Search found 936 matches

by MarkNYC
Tue Feb 09, 2016 4:43 pm
Forum: Investing - Help with Personal Investments
Topic: Roth conversion and moving to another state (NY)
Replies: 6
Views: 409

Re: Roth conversion and moving to another state (NY)

Keeping the records of the conversion is not a problem. The problem might be how do I prove when I actually moved. I am going to live with a friend for a while so there won't be any lease or something. So let's say I do a conversion on 2/15, but will actually move to NY on 2/20. How can I prove I w...
by MarkNYC
Tue Feb 09, 2016 10:12 am
Forum: Investing - Help with Personal Investments
Topic: Roth conversion and moving to another state (NY)
Replies: 6
Views: 409

Re: Roth conversion and moving to another state (NY)

Hi, I am thinking of converted my IRA to ROTH this year and I will be moving from MD to NY in couple of weeks because of the job change. I think that NY state and NYC taxes are several percent more than in MD , so will it make sense for me to do the conversion before I move? In other words, if I do...
by MarkNYC
Sat Feb 06, 2016 9:52 am
Forum: Personal Finance (Not Investing)
Topic: Tax prep Q - 1st time home purchase
Replies: 18
Views: 1019

Re: Tax prep Q - 1st time home purchase

Is it possible I did not pay/was not charged any points..?? The 1098 says $0 in the points box but I was hopeful I could deduct the Origination Charge (from mortgage lender) listed on HUD-1. Regardless of whether the amount is listed on Form 1098, if the $600 loan origination fee you paid to purcha...
by MarkNYC
Fri Feb 05, 2016 9:08 pm
Forum: Personal Finance (Not Investing)
Topic: Tax prep Q - 1st time home purchase
Replies: 18
Views: 1019

Re: Tax prep Q - 1st time home purchase

The origination fee should be reported to you on the Form 1098 that your mortgage servicer sends you. When you read the instructions for Schedule A, it will tell you what to do with the numbers. Is it possible I did not pay/was not charged any points..?? The 1098 says $0 in the points box but I was...
by MarkNYC
Fri Feb 05, 2016 5:03 pm
Forum: Personal Finance (Not Investing)
Topic: Tax prep Q - 1st time home purchase
Replies: 18
Views: 1019

Re: Tax prep Q - 1st time home purchase

The origination fee should be reported to you on the Form 1098 that your mortgage servicer sends you. When you read the instructions for Schedule A, it will tell you what to do with the numbers. Is it possible I did not pay/was not charged any points..?? The 1098 says $0 in the points box but I was...
by MarkNYC
Fri Feb 05, 2016 2:04 pm
Forum: Personal Finance (Not Investing)
Topic: Do I need to amend 2014 1041?
Replies: 2
Views: 178

Re: Do I need to amend 2014 1041?

I am doing the final 1041 for my father's estate. In 2014 there was no income and his house was the only asset. Upon the advice of both the IRS and CT Department of Revenue Services, I submitted 1041s showing no income. I also didn't take any deductions (maintenance on the house and lawyer fees) th...
by MarkNYC
Wed Feb 03, 2016 4:13 pm
Forum: Personal Finance (Not Investing)
Topic: Tax prep Q - 1st time home purchase
Replies: 18
Views: 1019

Re: Tax prep Q - 1st time home purchase

Another question if anyone can help: when I closed I received a form titled "Settlement Statement (HUD-1)"; at the top of this, my RE attorney wrote "Accountant", which I take means I would need this form/information at tax time. Since I can't deduct closing costs does anyone kn...
by MarkNYC
Tue Feb 02, 2016 4:41 pm
Forum: Personal Finance (Not Investing)
Topic: Real estate taxes on estate for heirs
Replies: 17
Views: 1192

Re: Real estate taxes on estate for heirs

You'll file a fiduciary income tax return (Form 1041) for the trust, showing the gain or loss on the sale (the basis is equal to the date of death value), and claiming a deduction for the estate administration expenses (other than the funeral expenses). Any income, gains, losses and deductions in t...
by MarkNYC
Wed Jan 27, 2016 5:37 pm
Forum: Personal Finance (Not Investing)
Topic: Two-state (MD and VA) income tax question
Replies: 5
Views: 476

Re: Two-state (MD and VA) income tax question

You should file a Maryland nonresident income tax return. Show nothing in the column for Maryland-source income, but list the tax withheld on line 43. On page one of the Form 505 you should check the box "Maryland tax withheld in error." MD will understand that pension income is not taxabl...
by MarkNYC
Wed Jan 27, 2016 4:18 pm
Forum: Personal Finance (Not Investing)
Topic: Tax return for married couple in different states
Replies: 1
Views: 165

Re: Tax return for married couple in different states

For couples filing a joint federal return, most states will allow spouses to file separate state returns if their state residencies were different during the year. Assuming the states involved allow it, I suggest filing separate state returns. Your spouse files a full-year resident return for state ...
by MarkNYC
Wed Jan 27, 2016 11:26 am
Forum: Personal Finance (Not Investing)
Topic: NJ tax question regarding ROTH withdrawal
Replies: 14
Views: 949

Re: NJ tax question regarding ROTH withdrawal

Not a tax person, but I think there may be a misunderstanding here about what’s considered a taxable distribution . According to the following, I don’t think withdrawals of your contributions are reported at all -- because they are not "distributions" New Jersey says “…The New Jersey inco...
by MarkNYC
Wed Jan 13, 2016 12:39 pm
Forum: Personal Finance (Not Investing)
Topic: Offer in Compromise (tips? pitfalls?)
Replies: 7
Views: 1021

Re: Offer in Compromise (tips? pitfalls?)

One issue to consider. If she is under age 59 1/2 and she voluntarily liquidates her IRA to satisfy the compromise amount, the 10% early distribution penalty will apply. However, if the IRS issues a levy against the IRA account to obtain the funds, that would be an exception to the 10% penalty. You ...
by MarkNYC
Wed Jan 13, 2016 12:00 pm
Forum: Personal Finance (Not Investing)
Topic: Parent Help: Filing Taxes - Music Royalties as Alimony
Replies: 6
Views: 583

Re: Parent Help: Filing Taxes - Music Royalties as Alimony

Proper tax treatment of any payments received from the former spouse would require a careful reading of the language in the divorce agreement. It might be advisable to consult with a tax professional for the preparation of the income tax return.
by MarkNYC
Mon Jan 11, 2016 10:54 am
Forum: Personal Finance (Not Investing)
Topic: Can I pay estimated tax ONLY in January?
Replies: 26
Views: 2594

Re: Can I pay estimated tax ONLY in January?

In the OP's case, the amount is insignificant. But if someone is planning to mail a large tax payment on the due date, they should be aware that mailing the payment just one day late will result in much more than one day's interest on the late payment. Do you know how the penalty would be assessed ...
by MarkNYC
Sun Jan 10, 2016 7:43 pm
Forum: Personal Finance (Not Investing)
Topic: Can I pay estimated tax ONLY in January?
Replies: 26
Views: 2594

Re: Can I pay estimated tax ONLY in January?

In you're case there is nothing magical about Jan 15. The NY penalty is simple interest calculated at 7.5% per year. If you make a $400 payment on Jan 16th rather than Jan 15 it will cost you at most $0.08. $0.08 would be one day's interest, but that's not how the calculation works. When mailing a ...
by MarkNYC
Thu Jan 07, 2016 1:58 pm
Forum: Personal Consumer Issues
Topic: Jackpot Now Estimated $700 Million, who's in?
Replies: 149
Views: 5696

Re: Jackpot Now Estimated $700 Million, who's in?

Here's something that puzzles me. Many people have no interest in buying a lottery ticket when the prize is "only" around $200 million, but become very interested when the prize gets up above, say $400 or $500 million. Is the chance of winning $200 million simply not enticing enough, not e...
by MarkNYC
Wed Jan 06, 2016 8:13 pm
Forum: Investing - Help with Personal Investments
Topic: Inherited IRA
Replies: 20
Views: 1060

Re: Inherited IRA

How do you calculate RMDs? I looked into Vanguard's RMD service, but after a cursory glance at the site, it seemed like it was only applicable to people in retirement, not for inherited IRAs? Call VG and ask for the Retirement Dept, they'll help you calculate. Pretty sure its 800 205 6189, else mai...
by MarkNYC
Tue Jan 05, 2016 11:00 am
Forum: Investing - Theory, News & General
Topic: At what age did you stop reinvesting dividends?
Replies: 45
Views: 4403

Re: At what age did you stop reinvesting dividends?

Am retired/66 and still reinvest everything. When I need cash I just sell shares, it's six of one and half-dozen of the other. For tax purposes, it will make a difference for many retired people whether or not they reinvest. Here's an example: You have a taxable stock fund worth $500K, from which y...
by MarkNYC
Wed Dec 30, 2015 2:26 pm
Forum: Personal Finance (Not Investing)
Topic: Capital Loss Carryover and Marriage
Replies: 11
Views: 558

Re: Capital Loss Carryover and Marriage

In the year of marriage, the couple can combine the capital loss carryovers from each individual's prior year return. In the year when one spouse dies, the capital losses that can be carried over to the surviving spouse's return the next year are limited to the prior losses that actually belonged to...
by MarkNYC
Wed Dec 30, 2015 2:10 pm
Forum: Personal Finance (Not Investing)
Topic: Capital Loss Carryover and Marriage
Replies: 11
Views: 558

Re: Capital Loss Carryover and Marriage

I read this: Capital Gains and Losses If you have capital gains that are subject to taxes in the year that you get married , and your spouse has capital losses for the year, the losses of one spouse can offset the gains of the other. Normally, the deduction limit in any year for capital losses is $...
by MarkNYC
Wed Dec 23, 2015 1:28 pm
Forum: Personal Finance (Not Investing)
Topic: Filing status with nonresident alien spouse
Replies: 3
Views: 347

Re: Filing status with nonresident alien spouse

When one spouse is a US resident and the other is a nonresident alien, they are not permitted to file a joint tax return unless a Sec 6013(g) election is made to treat the nonresident alien as a US resident. The election is made by attaching a statement to the jointly-filed return and the election r...
by MarkNYC
Sat Dec 19, 2015 9:16 am
Forum: Personal Finance (Not Investing)
Topic: Side Hustle, how to account for ?
Replies: 22
Views: 1730

Re: Side Hustle, how to account for ?

LLC stands for Limited Liability Corporation. Unless you are engaging in an activity where you could be sued for your actions I don't see the point. This is a common misconception. There is a reason that it is call a Limited Liability Corporation. An LLC provides limited liability protection for ac...
by MarkNYC
Fri Dec 18, 2015 8:56 pm
Forum: Personal Finance (Not Investing)
Topic: Side Hustle, how to account for ?
Replies: 22
Views: 1730

Re: Side Hustle, how to account for ?

LLC stands for Limited Liability Corporation. Unless you are engaging in an activity where you could be sued for your actions I don't see the point. This is a common misconception. There is a reason that it is call a Limited Liability Corporation. An LLC provides limited liability protection for ac...
by MarkNYC
Thu Dec 17, 2015 1:36 pm
Forum: Personal Finance (Not Investing)
Topic: Schedule C - How to report income and expenses
Replies: 25
Views: 1177

Re: Schedule C - How to report income and expenses

Constructive receipt. Income is constructively received when an amount is credited to your account or made available to you without restriction. You need not have possession of it. If you authorize someone to be your agent and receive income for you, you are considered to have received it when your...
by MarkNYC
Wed Dec 16, 2015 5:14 pm
Forum: Personal Finance (Not Investing)
Topic: Schedule C - How to report income and expenses
Replies: 25
Views: 1177

Re: Schedule C - How to report income and expenses

I see it differently. I think you have gross income $965, no expense deduction. The $1,000 invoice does not determine your income. Your income is the amount you actually receive. You are essentially discounting the $1,000 invoice by the amount of the transaction fee incurred by the customer. Actual...
by MarkNYC
Wed Dec 16, 2015 3:40 pm
Forum: Personal Finance (Not Investing)
Topic: Schedule C - How to report income and expenses
Replies: 25
Views: 1177

Re: Schedule C - How to report income and expenses

I see it differently. I think you have gross income $965, no expense deduction. The $1,000 invoice does not determine your income. Your income is the amount you actually receive. You are essentially discounting the $1,000 invoice by the amount of the transaction fee incurred by the customer. Actual ...
by MarkNYC
Mon Dec 14, 2015 10:51 pm
Forum: Personal Finance (Not Investing)
Topic: another excess Roth contribution thread
Replies: 2
Views: 297

Re: another excess Roth contribution thread

Since you made a $321 excess contribution, you cannot both keep the money invested and avoid a penalty. You have two reasonable options: 1. Request a distribution of the $321 excess. Since there is loss associated with the $321, the distribution will be less - let's say $300. You will receive a 2015...
by MarkNYC
Thu Dec 10, 2015 5:16 pm
Forum: Personal Finance (Not Investing)
Topic: Small Business Gave me a "Retirement Bonus" Untaxed. What should I do?
Replies: 66
Views: 5419

Re: Small Business Gave me a "Retirement Bonus" Untaxed. What should I do?

Any way to deal with this issue without any controversy? ... I certainly don't want to get the company in any trouble but also don't want to create any potential issues for me later on down the road. The best way to report the $5K income without any controversy is to report the income on Schedule C...
by MarkNYC
Wed Dec 09, 2015 4:58 pm
Forum: Personal Consumer Issues
Topic: IRS IP PIN: Pros & Cons?
Replies: 17
Views: 1625

Re: IRS IP PIN: Pros & Cons?

I think you should apply for the IP PIN. I believe the inconvenience of obtaining and using an IRS IP PIN is preferable to the anxiety and inconvenience of having to deal with a fraudulent tax return filed under your social security number.
by MarkNYC
Fri Dec 04, 2015 2:03 pm
Forum: Investing - Theory, News & General
Topic: Fairholme (FAIRX) warning
Replies: 44
Views: 3863

Re: Fairholme (FAIRX) warning

I own YACKT in Roth. The old man has stepped back and the son is in charge...but it's been too good to me to abandon now. I'll let them have another bear market before I think about dropping them. This is a significant problem we face when we invest in actively managed funds. We never sell the fund...
by MarkNYC
Wed Nov 25, 2015 8:16 pm
Forum: Investing - Help with Personal Investments
Topic: Early Withdraw Rules for Backdoor Roth IRA
Replies: 19
Views: 1386

Re: Early Withdraw Rules for Backdoor Roth IRA

If you did a backdoor contribution and then the traditional IRA contribution became deductible (for example, because you expected to be covered by a retirement plan later in the year but weren't, or because your spouse is covered by a retirement plan and you were unexpectedly under the income limit...
by MarkNYC
Sat Nov 21, 2015 11:21 am
Forum: Personal Finance (Not Investing)
Topic: Is W-2 the sole requirement of buying a Roth
Replies: 16
Views: 1183

Re: Is W-2 the sole requirement of buying a Roth

As a matter of administrative convenience, the IRS will accept an IRA contribution based on W-2 wages to the extent the amount in box 1 of the W-2 exceeds the amount in box 11 (nonqualified plan distributions). See Rev Proc. 91-18, 1991-1.
by MarkNYC
Tue Nov 03, 2015 2:46 pm
Forum: Personal Finance (Not Investing)
Topic: Will beneficiary puzzle
Replies: 30
Views: 2637

Re: Will beneficiary puzzle

I am not a lawyer, and I agree you should probably use one, since there may be other issues you're not considering. However, let's say you want to give $10K in total to Beneficiary A. Each will could state: I give $5k to Beneficiary A and the remainder to my spouse. If my spouse is not alive at my d...
by MarkNYC
Tue Nov 03, 2015 1:48 pm
Forum: Personal Finance (Not Investing)
Topic: Should real estate income be taxed as capital gains or income?
Replies: 17
Views: 1260

Re: Should real estate income be taxed as capital gains or income?

Is this your only job? If so, it sounds like you are a real estate professional and could do a solo 401k If the taxpayer's activity with the rental properties was sufficient to qualify for real estate professional status, that would change the rental income from passive to nonpassive, so that the p...
by MarkNYC
Sun Nov 01, 2015 11:23 pm
Forum: Personal Finance (Not Investing)
Topic: Too many trips to Goodwill this year
Replies: 51
Views: 6161

Re: Too many trips to Goodwill this year

jlawrence01 wrote:Second, the $5,000 requirement for an appraisal is only required if you make one large contribution that exceeds that amount.

Not true. It is $5,000 per item or group of similar items, even if the items in the group are donated to different organizations. See instructions to Form 8283.
by MarkNYC
Sun Nov 01, 2015 8:56 pm
Forum: Personal Finance (Not Investing)
Topic: Too many trips to Goodwill this year
Replies: 51
Views: 6161

Re: Too many trips to Goodwill this year

If the charitable deduction for any one item or group of similar items exceeds $5,000 then an appraisal is required. So a deduction that exceeds $5,000 for donation(s) of clothing, or for books, or for furniture would each require an appraisal. If an appraisal is required and not obtained, the deduc...
by MarkNYC
Fri Oct 30, 2015 8:33 am
Forum: Investing - Help with Personal Investments
Topic: Back door Roth conversion - Tax / CPA Question
Replies: 15
Views: 963

Re: Back door Roth conversion - Tax / CPA Question

I'm surprised any software would allow an entry on 15b with no entry on 15a. Perhaps it was hand prepared or the software overridden. When lines 15a and 15b are the same number, the software should leave line 15a blank. Same for line 16. This is consistent with the Form 1040 instructions for those ...
by MarkNYC
Wed Oct 28, 2015 12:44 pm
Forum: Investing - Theory, News & General
Topic: "Financial Advice Is Improving Across the Board"
Replies: 8
Views: 1715

Re: "Financial Advice Is Improving Across the Board"

Rekenthaler is a smart and good guy But I disagree with this statement, it just isn't true "Asset-based fees encourage financial advisors to trade, so as to justify their ongoing charges." In fact it's commissioned based that does that... We are AUM based as are many such as Rick Ferri an...
by MarkNYC
Mon Oct 26, 2015 6:14 pm
Forum: Personal Finance (Not Investing)
Topic: Tax benefit home buying
Replies: 15
Views: 1729

Re: Tax benefit home buying

In the first year, your interest would be 4% of the $725,000 balance, which is $29,000. (I am assuming no points; any points would normally be deducted in the first year). This will decrease slowly over time; most of the early payments go to interest, not principal. If you are in the 25% federal ta...
by MarkNYC
Thu Oct 22, 2015 2:27 pm
Forum: Personal Finance (Not Investing)
Topic: Mailing tax returns
Replies: 93
Views: 7272

Re: Mailing tax returns

I disagree completely. Saving the $1.40 or $2.80 is being penny wise and pound foolish - to the extreme. What does the return receipt get you? Hint: Certified mail is $6.60. With this you get a little white receipt which the IRS considers proof of mailing. Certified mail with return receipt post ca...
by MarkNYC
Thu Oct 22, 2015 12:17 pm
Forum: Personal Finance (Not Investing)
Topic: My mom is 80 year old and she has never taken out the RMD, please help!
Replies: 61
Views: 7746

Re: My mom is 80 year old and she has never taken out the RMD, please help!

This is an issue that comes up often: what should a taxpayer do upon discovery of untaken RMDs for one or more prior years? It's risky to disagree with Alan S. and Natalie Choate on an IRA issue, but I'm going to argue that filing Form 5329 for earlier years is not a requirement for getting the 50% ...
by MarkNYC
Wed Oct 21, 2015 3:06 pm
Forum: Personal Finance (Not Investing)
Topic: My mom is 80 year old and she has never taken out the RMD, please help!
Replies: 61
Views: 7746

Re: My mom is 80 year old and she has never taken out the RMD, please help!

The IRA custodian should not issue minimum distributions unless requested by the IRA owner. Otherwise, if the individual had IRA accounts at 3 fund companies, and chose to take the full RMD from custodian one, then custodians 2 and 3 would distribute additional RMD amounts that were not required or ...
by MarkNYC
Tue Oct 20, 2015 7:57 pm
Forum: Investing - Help with Personal Investments
Topic: Penalty for under withholding income tax
Replies: 11
Views: 1383

Re: Penalty for under withholding income tax

Andy, Your strategy will work, as long as the IRA custodian will withhold 100% on the IRA distribution, which they should. The IRS actually lays out a schedule for estimated tax payments... Unlike the IRS of decades ago, the current IRS uses more reasonable late fees. The underpayment penalty calcul...
by MarkNYC
Tue Sep 29, 2015 8:23 am
Forum: Personal Finance (Not Investing)
Topic: Real estate capital gains question
Replies: 24
Views: 2153

Re: Real estate capital gains question

^ thanks Marknyc. So if one rents out a property for ten years and then moves in for two years and then sells it, one would pay capital gains tax on 10/12 of the appreciation in the twelve years since purchase? And vice versa.... live in a property for two years, then rent it out for ten years and ...
by MarkNYC
Tue Sep 29, 2015 8:20 am
Forum: Personal Finance (Not Investing)
Topic: Real estate capital gains question
Replies: 24
Views: 2153

Re: Real estate capital gains question

^ thanks Marknyc. So if one rents out a property for ten years and then moves in for two years and then sells it, one would pay capital gains tax on 10/12 of the appreciation in the twelve years since purchase? Yes, assuming the rental started after 1/1/09, when the law took effect. Periods prior t...
by MarkNYC
Mon Sep 28, 2015 12:30 pm
Forum: Personal Finance (Not Investing)
Topic: Real estate capital gains question
Replies: 24
Views: 2153

Re: Real estate capital gains question

^ that was my simplistic understanding as well. I wonder if Marknyc can clarify because the opposite of it is never how I had looked at it.... that living in it for 2 years then renting for 2 years was better tax wise than renting for 2 years and then living in it for 2 years and then selling. It w...
by MarkNYC
Mon Sep 28, 2015 11:48 am
Forum: Personal Finance (Not Investing)
Topic: Got Married. Selling Both homes to start fresh. Claim Cap. Gains exemption on both?
Replies: 5
Views: 806

Re: Got Married. Selling Both homes to start fresh. Claim Cap. Gains exemption on both?

Just got married, both of us own a home and are currently in the process of selling them. We stand to make money off of both but well less than the max $250k each for the exemption. We have each lived in our respective homes for 3+ years. This may be a situation where it makes a lot of sense to fil...

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