Search found 2958 matches

by Gill
Sun Mar 26, 2017 4:46 pm
Forum: Personal Finance (Not Investing)
Topic: RMD Question:
Replies: 7
Views: 630

Re: RMD Question:

If you have TIRA basis and are doing a QCD, you do NOT enter the QCD portion of the distribution on line 7 of Form 8606. Tax software should handle this correctly, but the 8606 and line 15 should be carefully reviewed. If the entire RMD is 100% QCD Form 8606 would not be filed. For the OP, the gros...
by Gill
Sun Mar 26, 2017 3:30 pm
Forum: Personal Finance (Not Investing)
Topic: Revokable Living Trust without telling the executor & beneficiary(s)?
Replies: 22
Views: 1245

Re: Revocable Living Trust without telling the executor & beneficiary(s)?

In a revocable living trust that you set up, you will be the original trustee. This is only one form of a RLT, sometimes known as a self declaration of trust. It is very common to have a RLT with a third party such as a trust company being the original trustee which continues on as trustee after th...
by Gill
Sun Mar 26, 2017 7:37 am
Forum: Investing - Help with Personal Investments
Topic: Retire Early - Where to Place My Money With the Least Tax
Replies: 6
Views: 578

Re: Retire Early - Where to Place My Money With the Least Tax

The idea is not to pay the least tax but to have the most left over after tax.
Gill
by Gill
Sat Mar 25, 2017 7:47 pm
Forum: Personal Finance (Not Investing)
Topic: Revokable Living Trust without telling the executor & beneficiary(s)?
Replies: 22
Views: 1245

Re: Revocable Living Trust without telling the executor & beneficiary(s)?

In a revocable living trust that you set up, you will be the original trustee. This is only one form of a RLT, sometimes known as a self declaration of trust. It is very common to have a RLT with a third party such as a trust company being the original trustee which continues on as trustee after th...
by Gill
Sat Mar 25, 2017 4:34 pm
Forum: Investing - Help with Personal Investments
Topic: Making sure i understand income taxes after retirement
Replies: 14
Views: 2574

Re: Making sure i understand income taxes after retirement

Only part time business income. Gill Hi Gill - i much appreciate your insight / advice. It's way better than what i know on my own, which is next to nothing. Let me elaborate and get you to confirm your reply, so I'll feel better about understanding you. For 2016 i contributed $53k to a SEP IRA and...
by Gill
Fri Mar 24, 2017 4:55 pm
Forum: Personal Consumer Issues
Topic: Car Dealer Forgot to Charge Sales Tax - Ouch
Replies: 39
Views: 3384

Re: Car Dealer Forgot to Charge Sales Tax - Ouch

> If the OP genuinely didn't pay sales tax on a taxable item, he should pay his state directly and not the dealership. I don't get this. On every other item that I buy within my state, the seller pays the sales tax. Why is a car any different? You are paying the sales tax. The seller simply remits ...
by Gill
Fri Mar 24, 2017 10:02 am
Forum: Personal Finance (Not Investing)
Topic: Irrevocable Trust Distribution: Tax Reporting by Beneficiary
Replies: 18
Views: 619

Re: Irrevocable Trust Distribution: Tax Reporting by Beneficiary

Yes, OK. Hadn't thought of that. Intentionally defective so that the income is taxed to the grantor, right?
Gill
by Gill
Fri Mar 24, 2017 9:31 am
Forum: Personal Finance (Not Investing)
Topic: Irrevocable Trust Distribution: Tax Reporting by Beneficiary
Replies: 18
Views: 619

Re: Irrevocable Trust Distribution: Tax Reporting by Beneficiary

... I still question the statement that all taxes are paid by the trust when there have been distributions to you. The trust has capital gains but no ordinary income net of expenses? It's a grantor trust and when they said the trust was paying the taxes, it's actually the grantor who's paying the t...
by Gill
Fri Mar 24, 2017 9:29 am
Forum: Personal Finance (Not Investing)
Topic: Primary residence mortgage over the 1.1M mortgage interest deduction cap ... what to do?
Replies: 13
Views: 1005

Re: Primary residence mortgage over the 1.1M mortgage interest deduction cap ... what to do?

The Wizard wrote:
malabargold wrote:Agree with many: buy an affordable house.

The OP didn't actually ask for advice at this level. His question had to do with taxes...

And the advice solves the problem of not being able to deduct the interest...
Gill
by Gill
Fri Mar 24, 2017 8:39 am
Forum: Personal Finance (Not Investing)
Topic: Quarterly Tax Payments Planning to Avoid Refund and Penalties
Replies: 19
Views: 836

Re: Quarterly Tax Payments Planning to Avoid Refund and Penalties

I have to say I'm generally fine getting a refund. This is for two reasons: 1) I'm happy to use the federal refund to get space extra purchase of I-bonds 2) I'm not very worried about the lost float of a (small) interest free loan to the government, as interest rates are really pretty low these day...
by Gill
Fri Mar 24, 2017 8:19 am
Forum: Personal Finance (Not Investing)
Topic: Irrevocable Trust Distribution: Tax Reporting by Beneficiary
Replies: 18
Views: 619

Re: Irrevocable Trust Distribution: Tax Reporting by Beneficiary

No, if there is nothing to be reported by the beneficiary there is no K-1. Note that sometimes there might be excess deductions reportable by the beneficiary as well as income.
Gill

P.S. I still question the statement that all taxes are paid by the trust when there have been distributions to you.
by Gill
Thu Mar 23, 2017 8:42 pm
Forum: Personal Finance (Not Investing)
Topic: brother managing mother's investments?
Replies: 7
Views: 1031

Re: brother managing mother's investments?

Scary, particularly his view is the investments are too conservative. I'd suggest having him stay out of it.
Gill
by Gill
Thu Mar 23, 2017 8:40 pm
Forum: Personal Finance (Not Investing)
Topic: Capital Gains on real estate?
Replies: 9
Views: 566

Re: Capital Gains on real estate?

Have them do the best they can coming up with capital improvements made to the house over the years. Estimate the cost and the approximate date and add it to the original cost.
Gill
by Gill
Thu Mar 23, 2017 8:23 pm
Forum: Personal Finance (Not Investing)
Topic: Irrevocable Trust Distribution: Tax Reporting by Beneficiary
Replies: 18
Views: 619

Re: Irrevocable Trust Distribution: Tax Reporting by Beneficiary

I'm not sure that is a good idea. Isn't there some way you can find out who is preparing the tax return? Are you sure there was income in the trust last year? There may have been deductions that offset all the income so nothing was taxed to you. I would hope someone is filing a return for the trust....
by Gill
Thu Mar 23, 2017 7:41 pm
Forum: Personal Finance (Not Investing)
Topic: Irrevocable Trust Distribution: Tax Reporting by Beneficiary
Replies: 18
Views: 619

Re: Irrevocable Trust Distribution: Tax Reporting by Beneficiary

In looking at the earlier thread, to which I responded, it doesn't appear you can rely on anything with your two siblings as trustees. I don't know how the trust can distribute income to you without generating a K-1 The fact you haven't received one doesn't indicate you shouldn't. K-1's do not neces...
by Gill
Thu Mar 23, 2017 11:40 am
Forum: Personal Finance (Not Investing)
Topic: Living Trust - Death of grantor/trustee
Replies: 18
Views: 1257

Re: Living Trust - Death of grantor/trustee

celia wrote: A trust tax return does not have exemptions...

That is incorrect. A complex trust has a $100 exemption, a simple trust a $300 exemption and an estate has a $600 exemption.
Gill
by Gill
Wed Mar 22, 2017 7:51 pm
Forum: Personal Finance (Not Investing)
Topic: Administration of relative's estate
Replies: 36
Views: 2307

Re: Administration of relative's estate

Another possibility is to see if you can determine where his mail is going. Mail often gives many clues to a person's financial life. Gill My most recent mail to him was returned and marked "deceased," so it is apparently not going anywhere. See if you can find who is marking that on the ...
by Gill
Wed Mar 22, 2017 3:53 pm
Forum: Personal Finance (Not Investing)
Topic: Administration of relative's estate
Replies: 36
Views: 2307

Re: Administration of relative's estate

This is quite a common situation in Florida where people die with no relatives in the area. Does he have relatives elsewhere besides you who might know what arrangements he had made? One place to check is with the court in the county where he died to see if a will has been placed on file or if anyon...
by Gill
Wed Mar 22, 2017 5:29 am
Forum: Personal Finance (Not Investing)
Topic: Using 25-30 year old EE bonds to fund 529
Replies: 12
Views: 996

Re: Using 25-30 year old EE bonds to fund 529

Gill wrote:Those 1986 bonds have matured and the interest should be reported on the 2016 return.
Gill

You are still discussing how to use these bonds. Did you see my earlier post?
Gill
by Gill
Tue Mar 21, 2017 6:13 pm
Forum: Personal Finance (Not Investing)
Topic: Living Trust - Death of grantor/trustee
Replies: 18
Views: 1257

Re: Living Trust - Death of grantor/trustee

Thank you Gil. So account numbers would remain the same after the successor assumed responsibility? I can't speak for the various brokers or mutual funds, but in my experience managing grantor trusts for corporate fiduciaries, we didn't change anything other than the name of the trustee and the ID ...
by Gill
Tue Mar 21, 2017 7:52 am
Forum: Personal Finance (Not Investing)
Topic: Using 25-30 year old EE bonds to fund 529
Replies: 12
Views: 996

Re: Using 25-30 year old EE bonds to fund 529

Those 1986 bonds have matured and the interest should be reported on the 2016 return.
Gill
by Gill
Mon Mar 20, 2017 8:43 pm
Forum: Personal Finance (Not Investing)
Topic: Living Trust - Death of grantor/trustee
Replies: 18
Views: 1257

Re: Living Trust - Death of grantor/trustee

There is no change in the ownership of the assets. You simply have a successor trustee and the trust becomes irrevocable. Yes, it very much simplifies the administration of an estate and the trust continues for the beneficiaries.
Gill
by Gill
Sun Mar 19, 2017 7:41 pm
Forum: Investing - Help with Personal Investments
Topic: Valuing Oil Well (Mineral Rights) Investments
Replies: 9
Views: 593

Re: Valuing Oil Well (Mineral Rights) Investments

In valuing these interests for estate tax purposes I was usually advised by our special investments department to value them at twice annual cash flow. This was generally accepted by the IRS.
Gill
by Gill
Sun Mar 19, 2017 2:15 pm
Forum: Personal Consumer Issues
Topic: Do you purposely spend with companies in your investment portfolio?
Replies: 42
Views: 1976

Re: Do you purposely spend on products/services with companies that are in your investment portfolio?

Before bank credit cards became so common, oil companies sent credit cards to their shareholders. My father owned Texaco stock, had a Texaco credit card and never filled his car anywhere but a Texaco station.
Gill
by Gill
Sat Mar 18, 2017 4:17 pm
Forum: Investing - Help with Personal Investments
Topic: Planning if you don't care to leave an estate....
Replies: 32
Views: 2587

Re: Planning if you don't care to leave an estate....

Don't deprive charities of these bequests simply because they look out for their own interests. Don't you want them to be good custodians of the funds they receive? I would not want them "looking out for their own interests" to the extent of unnecessarily tying up the estate for a lengthy...
by Gill
Sat Mar 18, 2017 3:06 pm
Forum: Investing - Help with Personal Investments
Topic: Planning if you don't care to leave an estate....
Replies: 32
Views: 2587

Re: Planning if you don't care to leave an estate....

As for leaving part of an estate to charity, a charity is like anyone else. If you are left a certain percentage of an estate wouldn't you want to make sure the personal representative collected all the assets, paid only proper debts, paid only reasonable administrative expenses, invested the proper...
by Gill
Fri Mar 17, 2017 8:35 pm
Forum: Personal Finance (Not Investing)
Topic: How long to keep previous years Income tax returns????
Replies: 63
Views: 5316

Re: How long to keep previous years Income tax returns????

letsgobobby wrote:It is March 16 2017.

Can I get rid of 2013 and earlier supporting documents? I would always keep the return, the W2s, and any electronic 1099s, but plan to get rid of, especially, records of donations - they take a ton of room.

The Statute hasn't run yet on your 2013 return.
Gill
by Gill
Fri Mar 17, 2017 8:34 pm
Forum: Personal Finance (Not Investing)
Topic: How long to keep previous years Income tax returns????
Replies: 63
Views: 5316

Re: How long to keep previous years Income tax returns????

I have every return I ever filed although I toss the supporting material after six years or so. i have had occasion to go back a number of years for certain information. Can't imagine throwing out old returns.
Gill
by Gill
Fri Mar 17, 2017 8:14 pm
Forum: Personal Consumer Issues
Topic: Driving Savannah to New Orleans
Replies: 17
Views: 939

Re: Driving Savannah to New Orleans

Not much along the way as I remember. I would prefer to go back to I-10. You are only backtracking a short distance.
Gill
by Gill
Fri Mar 17, 2017 6:39 pm
Forum: Investing - Help with Personal Investments
Topic: I-Bonds for a 30s couple?
Replies: 20
Views: 1972

Re: I-Bonds for a 30s couple?

Or they can be used to compliment your long-term bond holdings in a 401k or tIRA (in which case you'd add them to your fixed-income allocation and hold less bonds in 401k/tIRA). Oh, I always thought I could only buy it through TreasuryDirect.gov or tax returns. I don't believe he's saying you can b...
by Gill
Fri Mar 17, 2017 6:27 pm
Forum: Personal Consumer Issues
Topic: Driving Savannah to New Orleans
Replies: 17
Views: 939

Re: Driving Savannah to New Orleans

Easy. Take I-16 out of Savanna to Columbus and follow the Interstates to New Orleans. I assume that answers the question you didn't really ask. :happy
Gill
by Gill
Fri Mar 17, 2017 10:57 am
Forum: Investing - Help with Personal Investments
Topic: Bonds?
Replies: 3
Views: 297

Re: Bonds?

In its most basic sense, a bond is simply evidence of a loan the bondholder makes to an entity, usually a governmental body or a corporation.
Gill
by Gill
Thu Mar 16, 2017 8:32 am
Forum: Investing - Help with Personal Investments
Topic: Church Development Funds?
Replies: 13
Views: 915

Re: Church Development Funds?

I spent a little time on the Website and still can't understand who the obligor is on these certificates or what they are doing with the money. It seems unfortunate that people could be badly burned here while purchasing these obligations out of loyalty to their church. Gill Did you read the offeri...
by Gill
Wed Mar 15, 2017 8:03 pm
Forum: Investing - Help with Personal Investments
Topic: Church Development Funds?
Replies: 13
Views: 915

Re: Church Development Funds?

I spent a little time on the Website and still can't understand who the obligor is on these certificates or what they are doing with the money. It seems unfortunate that people could be badly burned here while purchasing these obligations out of loyalty to their church.
Gill
by Gill
Wed Mar 15, 2017 2:25 pm
Forum: Personal Finance (Not Investing)
Topic: IRA RMDS
Replies: 8
Views: 533

Re: IRA RMDS

...or you can take from any or all of your IRA's as long as you meet the RMD required of the total.
Gill
by Gill
Tue Mar 14, 2017 7:57 pm
Forum: Personal Consumer Issues
Topic: PayPal - Any Disadvantages?
Replies: 28
Views: 2237

Re: PayPal - Any Disadvantages?

My Paypal account was once hacked and I was taken for $14,000, $10,000 from my checking account and $4,000 on a credit card. Had it straightened out by the end of the day but it was rather alarming to discover it early one morning.
Gill
by Gill
Tue Mar 14, 2017 7:50 pm
Forum: Personal Finance (Not Investing)
Topic: Assigning income with two trust beneficiaries
Replies: 10
Views: 444

Re: Assigning income with two trust beneficiaries

Thanks for elaborating on this. Looks like it will be up to Congress to plug the hole. Now, back to the original topic...
Gill
by Gill
Tue Mar 14, 2017 6:57 pm
Forum: Personal Finance (Not Investing)
Topic: Assigning income with two trust beneficiaries
Replies: 10
Views: 444

Re: Assigning income with two trust beneficiaries

There can be no definitive answer other than judging from all the facts and circumstances and previous court decisions and IRS rulings.

As for the Roth, I would think it does violate the doctrine and it may only be a matter of time before the IRS plugs it.

Gill
by Gill
Tue Mar 14, 2017 6:16 pm
Forum: Personal Finance (Not Investing)
Topic: Assigning income with two trust beneficiaries
Replies: 10
Views: 444

Re: Assigning income with two trust beneficiaries

I would think you're running afoul of the step transaction doctrine with your proposal. You certainly would be making the distribution with the understanding a gift would be made. As for alternating years, I was saying you could give all the 2017 income to one and all the 2018 income to the other. N...
by Gill
Tue Mar 14, 2017 5:26 pm
Forum: Personal Finance (Not Investing)
Topic: Assigning income with two trust beneficiaries
Replies: 10
Views: 444

Re: Assigning income with two trust beneficiaries

No, there's no assigning of income. The trustee should pro rate the income between them. Yes, there is "some type of rule". It's called tax law.

You might accomplish your objective by alternating tax years.
Gill
by Gill
Mon Mar 13, 2017 4:45 pm
Forum: Personal Finance (Not Investing)
Topic: Sold House in 2016
Replies: 14
Views: 1076

Re: Sold House in 2016

What a great forum! Thanks for all of your responses. Now, when I meet with my CPA I will the 1996 deed & your answers. There was no will, just the 1996 deed drawn up by an attorney. My mother lived on social security & what the 5 of us chipped in each month. My basic question is do we owe ...
by Gill
Mon Mar 13, 2017 2:34 pm
Forum: Personal Finance (Not Investing)
Topic: Sold House in 2016
Replies: 14
Views: 1076

Re: Sold House in 2016

All of the posts above miss the point. The gift by the mother was with a retained life estate. This caused the value of the property to be included in her estate and thus a new basis at her death. The CPA is saying the sale price of the property is the best indication of the value at her death and t...
by Gill
Mon Mar 13, 2017 1:32 pm
Forum: Personal Finance (Not Investing)
Topic: House deed with heloc
Replies: 8
Views: 384

Re: House deed with heloc

clydewolf wrote:Home Equity Line Of Credit (HELOC)

This line of credit is available for your use. The line of credit is secured by your equity in the home. Read your HELOC contract and you will see the length of the contract, typically 25 years.

Not any more. Typically ten years.
Gill
by Gill
Mon Mar 13, 2017 1:31 pm
Forum: Personal Finance (Not Investing)
Topic: House deed with heloc
Replies: 8
Views: 384

Re: House deed with heloc

sil2017 wrote:Thanks all ,

What should i receive from the credit union when i close my heloc?

As others have answered, you should receive a satisfaction of mortgage when you close either or both of these loans.
Gill
by Gill
Mon Mar 13, 2017 10:49 am
Forum: Personal Finance (Not Investing)
Topic: House deed with heloc
Replies: 8
Views: 384

Re: House deed with heloc

You will receive a satisfaction of mortgage document which will be recorded with your local recorder of deeds. You don't receive a deed to the property - you already have a deed.
Gill
by Gill
Mon Mar 13, 2017 7:38 am
Forum: Personal Finance (Not Investing)
Topic: Is it mandatory to report trust distributions on the 1041?
Replies: 9
Views: 492

Re: Is it mandatory to report trust distributions on the 1041?

You refer to interest being reported to the beneficiary. You do realize that when there is income in the trust it is reported to the beneficiary retaining the same type of income whether dividends, interest, capital gain or whatever? Gill I'm not sure I understand your question. My plan is to look ...
by Gill
Sun Mar 12, 2017 8:52 pm
Forum: Personal Finance (Not Investing)
Topic: Is it mandatory to report trust distributions on the 1041?
Replies: 9
Views: 492

Re: Is it mandatory to report trust distributions on the 1041?

You refer to interest being reported to the beneficiary. You do realize that when there is income in the trust it is reported to the beneficiary retaining the same type of income whether dividends, interest, capital gain or whatever?
Gill
by Gill
Sun Mar 12, 2017 8:43 pm
Forum: Investing - Theory, News & General
Topic: The difference between long-term capital loss and short-term capital loss
Replies: 8
Views: 603

Re: The difference between long-term capital loss and short-term capital loss

It might be helpful to just follow the arithmetic on Schedule D https://www.irs.gov/pub/irs-pdf/f1040sd.pdf Thanks. Now, I have to figure out why I thought there was a difference. KlangFool There was a difference before the law was changed, I believe in 1986. Also, because long term gains are taxed...
by Gill
Sun Mar 12, 2017 8:31 pm
Forum: Personal Finance (Not Investing)
Topic: Is it mandatory to report trust distributions on the 1041?
Replies: 9
Views: 492

Re: Is it mandatory to report trust distributions on the 1041?

I'm a bit confused by your question. I assume this is a complex trust, I.e., one where you can distribute income or accumulate it in the trust. If the trust has $5,000 of income and you distribute $3,000 the beneficiary is taxed on $3,000 and the trust pays tax on $2,000. No need to transfer it to ...
by Gill
Sun Mar 12, 2017 7:51 pm
Forum: Personal Finance (Not Investing)
Topic: Is it mandatory to report trust distributions on the 1041?
Replies: 9
Views: 492

Re: Is it mandatory to report trust distributions on the 1041?

I'm a bit confused by your question. I assume this is a complex trust, I.e., one where you can distribute income or accumulate it in the trust. If the trust has $5,000 of income and you distribute $3,000 the beneficiary is taxed on $3,000 and the trust pays tax on $2,000. No need to transfer it to p...

Go to advanced search