Search found 931 matches

by gilgamesh
Wed Jan 17, 2018 6:27 pm
Forum: Personal Finance (Not Investing)
Topic: Confusion about prepaying property taxes
Replies: 122
Views: 11873

Re: Confusion about prepaying property taxes

Our property taxes are accessed for Jan-June and July to Dec of the same year. But billed the following year. So, for 2016 property taxes (both Jan-June and July-Dec), I get an invoice in early part of 2017. Which I pay in 2017 and deduct in my 2017 taxes. However, when I looked in December they ha...
by gilgamesh
Tue Jan 16, 2018 5:08 pm
Forum: Personal Finance (Not Investing)
Topic: Confusion about prepaying property taxes
Replies: 122
Views: 11873

Re: Confusion about prepaying property taxes

I'm in Summit County, Ohio and prepaid before the new year. I called the Fiscal Office this past week, and asked when the tax is "assessed" and they said it was indeed assessed last year. We are taxed in arrears, so I did pay taxes for 2017, not 2018 - however they don't bill for the 2017 taxes unt...
by gilgamesh
Tue Jan 16, 2018 3:02 pm
Forum: Personal Finance (Not Investing)
Topic: Confusion about prepaying property taxes
Replies: 122
Views: 11873

Re: Confusion about prepaying property taxes

I'm in Summit County, Ohio and prepaid before the new year. I called the Fiscal Office this past week, and asked when the tax is "assessed" and they said it was indeed assessed last year. We are taxed in arrears, so I did pay taxes for 2017, not 2018 - however they don't bill for the 2017 taxes unt...
by gilgamesh
Mon Jan 15, 2018 7:44 pm
Forum: Personal Finance (Not Investing)
Topic: [Pass-Thru Entities Questions Thread]
Replies: 124
Views: 8109

Re: [Pass-Thru Entities Questions Thread]

that quote is from the article I linked to near the top of this page 3 https://evergreensmallbusiness.com/pass-thru-income-deduction-dozen-things-every-business-owner-must-know/ Thank you, that's a solid source. It didn't matter to me much, so I never realized that...but it is puzzling. If it turns...
by gilgamesh
Sun Jan 14, 2018 5:44 pm
Forum: Personal Finance (Not Investing)
Topic: [Pass-Thru Entities Questions Thread]
Replies: 124
Views: 8109

Re: [Pass-Thru Entities Questions Thread]

Yes, I should make a spreadsheet. Where I get confused is when adding ordinary income shifts my qualified dividends from 0% to 15%. My income is largely dividends. This doesn't seem to be consistent with your previous reply of 0 taxable income. You will only go from 0% to 15% if you jump beyond 201...
by gilgamesh
Sun Jan 14, 2018 4:50 pm
Forum: Investing - Theory, News & General
Topic: Jan 2018 TIPS Auction
Replies: 11
Views: 1072

Re: Jan 2018 TIPS Auction

The 10-year break even inflation rate has been inching up and is indeed at 2% recently

https://fred.stlouisfed.org/series/T10YIE
by gilgamesh
Sun Jan 14, 2018 4:41 pm
Forum: Personal Finance (Not Investing)
Topic: [Pass-Thru Entities Questions Thread]
Replies: 124
Views: 8109

Re: [Pass-Thru Entities Questions Thread]

There are two calculators I found https://www.calcxml.com/calculators/trump-tax-reform-calculator?skn=#results I think that one does the pass-through but does not know how to do the phase-out for service businesses. This is a more generic one http://taxplancalculator.com My advice is to do your own...
by gilgamesh
Sun Jan 14, 2018 3:22 pm
Forum: Personal Finance (Not Investing)
Topic: [Pass-Thru Entities Questions Thread]
Replies: 124
Views: 8109

Re: [Pass-Thru Entities Questions Thread]

There are two calculators I found https://www.calcxml.com/calculators/trump-tax-reform-calculator?skn=#results I think that one does the pass-through but does not know how to do the phase-out for service businesses. This is a more generic one http://taxplancalculator.com My advice is to do your own...
by gilgamesh
Sun Jan 14, 2018 3:17 pm
Forum: Personal Finance (Not Investing)
Topic: [Pass-Thru Entities Questions Thread]
Replies: 124
Views: 8109

Re: [Pass-Thru Entities Questions Thread]

Seems like I may need to generate income (via Roth conversion) due to the taxable income limit. Does anyone know of an online calculator that handles Section 199A to help with decisions on generating income? Could you explain how Roth conversion increasing your taxable incomes' going to help you wi...
by gilgamesh
Sun Jan 14, 2018 2:46 pm
Forum: Personal Finance (Not Investing)
Topic: [Pass-Thru Entities Questions Thread]
Replies: 124
Views: 8109

Re: [Pass-Thru Entities Questions Thread]

Here is the follow up to that Forbes article, which talks about the entity type quagmire https://www.forbes.com/sites/anthonynitti/2018/01/04/the-new-qualified-business-income-deduction-varies-based-on-your-business-type-or-does-it/#13fc5ca72076 Thanks, I had just found that article earlier. Very i...
by gilgamesh
Sun Jan 14, 2018 2:46 pm
Forum: Personal Finance (Not Investing)
Topic: [Pass-Thru Entities Questions Thread]
Replies: 124
Views: 8109

Re: [Pass-Thru Entities Questions Thread]

Seems like I may need to generate income (via Roth conversion) due to the taxable income limit. Does anyone know of an online calculator that handles Section 199A to help with decisions on generating income? Could you explain how Roth conversion increasing your taxable incomes' going to help you wi...
by gilgamesh
Sun Jan 14, 2018 8:55 am
Forum: Personal Finance (Not Investing)
Topic: New Tax Plan - How to make the most of it?
Replies: 43
Views: 4502

Re: New Tax Plan - How to make the most of it?

Retirement accounts DEFER taxes...I save taxes now and pay taxes in retirement. The current tax cuts for individuals and small businesses are set to expire on 2026. If it expires, I'm deferring 19.2% marginal tax bracket but could face higher tax bracket in retirement. Especially given the weaker i...
by gilgamesh
Sat Jan 13, 2018 8:16 pm
Forum: Personal Finance (Not Investing)
Topic: [Pass-Thru Entities Questions Thread]
Replies: 124
Views: 8109

Re: [Pass-Thru Entities Questions Thread]

Here is the follow up to that Forbes article, which talks about the entity type quagmire

https://www.forbes.com/sites/anthonynit ... fc5ca72076
by gilgamesh
Sat Jan 13, 2018 8:15 pm
Forum: Personal Finance (Not Investing)
Topic: [Pass-Thru Entities Questions Thread]
Replies: 124
Views: 8109

Re: [Pass-Thru Entities Questions Thread]

Thanks for the clarifications. So it appears that income we would have from other sources – such as interest and dividends or withdrawals from our 401k (when we get to 59.5) – would also affect this balancing act of which is the "lesser" amount. Precisely!...it's taxable income from ALL sources, no...
by gilgamesh
Sat Jan 13, 2018 4:25 pm
Forum: Personal Finance (Not Investing)
Topic: [Pass-Thru Entities Questions Thread]
Replies: 124
Views: 8109

Re: [Pass-Thru Entities Questions Thread]

[bump] Does anyone have any insight into the above? I'm beginning to think that this rule applies to S Corp owners only, but it does say "applies to every taxpayer". The 199A only applies to pass-thru small businesses - not every tax payer. But, the lesser of the QBI or taxable income applies to al...
by gilgamesh
Sat Jan 13, 2018 4:22 pm
Forum: Personal Finance (Not Investing)
Topic: [Pass-Thru Entities Questions Thread]
Replies: 124
Views: 8109

Re: [Pass-Thru Entities Questions Thread]

Someone earlier linked to this article on Evergreen Small Business (https://evergreensmallbusiness.com/pass-thru-income-deduction-dozen-things-every-business-owner-must-know/) I refer to their "Thing #5": Thing #5: Taxable Income Usually Limits Actual Deduction A first limitation that applies to ev...
by gilgamesh
Fri Jan 12, 2018 11:31 pm
Forum: Personal Finance (Not Investing)
Topic: New Tax Plan - How to make the most of it?
Replies: 43
Views: 4502

Re: New Tax Plan - How to make the most of it?

I know. But I mean, part of the reason I'm max-ing the retirement contributions is to save tax. In 2017, if I don't make any contributions to retirements, I'm in the 28% bracket and pay $28.3k tax. When I max the contributions, I bring myself from 28% to 25% bracket and pay $17.5k tax. I save $10.8...
by gilgamesh
Fri Jan 12, 2018 10:21 pm
Forum: Personal Finance (Not Investing)
Topic: Credit card keeps getting hacked, even when unused! (4x now!)
Replies: 49
Views: 7790

Re: Credit card keeps getting hacked, even when unused! (4x now!)

Hector wrote:
Wed Mar 09, 2016 8:14 pm
Similar happened to me.
A particular card of mine was compromised and financial institute sent me new one. And new was got compromised while it was on the mail.
Whoa! I would have thought this is impossible...unfrickingbelievable...good info!
by gilgamesh
Fri Jan 12, 2018 10:17 pm
Forum: Personal Finance (Not Investing)
Topic: New Tax Plan - How to make the most of it?
Replies: 43
Views: 4502

Re: New Tax Plan - How to make the most of it?

I know. But I mean, part of the reason I'm max-ing the retirement contributions is to save tax. In 2017, if I don't make any contributions to retirements, I'm in the 28% bracket and pay $28.3k tax. When I max the contributions, I bring myself from 28% to 25% bracket and pay $17.5k tax. I save $10.8...
by gilgamesh
Fri Jan 12, 2018 9:18 pm
Forum: Personal Finance (Not Investing)
Topic: New Tax Plan - How to make the most of it?
Replies: 43
Views: 4502

Re: New Tax Plan - How to make the most of it?

I know. But I mean, part of the reason I'm max-ing the retirement contributions is to save tax. In 2017, if I don't make any contributions to retirements, I'm in the 28% bracket and pay $28.3k tax. When I max the contributions, I bring myself from 28% to 25% bracket and pay $17.5k tax. I save $10.8...
by gilgamesh
Fri Jan 12, 2018 9:16 pm
Forum: Personal Finance (Not Investing)
Topic: New Tax Plan - How to make the most of it?
Replies: 43
Views: 4502

Re: New Tax Plan - How to make the most of it?

I know. But I mean, part of the reason I'm max-ing the retirement contributions is to save tax. In 2017, if I don't make any contributions to retirements, I'm in the 28% bracket and pay $28.3k tax. When I max the contributions, I bring myself from 28% to 25% bracket and pay $17.5k tax. I save $10.8...
by gilgamesh
Thu Jan 11, 2018 7:26 am
Forum: Investing - Help with Personal Investments
Topic: Can I do Backdoor roth years later?
Replies: 12
Views: 1448

Re: Can I do Backdoor roth years later?

The second table at this link: https://www.bogleheads.org/wiki/Non-deductible_traditional_IRA shows that a taxable account can be better than a non-deductible IRA. But you would need to look at the particulars for your situation. With an IRA (and 401k) you will be paying income tax rates on capital...
by gilgamesh
Thu Jan 11, 2018 7:03 am
Forum: Investing - Help with Personal Investments
Topic: Can I do Backdoor roth years later?
Replies: 12
Views: 1448

Re: Can I do Backdoor roth years later?

I am converting non-deductible tIRA , which will result in no extra taxes...that is backdoor Roth, no? By itself, converting a traditional IRA to a Roth (whether or not the traditional IRA and non-deductible contributions) is not a backdoor Roth. A backdoor Roth is a way of making a contribution to...
by gilgamesh
Wed Jan 10, 2018 12:41 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth Mess
Replies: 7
Views: 809

Re: Backdoor Roth Mess

May be I am misunderstanding your question...couldn't you roll over your current Vanguard IRA into Schwab and that way it becomes a rollover IRA. Then you move it into the 401k?...the way I am understanding it, it's just a silly rule.
by gilgamesh
Wed Jan 10, 2018 11:26 am
Forum: Personal Finance (Not Investing)
Topic: Retirement accounts and physician SCorps and Tax Reform
Replies: 48
Views: 3413

Re: Retirement accounts and physician SCorps and Tax Reform

What's frustrating about how different entities are treated to me is how it could be changed a few years later, yet once an S-corp election is revoked one has to wait five years to wait to re-elect S- corp taxation. So, one could figure it all out now and then find themselves in an disadvantageous s...
by gilgamesh
Wed Jan 10, 2018 8:27 am
Forum: Personal Finance (Not Investing)
Topic: Retirement accounts and physician SCorps and Tax Reform
Replies: 48
Views: 3413

Re: Retirement accounts and physician SCorps and Tax Reform

Forbes article on pass though deduction. Maybe Congress screwed up describing what they meant with w2 and QBI. Otherwise we may switching my single member llc status from s corp to disregarded sole prop. The New 'Qualified Business Income Deduction' Varies Based On Your Business Type - Or Does It? ...
by gilgamesh
Tue Jan 09, 2018 7:43 pm
Forum: Investing - Help with Personal Investments
Topic: Can I do Backdoor roth years later?
Replies: 12
Views: 1448

Re: Can I do Backdoor roth years later?

Some people may quibble whether it's a true "backdoor Roth" but if it's not the thing itself it's close kin. Call be a quibbler, but a "Backdoor Roth" is a way to contribute to a Roth IRA when one cannot directly contribute due to having income greater than the limit for contributing to a Roth IRA....
by gilgamesh
Tue Jan 09, 2018 9:27 am
Forum: Investing - Help with Personal Investments
Topic: Help with giving inheritance money to mother
Replies: 16
Views: 1730

Re: Help with giving inheritance money to mother

Money is fungible. If you give money to your mother in some restricted way or even pay some of her bills directly, it will free up her own money so that more of it is available to give to your brother. You would indirectly be giving money to your brother, in a way. Sticky situation there. If you bu...
by gilgamesh
Mon Jan 08, 2018 9:01 pm
Forum: Investing - Help with Personal Investments
Topic: Can I do Backdoor roth years later?
Replies: 12
Views: 1448

Re: Can I do Backdoor roth years later?

You can do what you suggest. It sounds like a reasonable plan to me. OTOH it is planning 7 years a head and a lot could change, so pay a certain amount of attention and be prepared to adjust course. Some people may quibble whether it's a true "backdoor Roth" but if it's not the thing itself it's cl...
by gilgamesh
Mon Jan 08, 2018 5:42 pm
Forum: Investing - Help with Personal Investments
Topic: Can I do Backdoor roth years later?
Replies: 12
Views: 1448

Can I do Backdoor roth years later?

I own my own business, and currently offer a simple IRA...a few years later I will offer a 401k. Currently I am doing non-deductible IRA. Say 7 years later, I am planning to start a 401k and rollover all my IRA except the non-deductible IRA (as reflected in my form 8606) into the 401k. Then the amou...
by gilgamesh
Sat Jan 06, 2018 8:56 pm
Forum: Investing - Help with Personal Investments
Topic: Is now not a good time to start investing?
Replies: 36
Views: 2721

Re: Is now not a good time to start investing?

Make a long-term plan. Execute that plan faithfully over the course of time. Pay no attention to short-term market movements, because you're investing for the long-term. Please don't focus on posts such as the one you linked in your original post. That poster admits that they've worked themselves i...
by gilgamesh
Sat Jan 06, 2018 8:55 pm
Forum: Investing - Help with Personal Investments
Topic: Is now not a good time to start investing?
Replies: 36
Views: 2721

Re: Is now not a good time to start investing?

I used to have all my money in checking accounts. Just a few days ago I finally decided to start investing ( see thread here ). By now, I have about 40% of my money in a 4 fund portfolio (69/31 split, I am 31): - 49% Vanguard Total Stock Market Index Fund (VTI) - 20% Vanguard Total International St...
by gilgamesh
Sat Jan 06, 2018 8:01 pm
Forum: Investing - Theory, News & General
Topic: Retire on dividends & pay taxes with principal?
Replies: 10
Views: 1258

Re: Retire on dividends & pay taxes with principal?

The division of withdrawal across spending dividends and "invading" principle is a flawed concept that leads to bad thinking. I would discard this whole line of thinking. But this flawed concept is advocated by so many that I'm afraid yours and my caution will just fall on deaf ears... but I agree ...
by gilgamesh
Sun Dec 31, 2017 11:37 am
Forum: Investing - Theory, News & General
Topic: 2018 401k
Replies: 8
Views: 1407

Re: 2018 401k

Only one thing changed with the new bill that impacts this decision ...many may have drastically lower marginal tax rate now and if it elapses (with the less generous inflation adjustment) a higher average tax rate than it was in 2017. Everything else, including Roth conversion etc. is the same... I...
by gilgamesh
Sat Dec 30, 2017 10:38 pm
Forum: Personal Finance (Not Investing)
Topic: Should those who prepaid property tax, get a refund?
Replies: 5
Views: 793

Re: Should those who prepaid property tax, get a refund?

Did the assessment have a date on it? The assessment you found online is probably the 2017 assessment which was used to create this years tax bill. As the lady implied, your property will be reassessed in 2018 and that will be the basis of you tax bill for 2018. Just because you see an assessment o...
by gilgamesh
Sat Dec 30, 2017 9:54 pm
Forum: Personal Finance (Not Investing)
Topic: Should those who prepaid property tax, get a refund?
Replies: 5
Views: 793

Re: Should those who prepaid property tax, get a refund?

Ok! I called my county treasurer's office after the recent IRS announcement, the lady on the phone sounded irate (assume she has been receiving many phone calls) and said they will not do an assessement within a day. So, I assumed it was not done. I didn't want to get any further details given her t...
by gilgamesh
Sat Dec 30, 2017 7:58 pm
Forum: Investing - Theory, News & General
Topic: 2018 401k
Replies: 8
Views: 1407

Re: 2018 401k

With the new tax law with lowered rates, combined with the fact it is temporary, I think this needs to be reevaluated. Especially with the 20% small business deduction for professionals' with taxable income of less than $315k (MFJ, phased out over $100k). With the 199A tax deduction marginal tax rat...
by gilgamesh
Sat Dec 30, 2017 2:38 pm
Forum: Personal Finance (Not Investing)
Topic: Should those who prepaid property tax, get a refund?
Replies: 5
Views: 793

Should those who prepaid property tax, get a refund?

I did not find an answer to this ... I prepaid my property taxes, but as it was done prior to assessement it cannot be deducted in 2017 tax return. However, I could use parts of it for 2018...but the check cleared in 2017 without an assessement.I will get an assessment in 2018 but check paid in 2017...
by gilgamesh
Sat Dec 30, 2017 2:33 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 and Tax Reform

I surrender. Lol!...I don't know anything about LLC , S-corp, ABC, CNN, FOX...it's all Greek to me... However if random guy says "There are stand alone s-corps." and my CPA quote said " There is a misconception floating around out there that an S-Corp is a standalone entity. Not true"....one or the...
by gilgamesh
Sat Dec 30, 2017 12:43 am
Forum: Personal Finance (Not Investing)
Topic: How to determine ‘reasonable compensation’
Replies: 9
Views: 988

Re: How to determine ‘reasonable compensation’

This might be helpful...not a Watson client, and I'm not recommending them...

https://www.watsoncpagroup.com/s-corp-salary/
by gilgamesh
Sat Dec 30, 2017 12:09 am
Forum: Personal Finance (Not Investing)
Topic: Retirement accounts and physician SCorps and Tax Reform
Replies: 48
Views: 3413

Re: Retirement accounts and physician SCorps and Tax Reform

I surrender. Lol!...I don't know anything about LLC , S-corp, ABC, CNN, FOX...it's all Greek to me... However if random guy says "There are stand alone s-corps." and my CPA quote said " There is a misconception floating around out there that an S-Corp is a standalone entity. Not true"....one or the...
by gilgamesh
Fri Dec 29, 2017 8:53 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 and Tax Reform

An LLC taxed as an S-corp is the only S-corp entity I'm aware of...I'm fairly certain there is no stand alone S-corp,...so, an LLC taxed as an S-corp will only get a deductible of the lesser of the total taxable income or corporate income (The non-W2 part, schedule K line1). There are stand alone s...
by gilgamesh
Fri Dec 29, 2017 5:16 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 and Tax Reform

Self-employed refers to a sole-proprietor or partner paying SE tax. An S-Corp shareholder-employee paying FICA is not self-employed. I would definitely consult with a professional before taking such a significant act such as dissolving an S-Corp. There really hasn't been much time to fully understa...
by gilgamesh
Fri Dec 29, 2017 1:36 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 and Tax Reform

Self-employed refers to a sole-proprietor or partner paying SE tax. An S-Corp shareholder-employee paying FICA is not self-employed. I would definitely consult with a professional before taking such a significant act such as dissolving an S-Corp. There really hasn't been much time to fully understa...
by gilgamesh
Fri Dec 29, 2017 1:12 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 and Tax Reform

Lol!...ok! do you see any loophole as per Forbes article, if so what is it?...thanks! Well, I don't know if it is really a loophole when the tax writers intentionally put it in there. What Forbes is referring to is, that the self-employed are likely to get a much larger deduction than an S-Corp for...
by gilgamesh
Fri Dec 29, 2017 12:44 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 and Tax Reform

Forbes magazine used the word 'loophole'....could you please comment on this?...it's in regard the new 199A deduction...this is what they said...Thanks! You missed the point. It is not an " LLC Loophole". I'll repeat, an LLC is not a tax status. The fact that it is a default single member LLC or a ...
by gilgamesh
Fri Dec 29, 2017 11:57 am
Forum: Personal Finance (Not Investing)
Topic: Retirement accounts and physician SCorps and Tax Reform
Replies: 48
Views: 3413

Re: Retirement accounts and physician SCorps and Tax Reform

An LLC taxed as an S-corp is the only S-corp entity I'm aware of...I'm fairly certain there is no stand alone S-corp,...so, an LLC taxed as an S-corp will only get a deductible of the lesser of the total taxable income or corporate income (The non-W2 part, schedule K line1). There are stand alone s...
by gilgamesh
Fri Dec 29, 2017 10:35 am
Forum: Personal Finance (Not Investing)
Topic: Confusion about prepaying property taxes
Replies: 122
Views: 11873

Re: Confusion about prepaying property taxes

We have not received and statement/invoice/bill of any sort for 2017...we never do...we only get one invoice the following March. However, they accept estimated payments for 2017 even in 2017. I paid my 2016 property taxes in March 2017. That's typical...then I deduct that in 2017 taxes. But this y...