rule and its impact towards a 401k plan as the trustee

When TRP gives thorough, thoughtful advice like that to their clients, why on earth do we need a fiduciary rule? :oops:

I think I'd have an ERISA lawyer come in for a consultation. You're the fiduciary for the plan, so not knowing if you're compliant is not an option.

:sharebeer
by EATaxGuy
Thu Jun 15, 2017 12:38 pm
Forum: Personal Finance (Not Investing)
Topic: Walk me through a backdoor Roth?
Replies: 42
Views: 2034

Re: Walk me through a backdoor Roth?

If you qualify for deductibility (but don't need it) you don't need a backdoor Roth IRA You just need a Roth IRA. Combined income is around the $200K mark give or take, so we can't contribute the full $5,500 to Roth and would rather not do the guesswork around how much we are eligible to contribute...
by EATaxGuy
Thu Jun 15, 2017 12:35 pm
Forum: Personal Finance (Not Investing)
Topic: Walk me through a backdoor Roth?
Replies: 42
Views: 2034

Re: Walk me through a backdoor Roth?

Mind if I clarify my understanding on the below as well: Traditional IRA: max contribution per year is $5,500 (you can lower your taxable income by $5,500, however if you are converting these into a Roth account you don't want to do that) If you qualify for the deductible IRA, but you don't want th...
by EATaxGuy
Thu Jun 15, 2017 12:29 pm
Forum: Personal Finance (Not Investing)
Topic: Walk me through a backdoor Roth?
Replies: 42
Views: 2034

Re: Walk me through a backdoor Roth?

If you qualify for deductibility (but don't need it) you don't need a backdoor Roth IRA You just need a Roth IRA. Possibly not quite true. My combined retirement income + part-time earned income was over the phase out limit in 2016, so I did the aforementioned backdoor Roth of $6500. But I had no r...
by EATaxGuy
Thu Jun 15, 2017 11:20 am
Forum: Personal Finance (Not Investing)
Topic: Walk me through a backdoor Roth?
Replies: 42
Views: 2034

Re: Walk me through a backdoor Roth?

If you qualify for deductibility (but don't need it) you don't need a backdoor Roth IRA

You just need a Roth IRA.
by EATaxGuy
Wed Jun 14, 2017 12:12 pm
Forum: Personal Finance (Not Investing)
Topic: I'm going to be rich! [Fidelity retirement planner]
Replies: 31
Views: 5371

Re: I'm going to be rich!

Look, Kids! Big Ben! Parliament!
by EATaxGuy
Wed Jun 14, 2017 7:43 am
Forum: Personal Finance (Not Investing)
Topic: Overcharged for tax returns
Replies: 28
Views: 2812

Re: Overcharged for tax returns

Military members can actually get free access to H&R Block software through Military Onesource. (That's how I do my taxes every year). I have found errors on 100% of the self-prepared landlord returns I have reviewed. 100%. Now - only people who are wondering if there is a problem (or they rece...
by EATaxGuy
Thu Jun 08, 2017 11:43 am
Forum: Personal Finance (Not Investing)
Topic: Tripped on this this morning - pros and cons? [HELOC as emergency fund]
Replies: 22
Views: 3488

Re: Tripped on this this morning - pros and cons?

This assumes that you have a mortgage to begin with. No mortgage, no benefit. Ralph Please explain. I have had a HELOC for emergencies for years and haven't had a mortgage for years. The article encourages you to move take all the cash in your emergency fund and use it to pay down your mortgage. Th...
by EATaxGuy
Thu Jun 08, 2017 9:52 am
Forum: Personal Finance (Not Investing)
Topic: Small tax refund or owing taxes?
Replies: 35
Views: 2180

Re: Small tax refund or owing taxes?

Iowa Form W4

Fill it out, give to your employer. Put the additional amount you want withheld on line 7.
by EATaxGuy
Thu Jun 08, 2017 7:09 am
Forum: Personal Finance (Not Investing)
Topic: How often do you redeem your credit card cash rewards?
Replies: 54
Views: 3167

Re: How often do you redeem your credit card cash rewards?

Bwise1 wrote:I usually make sure she wins.

You have lived up to your name, Sir.

:sharebeer
by EATaxGuy
Wed Jun 07, 2017 2:22 pm
Forum: Personal Finance (Not Investing)
Topic: Young adults and gifts versus support
Replies: 5
Views: 903

Re: Young adults and gifts versus support

Take for example rent. If we contribute the amount we pay for rent to the 529 then immediately distribute it back to us in reimbursement, it counts as a gift. Whereas if we pay the rent and don't seek reimbursement from the 529, it counts as support. Do I have this right? If so, the logic of this e...
by EATaxGuy
Tue Jun 06, 2017 2:15 pm
Forum: Personal Finance (Not Investing)
Topic: What do you guys do on the side?
Replies: 165
Views: 23173

Re: What do you guys do on the side?

2004-2006 I played a lot of internet poker, chased online casino bonuses, and did a lot of sports book arbitrage betting. Made about $60K total, but the UIGEA came along and wrecked that gig.

Now I build Adirondack furniture in my garage. I sell some of it, but just enough to cover my costs.
by EATaxGuy
Tue Jun 06, 2017 10:37 am
Forum: Personal Finance (Not Investing)
Topic: Small tax refund or owing taxes?
Replies: 35
Views: 2180

Re: Small tax refund or owing taxes?

I guess that could happen if if you owe the IRs. You don't have to guess. My wife of 25 years and I file jointly and owe every year. Last year someone filed a 2015 tax return in her name with status of single, claiming a fat return. Also filed a state return. It was a big hassle to get fixed. My fa...
by EATaxGuy
Tue Jun 06, 2017 9:29 am
Forum: Personal Finance (Not Investing)
Topic: Small tax refund or owing taxes?
Replies: 35
Views: 2180

Re: Small tax refund or owing taxes?

My state taxes all federal refunds on your next years tax return which is a much bigger penalty than the loss of interest so I try to owe. That's because Iowa allows you to deduct your federal taxes withheld even if you don't itemize. You aren't being taxed or penalized for your federal income tax ...
by EATaxGuy
Thu Jun 01, 2017 7:08 am
Forum: Personal Finance (Not Investing)
Topic: Why does step-up basis apply to estates, but not gifts?
Replies: 29
Views: 2078

Re: Why does step-up basis apply to estates, but not gifts?

If you really want your head to hurt, look up the generational skipping transfer tax rules.
by EATaxGuy
Wed May 31, 2017 1:56 pm
Forum: Personal Finance (Not Investing)
Topic: i am my own "guy," but not sure I should advertise that
Replies: 107
Views: 13917

Re: i am my own "guy," but not sure I should advertise that

Grt2bOutdoors wrote:
EATaxGuy wrote:
frugalecon wrote: "You read that for entertainment? Really?"

Try telling people you find taxes interesting. :shock:


I read mutual fund prospectus for fun...... :twisted:

Yeah, you gotta take that one to your grave...
by EATaxGuy
Wed May 31, 2017 6:52 am
Forum: Personal Finance (Not Investing)
Topic: i am my own "guy," but not sure I should advertise that
Replies: 107
Views: 13917

Re: i am my own "guy," but not sure I should advertise that

frugalecon wrote: "You read that for entertainment? Really?"

Try telling people you find taxes interesting. :shock:
by EATaxGuy
Tue May 30, 2017 1:57 pm
Forum: Personal Finance (Not Investing)
Topic: 529 Withdrawals for Room and Board
Replies: 10
Views: 1408

Re: 529 Withdrawals for Room and Board

https://www.law.cornell.edu/uscode/text/26/529

The word "employment" does not appear in section 529 of the internal revenue code.
by EATaxGuy
Tue May 30, 2017 8:52 am
Forum: Personal Finance (Not Investing)
Topic: How do I transfer property from mother-in-law to wife and I?
Replies: 21
Views: 1885

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

Gardener wrote:The compelling reason to have the deed transferred (if that is the way to do it) to us now is so that we could pay off the relatively high mortgage rate of 6%.

Why don't you just refinance?
by EATaxGuy
Tue May 30, 2017 8:38 am
Forum: Personal Finance (Not Investing)
Topic: How do I transfer property from mother-in-law to wife and I?
Replies: 21
Views: 1885

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

OP posting... Rupert, I looked it up, but am still a bit ignorant on stepped up tax basis. Wouldn't stepped up tax basis be an issue whether or not mother in law transferred property to us now or upon her death? No. If she gifts it to you, then you get the house at HER basis. (Unless the property h...
by EATaxGuy
Tue May 30, 2017 8:33 am
Forum: Personal Finance (Not Investing)
Topic: How do I transfer property from mother-in-law to wife and I?
Replies: 21
Views: 1885

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

OP here. 1. EATaxGuy- are the two points you made state specific or apply to anyone in the U.S? 2. So, we could dodge the first tax bullet by her requesting a lifetime exemption (and using a tax professional). 3. How do they quantify/qualify living in a house for two years? Would vacationing in the...
by EATaxGuy
Fri May 26, 2017 7:19 am
Forum: Personal Finance (Not Investing)
Topic: When does Saving become missing out on life?
Replies: 74
Views: 8593

Re: When does Saving become missing out on life?

We made a plan and figured out how much we needed to save to achieve our plan Bingo. The objective isn't "to save". The objective is to reach your financial goals. Start with the end in mind. If my goal(s) require accumulating $2M by age 60 and I have $1M at age 60, that's a problem. If I...
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: 21
Views: 1885

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: 724

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: 953

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: 588

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: 1781

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: 1154

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: 1154

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: 1154

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: 1154

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: 4392

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: 1617

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: 1617

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: 3921

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: 728

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: 964

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: 4986

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: 1065

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: 5491

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...

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