No problem, thank you!LadyGeek wrote: ↑Sat May 08, 2021 6:51 am I merged uwbadgers's thread into the ongoing discussion. The combined thread is in the US Chapters (community) forum.
Congrats!
Search found 86 matches
- Sat May 08, 2021 6:53 am
- Forum: US Chapters
- Topic: Post your Financial Milestone Announcements Here
- Replies: 3606
- Views: 562122
Re: Post your Financial Milestone Announcements Here
- Sat May 08, 2021 6:11 am
- Forum: Personal Finance (Not Investing)
- Topic: Share your net worth progression
- Replies: 4273
- Views: 1072012
Re: Share your net worth progression
updating to add in the last few years!
2018---741k
2019---808k
2020---917k
2021---1325k Sold Rental Mid 2020 (244k but had 0 mortgage) Put most into market back in July 2020
- Sat May 08, 2021 6:05 am
- Forum: US Chapters
- Topic: Post your Financial Milestone Announcements Here
- Replies: 3606
- Views: 562122
2 Comma Club!
[Thread merged into here --admin LadyGeek] I've seen these posts here but never thought it'd be a reality anytime soon for me, but, here we are, 2 commas (hit this about a week ago) in investments! As is posted often here, things like this are hard to celebrate/share with non-anonymous people :) I thought I'd lay out where we are, how we got here, and how a "domino effect" of choices ended up helping us a lot over the years....it's kind of wild to think back at certain choices, 6-7 years ago, that made such a huge impact on things now. I don't quite recall how it started/why but I've now tracked expenses/income/investments since 2013.....pretty cool to see the numbers then vs. now. Of course, it's been a good 8 years which I real...
- Wed Mar 17, 2021 7:29 am
- Forum: Personal Investments
- Topic: tIRA/SEP IRA issue
- Replies: 8
- Views: 705
Re: tIRA/SEP IRA issue
I ended up calling VG and they had me contribute as "employer" and it worked out fine. I already had made the SEP IRA.
So I believe that through my recharacterization/backdoor I am taxed on the earnings I had for the year it was in the ROTH and the new SEP IRA, which I could contribute to based off my net LLC income, helped lower my taxes owed.
So I believe that through my recharacterization/backdoor I am taxed on the earnings I had for the year it was in the ROTH and the new SEP IRA, which I could contribute to based off my net LLC income, helped lower my taxes owed.
- Tue Mar 16, 2021 8:26 am
- Forum: Personal Investments
- Topic: tIRA/SEP IRA issue
- Replies: 8
- Views: 705
tIRA/SEP IRA issue
Hi,
I am having trouble contributing to a SEP IRA for 2020 tax year......here is the situation.
2020, contributed to ROTH IRA Jan 1......income too high, so did the following:
In early 2021....
Recharacterized ROTH contribution to tIRA
Coverted tIRA back to ROTH
This was all for the 2020 tax year.
-
-
Now, my tax guy says based on my LLC (single member LLC) net income I can contribute $3,200 to a SEP IRA for 2020 and also save on taxes, nice!
But, when I go into Vanguard it says I've hit my maximum (6k) allowed contribution already.
What am I missing? Did I do something incorrectly?
I've learned my lesson and will not be diving into roth/iIRA until end of year as this was all a hassle
Thank you in advance!
I am having trouble contributing to a SEP IRA for 2020 tax year......here is the situation.
2020, contributed to ROTH IRA Jan 1......income too high, so did the following:
In early 2021....
Recharacterized ROTH contribution to tIRA
Coverted tIRA back to ROTH
This was all for the 2020 tax year.
-
-
Now, my tax guy says based on my LLC (single member LLC) net income I can contribute $3,200 to a SEP IRA for 2020 and also save on taxes, nice!
But, when I go into Vanguard it says I've hit my maximum (6k) allowed contribution already.
What am I missing? Did I do something incorrectly?
I've learned my lesson and will not be diving into roth/iIRA until end of year as this was all a hassle
Thank you in advance!
- Sat Jan 09, 2021 8:23 am
- Forum: Personal Investments
- Topic: Review of Roth IRA to tIRA + 2021 backdoor roth
- Replies: 4
- Views: 422
Re: Review of Roth IRA to tIRA + 2021 backdoor roth
So I'm looking to do the conversion, of the recharacterized roth, right now, but with the total now $7,300, which is over the 6k I'd convert, what happens/what do I do with that remaining $1,300?placeholder wrote: ↑Fri Jan 08, 2021 5:20 pm There will still be the gains from the 2020 recharacterization since I don't see anywhere that the op converted that to roth.
1. 2020 over income roth contribution---6k
2. Recharacterize that 6k ROTH to tIRA, gains came with---Total $7,300
3. Convert through backdoor that new tIRA to ROTH for 2020.....but now have 7.3k, not 6k?
Step 3 is where I am and confused......
And I need to do that step (I think) before I could do the "normal" Backdoor for 2021 because I need the iIRA to have no balance, right?
Thanks.
- Fri Jan 08, 2021 1:37 pm
- Forum: Personal Investments
- Topic: Review of Roth IRA to tIRA + 2021 backdoor roth
- Replies: 4
- Views: 422
Review of Roth IRA to tIRA + 2021 backdoor roth
I posted recently (https://www.bogleheads.org/forum/viewtopic.php?f=1&t=334532&p=5701288#p5701288) of how we ended up with a large income increase and are about 100k over ROTH income limits. This is the follow up plan. I *think* I've got things figured out but wanted to lay it out and get some eyes on it before making it all happen. These contributions were done January 2020. His 2020 ROTH contribution---6k Her 2020 ROTH contribution---6k Neither of us had/have a tIRA with any balance before this. A few days ago, using Vanguard, I completed a form that helped me recharacterize my non-allowed ROTH contribution to a Traditional IRA. To do this I created a tIRA and then through the forms moved the 6k from ROTH to newly created tIRA. Th...
- Fri Jan 01, 2021 10:57 am
- Forum: Personal Investments
- Topic: 2020 over Roth limit, contributed Jan 1, what now?
- Replies: 12
- Views: 1490
Re: 2020 over Roth limit, contributed Jan 1, what now?
Yes, that is correct, I do have one through my LLC, but not through my W2 job.
I created and contributed to it last year (2020).
- Fri Jan 01, 2021 10:51 am
- Forum: Personal Investments
- Topic: 2020 over Roth limit, contributed Jan 1, what now?
- Replies: 12
- Views: 1490
Re: 2020 over Roth limit, contributed Jan 1, what now?
You'll need to do 2 recharacterizations. https://investor.vanguard.com/ira/ira-recharacterization#:~:text=Your%20contribution%20must%20be%20recharacterized,amended%20return%20at%20that%20time.) And then after that is done you can probably convert the Traditional IRAs to Roth IRAs. If you might be on the income boundary again in 2021 better to just do two Backdoor contributions to begin with. Thank you for this. I've gone ahead and followed the link. I opened a Traditional IRA The form basically guides me into the flip from Roth to Trad.....seems pretty straightforward. It says it will transfer in kind to the new account. I imagine I'll get some tax forms eventually for this transaction but other than that good to go, right? Anything I'm mi...
- Wed Dec 30, 2020 3:33 pm
- Forum: Personal Investments
- Topic: 2020 over Roth limit, contributed Jan 1, what now?
- Replies: 12
- Views: 1490
2020 over Roth limit, contributed Jan 1, what now?
Overall Question: What do I do with the 12k I put in Roth IRA in 2020 that now we will be over the income limit to contribute? A "good" problem to have but on Jan 1, 2020 we contributed and maxed both of our Roth IRA's (6k each). Now, while somewhat expected as the year went on, but definite now that the year is wrapping up, I'm pretty sure we will be way over the income limit. Roughly: Her: 210k Him: 40k Him Single Member LLC: 25k TOTAL Income: 275k - - Retirement Vessels: Her 401k Her Roth IRA Him Roth IRA Him Solo401k - - I did some searching here and I see all kinds of stuff on backdoor roth, but that appears to be something you do before ......you use the traditional ira and then flip to roth. But what about this situation? ...
- Sat Aug 08, 2020 7:55 am
- Forum: Personal Investments
- Topic: Improving tax efficiency in retirement accounts
- Replies: 20
- Views: 2048
Re: Improving tax efficiency in retirement accounts
Thank you all for the replies. Definitely a bit more to it than I thought :) Still learning a lot, that's for sure. A few things. 1. I do NOT have a 401k offered through my W2 job, thus, the solo 401k, but, am limited because I purely don't make a lot through the LLC and, unless I am not understanding it correctly, I can't put more into the solo401k than I NET make in the LLC. So, that's why this year was only 12k and I'm assuming 10k in the future each year guessing on my LLC income. 2. Thanks to many of you for breaking down what I'm looking to do and pros/cons each way. I have seen the TLH discussion many times here but never really understand who/why you'd use it. I see now that it's something I'll read about more. 3. If I understood co...
- Thu Aug 06, 2020 6:04 pm
- Forum: Personal Investments
- Topic: Improving tax efficiency in retirement accounts
- Replies: 20
- Views: 2048
Re: Improving tax efficiency in retirement accounts
Further, why do you believe backdoor Roth contributions will be unavailable in the future? And is there any reason you wouldn't invest more through your Solo 401(k) rather than adding brokerage funds? Seems like you should make use of that space as a pretax or Roth contribution. Thank you for the advice. I believe my wife’s company doesn’t allow the additional contributions that make the back door roth possible. So, not the future, but more so what we are capable of account wise? Also, my solo 401k is created as of about a month ago. It’s for my small LLC that is my side income. Mostly likely can’t contribute more as I don’t have enough income. The brokerage funds are newly created as we sold a paid off rental and had around 225k to disper...
- Thu Aug 06, 2020 5:11 pm
- Forum: Personal Investments
- Topic: Improving tax efficiency in retirement accounts
- Replies: 20
- Views: 2048
Improving tax efficiency in retirement accounts
Hi all, I am looking to flip our ROTH IRA's into 100% stocks while swapping out some of our brokerage funds to be more bond heavy. My thinking here, and please correct me if I'm wrong on this, is to make our ROTHs gain as much as possible over time = 100% stocks. We will do bonds in accounts that aren't tax free like the ROTH. Is this thinking correct? We are 100% in vanguard so I believe I can just "exchange" one fund for another, with that day's price, correct? While I know this probably could've been done better from the start, some things weren't "seen" until now :) - - Here's our info currently: Age: 36/37, 2 kids TOTAL FUNDS: 642k His ROTH---86k----VTSAX (100% stocks) Her ROTH---117k---VTHRX (2030 Target Fund = 65%...
- Thu Jul 16, 2020 8:37 am
- Forum: Personal Investments
- Topic: Windfall/Use solo401k for tax savings?
- Replies: 10
- Views: 632
Re: Windfall/Use solo401k for tax savings?
Bringing this one back up after some time......I just finished officially opening a Vanguard Solo 401k. I think I am understanding my contribution limits, but please correct if wrong. My main goal here is to put as much pre-tax money into this retirement vessel as possible. - - Projected GROSS income for LLC in 2020: 25k Projected NET income for LLC in 2020: 15k Planned contributions: Total Contributions: $16,455 Employer Contribition = $3,750 (25% of W-2 Income) Elective Deferral (Net Income - SE tax (15.3%) = $12,705 (15,000 * 84.7% = 12,705) - - Does this appear right for my maximum? But I can't contribute more than my net profit, is that right? Mainly I'm limited due to a lower net income than allowable contributions, right? - - This is...
- Thu Jul 02, 2020 5:45 am
- Forum: Personal Investments
- Topic: Windfall/Use solo401k for tax savings?
- Replies: 10
- Views: 632
Re: Windfall/Use solo401k for tax savings?
I didn’t seem to find anything that referred to that.
She has 401k, Roth 401k access, but didn’t see after after tax options listed.
She has 401k, Roth 401k access, but didn’t see after after tax options listed.
- Wed Jul 01, 2020 6:42 pm
- Forum: Personal Investments
- Topic: Windfall/Use solo401k for tax savings?
- Replies: 10
- Views: 632
Re: Windfall/Use solo401k for tax savings?
I have zero knowledge of what/how that works, besides seeing it around here.
What would I look for in her plan to find out?
What would I look for in her plan to find out?
- Wed Jul 01, 2020 5:38 pm
- Forum: Personal Investments
- Topic: Windfall/Use solo401k for tax savings?
- Replies: 10
- Views: 632
Re: Windfall/Use solo401k for tax savings?
Thank you for the reply.
My net llc income currently, 6 months in, is 8k
So 19,600 + 20% of 16k(yearly projection) = 3,200
$22,800?
While thinking about things more I wonder if this would also help us meet the income, well, below the limit, for ROTH IRA contributions.
I feel we may be close to cut off this year?
My net llc income currently, 6 months in, is 8k
So 19,600 + 20% of 16k(yearly projection) = 3,200
$22,800?
While thinking about things more I wonder if this would also help us meet the income, well, below the limit, for ROTH IRA contributions.
I feel we may be close to cut off this year?
- Wed Jul 01, 2020 4:55 pm
- Forum: Personal Investments
- Topic: Windfall/Use solo401k for tax savings?
- Replies: 10
- Views: 632
Windfall/Use solo401k for tax savings?
We recently sold our rental condo and I cashed a check for 225k......through drive through :) That was the only option obviously these days and made for a fun way to deposit that. My wife and I are now gradually planning where to disperse this money. My main question is would opening and depositing in a solo 401k be useful here, tax wise? ———More details: Married 36/36, with 2 kids. Income Her: 200k this year, but variable job, on track for this Him: 40k Him LLC: 30k (single member llc) We maxed HER 401k and both Roth IRA for the year already. ***I do NOT have a 401k through employer. Retirement savings: 425k - - So my main thought her is would dropping a hefty amount into a solo401k be helpful for tax savings? I think just through income a...
- Fri Apr 03, 2020 5:33 am
- Forum: Personal Consumer Issues
- Topic: Should I keep paying fitness center fees while it is closed?
- Replies: 114
- Views: 7977
Re: Should I keep paying fitness center fees while it is closed?
Thought I'd share my 2 cents as I'm a personal trainer that had my place of work shut down a few weeks back. Now, I'm in a bit different situation as we are a studio fitness center, not massive globogym. All of our sessions are by appointment, either 1 on 1 or group, there is no "gym fee," just the sessions you use. While I am not the owner I can see on the 1st of the month the "sessions charged" out to each person as that is the date each month they pull out. I'd say about 80% of our clients are still paying and many even contacted the owners saying to keep paying because they want to support us. - - In addition, and have you checked if your gym is doing this?........is we are offering virtual sessions. In 30 minutes I'...
- Thu Mar 05, 2020 3:38 pm
- Forum: Personal Finance (Not Investing)
- Topic: Fun 401k milestone
- Replies: 5
- Views: 737
Re: Fun 401k milestone
I/we will be honest, never actually thought of this or knew it mattered.
I just looked up info and it says:
“......matching contribution of $1 for every $1 eligible employees contribute during 2020, up to 4% of eligible pay.”
“The annual matching contribution is based on the actual total dollar amount you contribute during the year as a percentage of your total eligible 401k savings plan compensation for the year.”
The match always is deposited yearly about 2 months into the new year.
So, reading that over, I think all is ok. Yeah?
- Thu Mar 05, 2020 3:33 pm
- Forum: Personal Finance (Not Investing)
- Topic: Fun 401k milestone
- Replies: 5
- Views: 737
Re: Fun 401k milestone
Yes, she’s VERY busy right now. Also we love in Midwest so this is typically when things really pick up.niceguy7376 wrote: ↑Thu Mar 05, 2020 3:21 pmCongrats on reaching a milestone. If your spouse is into loan origination business, then it would keep them busy for the next few months.
- Thu Mar 05, 2020 3:12 pm
- Forum: Personal Finance (Not Investing)
- Topic: Fun 401k milestone
- Replies: 5
- Views: 737
Fun 401k milestone
We’ve been fortunate enough to be able to max 2 Roth IRA and 1 401k for the past 6 years or so (no 401k for my job). But, most years it’s taken most of the year or we did it slowly, typically just due to cash flow balance. This year though we had enough savings from last year that we plugged both ROTH’s Jan 1 and as of tomorrow the 401k will be filled at 19.5k. Not a bad 2 months! Kind of a relief to have 31.5k saved for the year. One side note, my wife’s job can be really variable, as in, 30k months and 1k months (home mortgage originator). So, it’s hard to average out her 401k contributions so with a few early months that were big we went for it. We will put some in taxable now but also decided to push hard at this and spend a little more...
- Mon Feb 17, 2020 3:10 pm
- Forum: Personal Finance (Not Investing)
- Topic: Understanding Tax Implication of Rental Property sale
- Replies: 7
- Views: 814
Understanding Tax Implication of Rental Property sale
Hi all, WILL be selling our rental property this year.....so I'm playing around with my 2019 taxes for a little "test" run of what the tax situation will look like after the sale next year. I'll try to include helpful information. Married, file jointly Combined Income: 192k in 2019 Total tax owed in 2019 pre-"test" of this = $300. For all intents and purposes I'll assume 0 owed as my starting figure for the rental Rental Property Purchased: 7/2007 for 189k Sale Expenses in 2020: 18k (assuming sale at 240k) Expected Sale Price in 2020: 240k Rental for: 7 years Rental Numbers Put into Turbotax for Test Total Sales Price: 240k Cost of Property (tax basis) plus expenses of sale: 189k + 18k = 207k Depreciation taken on proper...
- Fri Feb 07, 2020 4:35 pm
- Forum: Personal Consumer Issues
- Topic: Chromebook upgrade? Laptop?
- Replies: 16
- Views: 2038
Re: Chromebook upgrade? Laptop?
Thanks again for the advice here. As mentioned, I ended up purchasing the Lenovo Yoga Chromebook c630. I LOVE IT! :) Wish I did this a while ago. The screen size is just what I was hoping (15.6 inch) and the speed is 500x better than my old chromebook.....at least it feels that way. I tested out my workflows, mainly for my business, and the loading of my sheets and web pages will save me SO much time and productivity will increase big time. Ended up spending $475 total and the open box purchase that was $100 off came in perfect condition in all packaging and such. Typing from it now :) Kind of funny that I haven't bought a computer of any kind for ~12 years but this one cost less than the one 12 years ago and that one is pretty much non fun...
- Wed Feb 05, 2020 5:15 pm
- Forum: Personal Consumer Issues
- Topic: Chromebook upgrade? Laptop?
- Replies: 16
- Views: 2038
Re: Chromebook upgrade? Laptop?
Thanks for the help everyone! Been spending the last few hours researching and trying to figure out this out.
Decided to go with the Lenova Chromebook C630
Found it on best buy, certified open box excellent condition for $100 off So, only $450. There was just no way to upgrade what I wanted/needed in the lower price range......a good time to spend a bit more for long term quality.
Specs:
15.6 inch touchscreen screen
8GB RAM
8th Gen Intel® Core™ i5-8250U mobile processor
128 GB storage
Great reviews and should be a fast moving device which is really what I want and need.
Decided to go with the Lenova Chromebook C630
Found it on best buy, certified open box excellent condition for $100 off So, only $450. There was just no way to upgrade what I wanted/needed in the lower price range......a good time to spend a bit more for long term quality.
Specs:
15.6 inch touchscreen screen
8GB RAM
8th Gen Intel® Core™ i5-8250U mobile processor
128 GB storage
Great reviews and should be a fast moving device which is really what I want and need.
- Wed Feb 05, 2020 12:38 pm
- Forum: Personal Consumer Issues
- Topic: Chromebook upgrade? Laptop?
- Replies: 16
- Views: 2038
Re: Chromebook upgrade? Laptop?
Ouch, that's a bit more than I want to spend :) I found these 2 as potential options. Would both of these, given their stats, be a pretty solid upgrade for speed of multitasking? https://www.amazon.com/Samsung-Chromebook-Processor-32Gb-Emmc-XE350XBA-K01US/dp/B07XW266D9 Samsung Chromebook 4+ Processor: Intel Celeron Processor N4000 System Memory: 4GB LPDDR4/4GB x 1, Max 4GB Storage: 32GB eMMC Display: 15.6" FHD LED (1920 x 1080) PRICE: $300 - - - https://www.amazon.com/Chromebook-Clamshell-NanoEdge-Processor-C425TA-DH384/dp/B07VT254P6 Asus Chromebook C425 Screen Size 14 inches Max Screen Resolution 1920 x 1080 pixels Processor 3.4 GHz core_m RAM 8 GB DDR3L Hard Drive 64 GB Embedded MultiMediaCard Graphics Coprocessor Intel HD Graphics 6...
- Wed Feb 05, 2020 9:38 am
- Forum: Personal Consumer Issues
- Topic: Chromebook upgrade? Laptop?
- Replies: 16
- Views: 2038
Chromebook upgrade? Laptop?
Hi all, I currently use this model: samsung chromebook xe500c13-k04us Intel Celeron N3060. Intel HD Graphics 400 (Braswell) 4096 MB. ... 11.6 inch 16:9, 1366 x 768 pixel 135 PPI, LED, glossy: no. 16 GB eMMC Flash, 16 GB. ... 1 USB 2.0, 1 USB 3.0 / 3.1 Gen1, 1 HDMI, Audio Connections: 3.5mm, Card Reader: microSD. Intel Dual Band Wireless-AC 7260 (a/b/g/n = Wi-Fi 4/ac = Wi-Fi 5), Bluetooth 4.0. - - It just isn't quite fast enough for my needs/uses and I want more speed, mainly. What I need it for I run a nutrition coaching business and it's entirely online, thus, my main need for the upgrade. I typically have 8-10 google sheets open at a time along with a few other pages. This is needed and closing/opening isn't what I need.....I need many ta...
- Sat Jan 11, 2020 6:25 am
- Forum: Personal Finance (Not Investing)
- Topic: What to know? Preparing to sell rental property
- Replies: 9
- Views: 1086
Re: What to know? Preparing to sell rental property
Didn’t even think of that. I’ll have to look into that more.seadreamer wrote: ↑Fri Jan 10, 2020 9:05 pm I'm in a somewhat similar position. Although not selling this year probably in 2-3 years.
........
I see that you did a Roth this year for yourself and spouse. I'm wondering if you will be above the Roth IRA limit this year. I was considering doing a traditional IRA in the year we sell.
Anyone know the answer the the ROTH IRA question?
- Fri Jan 10, 2020 3:27 pm
- Forum: Personal Finance (Not Investing)
- Topic: What to know? Preparing to sell rental property
- Replies: 9
- Views: 1086
Re: What to know? Preparing to sell rental property
So then the 123k is taxed at 15%?
I believe that was the rate I’d fit into for cap gains.
About 18.5k in taxes owed?
I believe that was the rate I’d fit into for cap gains.
About 18.5k in taxes owed?
- Fri Jan 10, 2020 2:43 pm
- Forum: Personal Finance (Not Investing)
- Topic: What to know? Preparing to sell rental property
- Replies: 9
- Views: 1086
What to know? Preparing to sell rental property
We will be selling our rental property this Spring. This is our one and only rental as we "fell" into it about 7 years ago. Just ready to be done with it now as it is a condo and the HOA is working on phasing rentals our so going to get out now and enjoy the cash :) Main questions surround anything I should be aware of/plan ahead for due to the sale and large cash proceeds. Relevant info below.....please let me know if more is useful in this case. And, if there is nothing "extra" to do, that works too. Just thought I'd get some thoughts from the smart minds here! - - Rental Expected Sale Price : 220-240k Mortage : 0 :) We worked really hard on this and have had it clear for the last ~5 years and had some very nice rental...
- Sun Oct 27, 2019 7:32 am
- Forum: Personal Finance (Not Investing)
- Topic: Share your net worth progression
- Replies: 4273
- Views: 1072012
Re: Share your net worth progression
Posted here in this thread about 2 years ago so thought I’d take a closer look at things. 2013---227k Kid 1, bought house 1 2014---302k 2015---411k Kid 2 2016---546k 2017---702k sold house 1 (large profit), bought house 2 2018—790k 2019—838k Big win for us, thanks to some wage increase, is maxing out a 401k and 2 ROTH’s (only have 401k offered for wife, not me). Another fun win for us was this year we bought 2 new cars (both were used one year old). We had been driving 10 and 14 year old, paid off cars but were running into maintenance issues. Paid one car in cash and while have a 19k loan for other it’s reasonable at ~$375/month and we will pay ahead. Have had some lifestyle creep over the last few years but spending vs net income still gi...
- Tue Feb 05, 2019 6:17 pm
- Forum: Personal Finance (Not Investing)
- Topic: Tax questions for newbie to single member LLC
- Replies: 12
- Views: 1095
Re: Tax questions for newbie to single member LLC
Have you been following any of the QBI threads. Did you double check that TurboTax calculated this correctly? The Section 199A Final Regulations were released less than three weeks ago and they included significant changes to the QBI calculation and QBI deduction calculations. The 1040 Instructions and Publication 535 were only released 7 - 10 days ago. The tax software companies have been scrambling to catch-up. I have been advising that people with pass-thru businesses not be guniea pigs and not be in a hurry to file. Depending on the readiness of the tax software and your personal circumstances, you could have understated your income and taxes due. Somewhat. I reviewed the QBI thing for a while on turbotax. I believe I checked "no....
- Tue Feb 05, 2019 5:06 pm
- Forum: Personal Finance (Not Investing)
- Topic: Tax questions for newbie to single member LLC
- Replies: 12
- Views: 1095
Re: Tax questions for newbie to single member LLC
UPDATE: 2/5/19 I've just completed my taxes for 2018 using Turbotax. My questions originally were about estimated taxes and if I need to pay it. Here is how the year played out: Total Income: $151,142 Taxes Withheld: $14,756 Federal Deductions: $28,369 Federal Credits: $5,200 My single member LLC made 24k this year....which is included in that income. When all is said and done, the Federal/State are: Federal: OWE 585 State: REFUND 481 NET: Owe $104 - - I did not pay any estimated taxes for my single member LLC in 2018. Of that total income, 24k was my LLC, the rest W2 income. We adjusted withholding midway through the year. Would turbotax understand my tax liability for LLC = not penalized? Did I calculate this out correctly with minimal ow...
- Fri Jul 06, 2018 4:12 pm
- Forum: Personal Finance (Not Investing)
- Topic: Tax questions for newbie to single member LLC
- Replies: 12
- Views: 1095
Re: Tax questions for newbie to single member LLC
The AGI will only directly be use to determine that your AGI > $150K. To meet the prior year safe harbor, your withholding + estimated taxes will need to be 110% of the "tax shown on your 2017 return". For most people this is Form 1040 line 63 total tax. See the Form 1040 line 79 instructions for what might adjust line 63. It is very likely that your "Total Tax Due = $17K" was Line 63 + adjustments. This would mean that your prior year safe harbor would be $17K * 110% = $18,700. It is difficult for us to estimate your 2018 tax liability. You should use one of the calculators with your specific information. We don't know the distribution of you and your wife's W-2 wages. Have you exceeded the Social Security maximum wage...
- Fri Jul 06, 2018 2:09 pm
- Forum: Personal Finance (Not Investing)
- Topic: Tax questions for newbie to single member LLC
- Replies: 12
- Views: 1095
Re: Tax questions for newbie to single member LLC
Thanks for that latest reply.....I *think* I'm understanding......
Does this help?
2017 Taxes
AGI 155k
Tax Withheld 21k
Total Tax Due 17k
We had a $4,250 federal refund and $1,600 state refund
We both have slightly variable incomes with our W2 jobs, but assuming that AGI remains ~155k and I have my new 25k from single member LLC, is there an easy way, or any way, to calculate if I should pay estimated or not?
In my scenario is also sounds like if my wife/I were to adjust witholding so it takes a bit more that should take care of things?
Does this help?
2017 Taxes
AGI 155k
Tax Withheld 21k
Total Tax Due 17k
We had a $4,250 federal refund and $1,600 state refund
We both have slightly variable incomes with our W2 jobs, but assuming that AGI remains ~155k and I have my new 25k from single member LLC, is there an easy way, or any way, to calculate if I should pay estimated or not?
In my scenario is also sounds like if my wife/I were to adjust witholding so it takes a bit more that should take care of things?
- Tue Jul 03, 2018 3:12 pm
- Forum: Personal Finance (Not Investing)
- Topic: Tax questions for newbie to single member LLC
- Replies: 12
- Views: 1095
Re: Tax questions for newbie to single member LLC
Thanks for these responses!
I understand opening a solo 401k is an optiom and changing withholding and may be a direction to go now.
Currently, is there anything WRONG with just keeping the income?
Is there set “rules” for estimated taxes, or do they not apply to single member llc since it all goes on the same taxes?
For reference, most likely this additional income won’t go past 25k yearly for the foreseeable future, and, if anything, drops a bit.
I understand opening a solo 401k is an optiom and changing withholding and may be a direction to go now.
Currently, is there anything WRONG with just keeping the income?
Is there set “rules” for estimated taxes, or do they not apply to single member llc since it all goes on the same taxes?
For reference, most likely this additional income won’t go past 25k yearly for the foreseeable future, and, if anything, drops a bit.
- Sun Jul 01, 2018 11:59 am
- Forum: Personal Finance (Not Investing)
- Topic: Tax questions for newbie to single member LLC
- Replies: 12
- Views: 1095
Tax questions for newbie to single member LLC
[Update/Question in my latest post 2/5/19] Hi all, Here's my basic question: IS there anything I should be aware of/doing right now with an expected ~25k additional income from my single member LLC in 2018? My business has taken off quickly after starting in last October 2017 and right now I'm on pace to do at least 24k extra with the business. INFO : HHI = ~170k (not including LLC) LLC = ~25k in 2018 TOTAL: ~200k MAX 401k (only 1 available) and both ROTH IRAs LLC INFO: I run an online based nutrition coaching business. I coach people through a year of nutrition habit change, entirely through an online system I created. I have very few expenses and run the business entirely from my home office. Internet, cell phone and things like that I de...
- Fri Feb 09, 2018 1:17 pm
- Forum: Personal Finance (Not Investing)
- Topic: Rental Sell or Keep Decision help
- Replies: 9
- Views: 974
Re: Rental Sell or Keep Decision help
" Transaction costs are high to sell or buy real estate. Sure, a 7% annual return isn't amazingly wonderful, but do you really want to pay $13k - $15k in realtor commissions and title work just to offload this - plus $4500 in capital gains and probably $10k or so in depreciation recapture? " ------>Well, not really :) It does help hearing it laid out that way. That's really been our struggle, trying to lay this out in an objective way to decide what may be the best route, while I know that is still coming down to personal preference. "Have you increased the rent over the past 5 years? That could be why it is only a 5% ROI. It is very common to increase the rent every year 2-3%. If they have lived there for 5 years, they might...
- Thu Feb 08, 2018 2:19 pm
- Forum: Personal Finance (Not Investing)
- Topic: Rental Sell or Keep Decision help
- Replies: 9
- Views: 974
Re: Rental Sell or Keep Decision help
Hi all, Thanks for the feedback so far. To answer/follow up on a few things. 1. Yes, the property has just started to appreciate a bit, but it took ~10 years to get back to what it was purchased for in 2007....poor timing :) I would think the area continues to go up as it's in a nice part of town, good schools, etc. The complex itself is ~15 years old but kept up in good condition. 2. As far as expenses, I included everything in my calculation, including special assessments. We've had a few over the 5 years usually ~600-800$ each time, but all of that included with other expenses average out to only ~$40/month over the last 5 years. 3. The "cash" invested into this when my wife purchased it was an ~80k gift downpayment. Over the c...
- Thu Feb 08, 2018 11:15 am
- Forum: Personal Finance (Not Investing)
- Topic: Rental Sell or Keep Decision help
- Replies: 9
- Views: 974
Rental Sell or Keep Decision help
Hi, Looking for some thoughts/feedback/advice on our rental property situation. It's not a "problem" at all but more so trying to determine which decision may be most beneficial long term. I have asked some questions on this before but a few things have changed since then (we moved to a new house, mortgage is now 0 on the rental) 2007 purchase ----190k (a condo) Estimated sale 2018 ---220k (same unit just sold for this a few weeks ago) Mortgage: Paid off in full Rented for last 5 years, same people. This was an "accident" as we did rental so we could buy a new house back then. Condo didn't have enough owners/renters as it was a conversion so traditional loans were hard. That time has long passed and selling + people gett...
- Sat Dec 09, 2017 8:56 am
- Forum: Personal Finance (Not Investing)
- Topic: End of year Review
- Replies: 3
- Views: 1043
Re: End of year Review
85/15 is a little light on bonds for my taste. I am near your age and 75/25. But it isn't wrong. If you're over the Roth limit, use the back door. It doesn't seem you have traditional IRAs that would complicate this. I think it's needlessly complicated to hold both target date funds and individual funds, but if you have a system to track it then no problem. Thanks for the feedback. As far as funds go, I set this up a few years ago when we did the "mega switch" from all high fee, managed funds. Right now the only individual fund we contribute to is my ROTH IRA, in Total Stock Market. I agree, I'd like to work the bonds down more too. I'll play around a little with the various amounts to get that down. Right now the 401k, 18.5k thi...
- Thu Dec 07, 2017 2:05 pm
- Forum: Personal Finance (Not Investing)
- Topic: End of year Review
- Replies: 3
- Views: 1043
End of year Review
Thought I'd put together a summary of where we are at and see if there was anything that "stuck" out to anyone with our current plan or if there is anything we could be doing better/more efficiently. Thanks in advance, not many people you can talk to about things like this :happy Age: 33/34, have 2 kids 2017 Income: ~175k 2018 Income: ~175k + ~20-25k new LLC side business (single member) = ~200k combined (will this effect Roth IRA's?) I think as a solo member LLC I can open another retirement account? Perhaps something I should look in to for 2018? I only have a ROTH IRA with no other offerings at my job. 5 year monthly average NET income: $8,600 (after 401k) 5 year monthly average spending: $5,900 (includes all housing and other ...
- Thu Dec 07, 2017 11:28 am
- Forum: Personal Finance (Not Investing)
- Topic: Share your net worth progression
- Replies: 4273
- Views: 1072012
Re: Share your net worth progression
2013---227k Kid 1, bought house 1
2014---302k
2015---411k Kid 2
2016---546k
2017---702k sold house 1 (large profit), bought house 2
2014---302k
2015---411k Kid 2
2016---546k
2017---702k sold house 1 (large profit), bought house 2
- Tue Sep 26, 2017 10:42 am
- Forum: Personal Finance (Not Investing)
- Topic: Should I create LLC for new business?
- Replies: 18
- Views: 2013
Re: Should I create LLC for new business?
Being an independent contractor does cause you be a business that allows more options for legitimate and 100% legal business expense deductions. However, a default single member LLC is treated as a disregarded entity by the IRS. You will file on the same exact Schedules C and SE as a sole proprietor. Therefore, there will be no difference taxwise. There is one other advantage as a business. You will be both the employer and employee. This allows you to adopt an employer retirement plan. This does not matter if the maximum your budget allows is <= the $5,500 IRA contribution limit. However, if your financial plan says that your total retirement plan contributions should be 20% of your gross income, you can not reach that with the IRA alone....
- Sun Sep 24, 2017 7:18 am
- Forum: Personal Finance (Not Investing)
- Topic: Should I create LLC for new business?
- Replies: 18
- Views: 2013
Re: Should I create LLC for new business?
Hi all, OP back. Thanks for all the words here......can't say I understand all of them, but thanks :) From the sounds of it, many say that this isn't really a tax BENEFIT for me. My boss, not a CPA keep in mind, has made it sound like in an LLC setup I'm able to deduct A LOT of things thus showing less profit thus taxing me less for that portion of my income.....but sounds like that isn't necessarily 100% true or lawful? Just to clarify a few things, if it's helpful, there will never be debt to incur for this, never an actual location (besides my home), and insurance wise very little risk on my end the way the program goes. Does the below change any thoughts here? Both of these are assuming I get to additional 20k/year soon (currently at 10...
- Sat Sep 23, 2017 6:51 am
- Forum: Personal Finance (Not Investing)
- Topic: Should I create LLC for new business?
- Replies: 18
- Views: 2013
Should I create LLC for new business?
Hi all, SUMMARY: Should I create a single member LLC for my new side business? Is the setup/cost worthwhile for me and will it help me increase my profits using deductions? - - BASIC INFO Married 2 kids HHI = ~175k/year 0 debt I am a personal trainer and make ~40-45k/year. Over the last year I've created a side "nutrition coaching" business. Right now this is all based within current company A. For example, in company A, I have 21 clients paying $99/month. I get 40% each month. $2079 x 40% = $832/month for me. This is then put on top of my training sessions and other bonuses, taxed, and I get my net income. - - My boss, who recently acquired our franchise (6 locations currently) has suggested I create my OWN LLC company, Company B...
- Sat Jul 22, 2017 9:07 pm
- Forum: Personal Consumer Issues
- Topic: Assess our possible new house purchase (update)
- Replies: 23
- Views: 3023
Re: Assess our possible new house purchase
Though I'd post a little update on what we decided. We ended up getting into a purchase agreement for the new house for 558k. Today, we accepted an offer for 440k on current home. We paid 309k in 2013 so really lucked out/my sweat equity paid off! Our house was probably one of the lowest cost in the neighborhood originally but we did a lot of. Ice upgrades, most DIY, so without spending a lot. Buyer is actually all cash and has proof of funds so that worked out really well. We were on the market for 9 days. After fees we will clear 158k of which we will use 101k (already put 10k down as earnest money) for down payment. (20%) This will give us about 57k leftover. We plan to put about 15k into savings and to build a nice buffer. The rest we w...
- Fri Jul 07, 2017 2:57 pm
- Forum: Personal Consumer Issues
- Topic: Assess our possible new house purchase (update)
- Replies: 23
- Views: 3023
Re: Assess our possible new house purchase
Yes, now as I read it more it doesn't make much sense Thanks, I updated and fixed the wording.Watty wrote:You might want to edit your original post to make that clear.uwbadgers wrote:The house would be 550k,
Going from a $400k to $550k house is much different than what your original post sounds like it was asking.
- Fri Jul 07, 2017 2:42 pm
- Forum: Personal Consumer Issues
- Topic: Assess our possible new house purchase (update)
- Replies: 23
- Views: 3023
Re: Assess our possible new house purchase
Hi Watty, please see the bolded below for my answers to some of your questions. I appreciate the feedback and thoughts. A huge question is what you are willing to give up to have the larger house. For example will you and your spouse be OK it that means that you have to skimp on vacations and retire ten years later? This is hard to officially answer, as I can't see the future, future incomes, etc. I guess we both feel that the quality of life increase for us and kids can outweigh some other aspects. I think if we need to tighten things up on occasion, or not max all possible retirement accounts, that is ok. We feel at 32/33 that having ~265k is pretty respectable and we don't have any plans of slowing down. All part of our average expenses...
- Fri Jul 07, 2017 8:50 am
- Forum: Personal Consumer Issues
- Topic: Assess our possible new house purchase (update)
- Replies: 23
- Views: 3023
Re: Assess our possible new house purchase
I do not have a 401k at my work so it's just Wife 401k and Both Roth IRA.bloom2708 wrote:Approved.
One item, 401k max should be $18k + $18k = $36K + $4k match.
Match does not count against the total you can put in. Make sure doing pre-tax 401k. Pay the tax "down the road".