Search found 15 matches

by ThriftyInvestor
Wed Apr 29, 2020 3:47 am
Forum: Personal Investments
Topic: Optimum allocation of foreign equities among taxable and tax-favored accounts to preserve foreign tax credit.
Replies: 14
Views: 1051

Re: Optimum allocation of foreign equities among taxable and tax-favored accounts to preserve foreign tax credit.

As your modeling points out, this is all very situation-specific. As mentioned in the other thread, in my particular case if I don't keep foreign QDI below 20k I will carry unused credits forward essentially forever, losing them as they "age out" after 10 years. So for me it requires a &q...
by ThriftyInvestor
Mon Apr 20, 2020 3:34 am
Forum: Personal Investments
Topic: Optimum allocation of foreign equities among taxable and tax-favored accounts to preserve foreign tax credit.
Replies: 14
Views: 1051

Re: Optimum allocation of foreign equities among taxable and tax-favored accounts to preserve foreign tax credit.

I apologize for not looking more closely. While I still haven't examined the details of your spreadsheet, the numbers that caused my comment were from Column K. It seemed very unlikely to me that $1800 of FTC would be allowed with 111k of total income and 62k of QDI/LTCG for MFJ filing status. My a...
by ThriftyInvestor
Sat Apr 18, 2020 10:11 pm
Forum: Personal Investments
Topic: Optimum allocation of foreign equities among taxable and tax-favored accounts to preserve foreign tax credit.
Replies: 14
Views: 1051

Re: Optimum allocation of foreign equities among taxable and tax-favored accounts to preserve foreign tax credit.

Thanks, David, for the tip on Turbo Tax's flexibility. In prior years I had used FreeTaxUSA and before that TaxAct. Now that deductions starting in 2018 for State and Local Taxes (SALT) have been limited to $10,000, itemizing has not yielded better than the standard deduction for married filing join...
by ThriftyInvestor
Sat Apr 18, 2020 4:15 pm
Forum: Personal Investments
Topic: Optimum allocation of foreign equities among taxable and tax-favored accounts to preserve foreign tax credit.
Replies: 14
Views: 1051

Re: Optimum allocation of foreign equities among taxable and tax-favored accounts to preserve foreign tax credit.

Thanks, Chip, for your helpful reply and insightful analyses referenced in https://www.bogleheads.org/forum/viewtopic.php?f=1&t=211120 . Several authors in the referenced post above lament the inconsistencies among various online tax-preparation software in the form 1116 calculations, a lament I...
by ThriftyInvestor
Sat Apr 18, 2020 4:21 am
Forum: Personal Investments
Topic: Optimum allocation of foreign equities among taxable and tax-favored accounts to preserve foreign tax credit.
Replies: 14
Views: 1051

Optimum allocation of foreign equities among taxable and tax-favored accounts to preserve foreign tax credit.

***4/20/2020 START EDIT BY ORIGINAL POSTER*** My apologies to any previous and future readers - as Chip noted below, there is indeed an error in the spreadsheet. I have corrected it in a response below dated 4/20/2020. Unfortunately, the error makes much of the rest of my post inaccurate. You may wi...
by ThriftyInvestor
Wed Jun 05, 2019 2:18 am
Forum: Personal Finance (Not Investing)
Topic: Foreign Tax Credit Limitation Explained
Replies: 12
Views: 1305

Re: Foreign Tax Credit Limitation Explained

Care to share the spreadsheet you created? One of the "problems" with form 1116 is that it is a multi-purpose form. For many taxpayers, much of the form doesn't apply. For forms like this, the first thing I do is skim the instructions quickly, crossing out sections that clearly don't appl...
by ThriftyInvestor
Mon Jun 03, 2019 2:35 am
Forum: Personal Finance (Not Investing)
Topic: Please help, foreign tax credit
Replies: 25
Views: 1820

Re: Please help, foreign tax credit

Foreign Tax Credit Limitation Explained - Analysis: Once Foreign Income Exceeds $20,000, Credit is Markedly Limited. I too had a dramatic reduction in my foreign tax credit in 2018 after many years with no limitation. After much browsing on the IRS website, I found some references that help explain ...
by ThriftyInvestor
Mon Jun 03, 2019 2:29 am
Forum: Personal Finance (Not Investing)
Topic: Foreign Tax Credit Limitation Explained
Replies: 12
Views: 1305

Foreign Tax Credit Limitation Explained

Foreign Tax Credit Limitation Explained - Analysis: Once Foreign Income Exceeds $20,000, Credit is Markedly Limited. Regarding post: https://www.bogleheads.org/forum/viewtopic.php?t=278789 I too had a dramatic reduction in my foreign tax credit in 2018 after many years with no limitation. My only fo...
by ThriftyInvestor
Fri Apr 12, 2019 3:17 am
Forum: Personal Finance (Not Investing)
Topic: TaxAct problems? Anyone have success with a return which includes "backdoor" Roth reporting?
Replies: 62
Views: 5247

Re: TaxAct problems? Anyone have success with a return which includes "backdoor" Roth reporting?

FreeTaxUSA workaround for inherited IRA minimum required distribution (MRD) with backdoor Roth (2018 tax year returns): If you have an inherited traditional IRA with NO BASIS and an owned traditional IRA nondeductible contribution converted to a Roth IRA, FreeTaxUSA will not correctly generate form ...
by ThriftyInvestor
Thu May 24, 2018 11:40 pm
Forum: Personal Finance (Not Investing)
Topic: PSA: Schwab International ETFs: 1099-DIV revisions coming [Updated]
Replies: 19
Views: 3134

Re: PSA: Schwab International ETFs: 1099-DIV revisions coming [Updated]

2. Schwab 1/23/2018 letter for FNDF ....A. "$0.7053 Amount of Net Investment Income Distribution (per share)" ....B. "3.7841% Percentage of Net Investment Income Distribution Reclassified as Return of Capital or Other Capital Source" ....C. "$0.0267 Amount of Net Investment...
by ThriftyInvestor
Sun May 20, 2018 2:43 am
Forum: Personal Finance (Not Investing)
Topic: Treatment of interest earned in 401k master account before allocation to participant
Replies: 0
Views: 666

Treatment of interest earned in 401k master account before allocation to participant

I have a two questions on how interest earned in my 401k Trust non-taxable master account affects my taxes and accounting. First, specifically, is the tax basis based upon transactions from my business account to the 401k master account, or from the 401k master account to the participant accounts? H...
by ThriftyInvestor
Sun May 20, 2018 1:28 am
Forum: Personal Finance (Not Investing)
Topic: PSA: Schwab International ETFs: 1099-DIV revisions coming [Updated]
Replies: 19
Views: 3134

Re: PSA: Schwab International ETFs: 1099-DIV revisions coming

Analyzing the data: 12/22/2017 sum of SCHF distributions divided by 12/22/2017 total shares owned before reinvestment =$0.8008/share matching that reported on notice 19(a). $0.0835/share notice 19(a) "amount of net investment income distribution reclassified as return of capital or other capit...
by ThriftyInvestor
Wed Apr 04, 2018 7:12 pm
Forum: Personal Investments
Topic: Return of Capital for Schwab ETF's
Replies: 17
Views: 2404

Re: Return of Capital for Schwab ETF's

Return of Capital or Other Capital Source Distribution = Foreign Tax Paid

There is another more recent post here:

viewtopic.php?t=241427
by ThriftyInvestor
Wed Apr 04, 2018 7:03 pm
Forum: Personal Finance (Not Investing)
Topic: PSA: Schwab International ETFs: 1099-DIV revisions coming [Updated]
Replies: 19
Views: 3134

Re: PSA: Schwab International ETFs: 1099-DIV revisions coming

Return of Capital or Other Capital Source Distribution = Foreign Tax Paid I have a Schwab taxable account in which I own SCHF. 1/23/2018 received 19(a) notice for first time ever despite owning this fund for years. 1099-Div hardcopy and online copy as of today 4/4/2018 are both dated 1/26/2018, no r...
by ThriftyInvestor
Sun Mar 26, 2017 3:48 am
Forum: Personal Investments
Topic: Optum Bank HSA using Admiral shares on Vanguard funds
Replies: 32
Views: 12147

Re: Optum Bank HSA using Admiral shares on Vanguard funds

I use HSA Bank to invest through TDAmeritrade, even though my employer uses HealthEquity and covers all fees. I found that if I leave 0 cash balance at HSABank, I am only charged $3 monthly investment fee, no $2.50 monthly maintainance fee. If you leave a zero cash balance at HSABank, how does HSAB...