Search found 101 matches

by Nutmeg
Thu Jun 14, 2018 5:42 pm
Forum: Personal Finance (Not Investing)
Topic: Special Needs Trust
Replies: 20
Views: 1344

Re: Special Needs Trust

The trust for the child with special needs is for the most part the same as the trust for the child without special needs. The difference is that, depending on the nature of the disability, the child with special needs may have a lesser degree of control (or no control at all) over his/her trust. W...
by Nutmeg
Wed Jun 13, 2018 4:23 pm
Forum: Personal Consumer Issues
Topic: Vacation insurance when you have sick elderly family
Replies: 11
Views: 954

Re: Vacation insurance when you have sick elderly family

If you choose to buy trip insurance, be sure to read the terms very carefully. Some policies will not be available to you if too much time has passed since you made your initial purchase. Some do not cover preexisting conditions, which could mean that you would not be insured if you must interrupt y...
by Nutmeg
Sun Jun 10, 2018 9:11 pm
Forum: Personal Finance (Not Investing)
Topic: Gift to Son and Effect on Gift Tax
Replies: 35
Views: 3162

Re: Gift to Son and Effect on Gift Tax

If the OP wishes to pay off the student loans, he and his spouse can give the son and the son’s wife $30,000, which together with the $20,000 already given this year equals $50,000. That amount is less than the $60,000 amount that a married couple can give another married couple without having to f...
by Nutmeg
Sun Jun 10, 2018 8:55 pm
Forum: Personal Consumer Issues
Topic: Found an FSBO home for sale. How to avoid Realtor?
Replies: 42
Views: 3345

Re: Found an FSBO home for sale. How to avoid Realtor?

I have used a buyer‘s agent for each of the houses I have purchased, and I believe that they added value. I particularly think it is important to use a buyer‘s agent when moving to a new area. Buyers‘ agents have informed me about the new area, helped me assess the value of the house, referred me to...
by Nutmeg
Sun Jun 10, 2018 8:21 pm
Forum: Personal Consumer Issues
Topic: Foreign language immersion daycare
Replies: 50
Views: 2543

Re: Foreign language immersion daycare

It is understandable that the OP wants to make the best choices for the baby’s future. However, I think it is important to consider what the child needs most in life. As the parent of two young adults, I speak with some experience when I say that the child’s greatest need is to have loving caregiver...
by Nutmeg
Sun Jun 10, 2018 7:59 pm
Forum: Personal Finance (Not Investing)
Topic: Gift to Son and Effect on Gift Tax
Replies: 35
Views: 3162

Re: Gift to Son and Effect on Gift Tax

If the OP wishes to pay off the student loans, he and his spouse can give the son and the son’s wife $30,000, which together with the $20,000 already given this year equals $50,000. That amount is less than the $60,000 amount that a married couple can give another married couple without having to fi...
by Nutmeg
Sat Jun 02, 2018 9:25 am
Forum: Personal Finance (Not Investing)
Topic: Gift tax exclusion - gifting to multiple people who then gift to one person?
Replies: 19
Views: 1840

Re: Gift tax exclusion - gifting to multiple people who then gift to one person?

If someone wants to gift $150k to one person, he would need to report it because it is in excess of $15k. But, could that person gift to 10 different people $15k each, and then those people immediately turn around and gift $15k to person X, and then the gift falls within the exclusion limit? Or is ...
by Nutmeg
Sat Jun 02, 2018 9:20 am
Forum: Personal Finance (Not Investing)
Topic: Leave Job (Philly) and move To Arizon (Phoenix)?
Replies: 67
Views: 4917

Re: Leave Job (Philly) and move To Arizon (Phoenix)?

Absent other circumstances, someone should not quit a job with excellent advancement opportunities after having worked there one month to take a job across the country, no matter how desirable the location, for a $5000/year raise. Good reasons to leave a job after only one month are: To escape impos...
by Nutmeg
Fri Jun 01, 2018 9:06 pm
Forum: Personal Finance (Not Investing)
Topic: Just bought condo; crazy to take out HELOC to buy a parking spot?
Replies: 28
Views: 2758

Re: Just bought condo; crazy to take out HELOC to buy a parking spot?

I am not sure how you should finance the purchase of a parking spot. However, I think you should consider the concept of imputed interest for tax purposes on the loan from your partner’s parents. It is possible that an exception applies. This article explains the situation better than I can: https:/...
by Nutmeg
Sat May 19, 2018 2:48 pm
Forum: Personal Finance (Not Investing)
Topic: Helping Adult Children (but not too much)
Replies: 152
Views: 12406

Re: Helping Adult Children (but not too much)

Our daughter graduates college this weekend. She's debt free, owns her 3 year-old car outright, has about $3K in a Roth-IRA plus another $1K in savings and an "okay" (money-wise) job lined up. So she off to a decent start. Until now we've subsidized her through car insurance, mobile phone, grocerie...
by Nutmeg
Fri May 18, 2018 10:39 pm
Forum: Personal Finance (Not Investing)
Topic: How to find a realtor after relocating
Replies: 7
Views: 670

Re: How to find a realtor after relocating

We'll be moving from CA to TX next month and living in temporary housing initially. We're looking to buy a house over the summer. But how to get started? These days it's easy enough to browse the online listings and find a house but it would be nice to work with a local realtor who knows the area a...
by Nutmeg
Fri May 18, 2018 10:08 pm
Forum: Personal Finance (Not Investing)
Topic: Home Loan from Parents
Replies: 24
Views: 2292

Re: Home Loan from Parents

Also, are you going to lose the deductibility of the interest if you go this route? The mortgage interest paid by the borrower to the parents is still deductible to the same extent as mortgage interest paid to a bank would be. The interest received by the parents should be included in their income ...
by Nutmeg
Thu May 17, 2018 3:12 pm
Forum: Investing - Help with Personal Investments
Topic: Do I pay towards my mortgage or invest?
Replies: 45
Views: 4685

Re: Do I pay towards my mortgage or invest?

OP, I would be in no rush to pay down a 3.875% fixed loan. You may soon be able to purchase intermediate duration CDs paying more than 3.875%. Look at your overall financial situation: 1) Do you have adequate cash reserves/emergency fund? 2) Are you fully funding your 401k/403b/457/IRA/Roth IRAs? 3...
by Nutmeg
Thu May 17, 2018 2:43 pm
Forum: Personal Consumer Issues
Topic: Departed employee & final pay check
Replies: 9
Views: 1211

Re: Departed employee & final pay check

... "Benefit premiums are not prorated for the last pay period you were actively at work. Your final paycheck will include benefit deductions for the entire two-week pay period that includes your last day of employment. Your health and welfare coverage ends as of your last day of employment at 11:5...
by Nutmeg
Wed May 16, 2018 8:27 pm
Forum: Personal Consumer Issues
Topic: sharing cars with two kids home from college?
Replies: 25
Views: 1582

Re: sharing cars with two kids home from college?

When my youngest went off to college last fall, it seemed to make sense to sell our repair-prone, old minivan as opposed to letting it sit/depreciate in our driveway. The kids will be home from college in a week, they're both working locally and will need a car to get to/from work and around town. ...
by Nutmeg
Fri May 04, 2018 2:44 pm
Forum: Personal Finance (Not Investing)
Topic: Signed Car Lease, Dealer calls later asking for a CO-SIGNER despite excellent credit
Replies: 180
Views: 17777

Re: Signed Car Lease, Dealer calls later asking for a CO-SIGNER despite excellent credit

I have skimmed the responses and haven’t seen a description by the OP of the contract terms. OP: If you haven’t done so already, I highly recommend that you read the contract before doing anything else (including before talking to the dealership again). I would look for anything that addresses a req...
by Nutmeg
Sun Apr 29, 2018 7:37 pm
Forum: Personal Finance (Not Investing)
Topic: How To Handle Auto Accident Insurance Company Letter
Replies: 16
Views: 2205

Re: How To Handle Auto Accident Insurance Company Letter

An accident victim has no obligation to respond to the other driver‘s insurance company on that company‘s timetable. I would wait until you are certain of the extent of your wife‘s injuries, if any, before communicating with the insurance company about them. It is not clear from the information prov...
by Nutmeg
Sun Apr 15, 2018 7:44 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Lot ID Method?
Replies: 9
Views: 508

Re: Tax Lot ID Method?

I do not have specific tax ID lots. Even if you don’t have this information already, it might be possible to construct a chart of information as to the cost basis for each acquisition date using your statements and publicly-available information. I have done this for shares owned by a relative who ...
by Nutmeg
Mon Apr 09, 2018 11:07 am
Forum: Personal Finance (Not Investing)
Topic: Cash flow problems - best way to handle?
Replies: 134
Views: 8427

Re: Cash flow problems - best way to handle?

Note that the tax reform bill has lengthened the period of time you have to pay back a loan from your 401(k). In the past, you had only 60 days after changing jobs to do so without penalty. Now, you have until October of the following year. https://www.forbes.com/sites/ashleaebeling/2018/01/16/new-t...
by Nutmeg
Sun Apr 08, 2018 10:50 pm
Forum: Personal Finance (Not Investing)
Topic: Kiddie Tax and 50+% Self Supporting?
Replies: 8
Views: 690

Re: Kiddie Tax and 50+% Self Supporting?

As to the support issues, you might find this article helpful: https://www.thetaxadviser.com/issues/2010/aug/nichols-aug-2010.html As to the K-1, you might want to consult with your CPA to ensure that you are clear as to its purpose. I am writing in response to this section: However, I don't need to...
by Nutmeg
Sun Apr 08, 2018 8:28 pm
Forum: Personal Finance (Not Investing)
Topic: Kiddie Tax and 50+% Self Supporting?
Replies: 8
Views: 690

Re: Kiddie Tax and 50+% Self Supporting

thanks for the link. My tax pro says for a simple trust, the 65 day rule does not apply - we have all the way until tax filing. Thanks for the explanation; my trust is a complex trust, so the 65-day rule applies. Other considerations in your case include in which year tuition and fees for your daug...
by Nutmeg
Sun Apr 08, 2018 6:15 pm
Forum: Personal Finance (Not Investing)
Topic: HSA Employer Contributions reduce FICA/Medicare Income!
Replies: 2
Views: 284

Re: HSA Employer Contributions reduce FICA/Medicare Income!

Yes, HSAs help reduce taxes and are excellent retirement vehicles. Whether investing a particular amount in an HSA is better than investing that amount in a 401(k) depends on the amount of the employer match for the 401(k) and whether the employee is eligible for the saver's credit. As one example, ...
by Nutmeg
Sun Apr 08, 2018 5:40 pm
Forum: Personal Finance (Not Investing)
Topic: Kiddie Tax and 50+% Self Supporting?
Replies: 8
Views: 690

Re: Kiddie Tax and 50+% Self Supporting?

I have been in this situation. I recommend completing the IRS worksheet to determine whether your daughter actually paid more than 50 percent of her support. https://apps.irs.gov/app/vita/content/globalmedia/teacher/worksheet_for_determining_support_4012.pdf Your statement about distributing trust i...
by Nutmeg
Tue Apr 03, 2018 11:34 am
Forum: Personal Finance (Not Investing)
Topic: Deducting Prepaid Property Taxes
Replies: 13
Views: 1786

Re: Deducting Prepaid Property Taxes

I am still seeking definitive answers on this issue, and am posting additional information I have found in hopes that it will help others who are deciding which approach to take. A recent WSJ article summarizes the debate: https://www.wsj.com/articles/the-hot-debate-can-you-deduct-prepaid-property-t...
by Nutmeg
Tue Mar 20, 2018 7:47 pm
Forum: Personal Finance (Not Investing)
Topic: Baby on the way - Will/Trust needed?
Replies: 9
Views: 879

Re: Baby on the way - Will/Trust needed?

I am 28 years old, married, and have a baby on the way. I am hoping someone can help guide me on the right path to make sure my wife and kids are protected and there is a plan in place if something were to happen to me. What type of documents do I need? Will? Power of Attorney (financial and health...
by Nutmeg
Tue Mar 20, 2018 11:51 am
Forum: Personal Finance (Not Investing)
Topic: Accidental Real Estate Owner... Now What?
Replies: 15
Views: 1989

Re: Accidental Real Estate Owner... Now What?

OP--My experience is that many counties have online databases that can be searched to find out who the true owner of real property is. You don't necessarily have to wait for a title company to tell you. Perhaps you can search the county records and pull up a copy of the deed to make sure whether you...
by Nutmeg
Mon Mar 19, 2018 8:27 pm
Forum: Personal Finance (Not Investing)
Topic: Deducting Prepaid Property Taxes
Replies: 13
Views: 1786

Re: Deducting Prepaid Property Taxes

I just learned that several members of Congress have contacted the IRS to request clarification on the deductibility of prepaid property taxes. http://www.dontmesswithtaxes.com/2018/03/lawmakers-seek-irs-property-tax-deduction-clarification.html I have not filed my tax forms yet, and am seeking addi...
by Nutmeg
Sun Mar 18, 2018 12:17 pm
Forum: Personal Finance (Not Investing)
Topic: Overall financial picture - Need Advice
Replies: 18
Views: 2471

Re: Overall financial picture - Need Advice

OP--you stated that you cannot sell the rental houses because they are being leased. I wonder whether you are certain that that is correct, and what the basis for your statement is. A relative bought a rental property as an investment specifically because the tenants had rented it for 30 years alrea...
by Nutmeg
Sat Mar 17, 2018 5:29 pm
Forum: Personal Finance (Not Investing)
Topic: Say I Can Scrape Up Some Money, Then What Do I Do?
Replies: 15
Views: 1261

Re: Say I Can Scrape Up Some Money, Then What Do I Do?

First, I would make sure that you can make the required minimum payments on each of the loans. Then, I recommend paying down your HELOC, which beginning next month will have the highest interest rate. While there might be a psychological benefit in paying off the smaller, no-interest loans, doing so...
by Nutmeg
Sat Mar 17, 2018 5:14 pm
Forum: Personal Finance (Not Investing)
Topic: Special Needs Trust Taxes and Distributions
Replies: 15
Views: 1452

Re: Taxes for Special Needs Trusts

To the extent you have DNI, all distributions to him will carry out income to him whether you pay it from income or principal. As for SSA, I can’t answer that question but I assume they would treat it as any other income. Gill I believe that the assumption that the SSA will treat income from a Spec...
by Nutmeg
Sat Mar 17, 2018 5:07 pm
Forum: Personal Finance (Not Investing)
Topic: Special Needs Trust Taxes and Distributions
Replies: 15
Views: 1452

Re: Special Needs Trust Taxes and Distributions

I'm the Trustee of a 3rd party Special Needs Trust for the benefit of my brother (set up by my dad and funded with my brother's portion of my dad’s estate as directed). 2017 was the first full year the Trust has any reportable income so I want to file the Taxes correctly. I may end up hiring a prof...
by Nutmeg
Fri Feb 16, 2018 5:53 pm
Forum: Personal Finance (Not Investing)
Topic: Deducting Prepaid Property Taxes
Replies: 13
Views: 1786

Re: Deducting Prepaid Property Taxes

However, the statement didn't give a legal basis for the conclusion, and several tax experts have recently written that the law doesn't support that conclusion. Before the IRS statement came out Bogleheads reached the same conclusion. I would go with the official written guidance and not start maki...
by Nutmeg
Sun Feb 11, 2018 3:17 pm
Forum: Personal Finance (Not Investing)
Topic: Legal Docs
Replies: 16
Views: 1471

Re: Legal Docs

I am a retired attorney, but I didn't practice in the estate area. I am very frugal. I still paid attorneys at least three times to prepare wills and associated documents. Each time, I learned more about what I didn't previously know. Using an attorney familiar with your state's laws is particularly...
by Nutmeg
Sun Feb 11, 2018 2:25 pm
Forum: Personal Finance (Not Investing)
Topic: moving my mother's "escape" fund to me
Replies: 28
Views: 3502

Re: moving my mother's "escape" fund to me

Your post brings up several questions and comments. Exactly what is the current investment vehicle for the funds? Is your aunt on board with this plan? Is she married? Is there a possibility that your mother will want the funds back later for a future escape, or does your mother intend this to be a ...
by Nutmeg
Sat Feb 03, 2018 9:25 pm
Forum: Personal Finance (Not Investing)
Topic: [Flawed?] Paying off mortgage in 5 years
Replies: 36
Views: 2873

Re: [Flawed?] Paying off mortgage in 5 years

The primary flaw in the Clayton Morris example is that it assumes an outstanding mortgage loan of $100,000, a monthly after-tax paycheck of $3,000, and total monthly expenses including the mortgage payment of only $250, an impossible combination. Well, sure, if I had an extra $2,750 per month to spe...
by Nutmeg
Thu Feb 01, 2018 9:26 pm
Forum: Investing - Help with Personal Investments
Topic: Question about switching to SpecID at Vanguard
Replies: 5
Views: 542

Re: Question about switching to SpecID at Vanguard

This Bogleheads Wiki article gives good, detailed information about using specific Identification as a cost basis method at Vanguard:

https://www.bogleheads.org/wiki/Specifi ... _of_shares
by Nutmeg
Wed Jan 31, 2018 11:35 pm
Forum: Personal Consumer Issues
Topic: Should I Do My Own Taxes Or Pay A CPA $500?
Replies: 65
Views: 6504

Re: Should I Do My Own Taxes Or Pay A CPA $500?

I have used a CPA (paid for and chosen by an employer) some years and done my own taxes some years. The CPA firms were both nationally-known. With both firms, it took me more time to explain why they had made mistakes than it would have to do my taxes correctly in the first place. One firm made the ...
by Nutmeg
Wed Jan 31, 2018 2:48 am
Forum: Personal Finance (Not Investing)
Topic: Tax help - DAF contribution
Replies: 31
Views: 2403

Re: Tax help - DAF contribution

OP--You might find this summary to be helpful: https://www.bogleheads.org/wiki/Specific_identification_of_shares Pigeye Brewster stated that noncovered shares are accounted for at average cost even when using specific ID. While It might be true that a mutual fund would account for them at average c...
by Nutmeg
Tue Jan 30, 2018 11:12 pm
Forum: Personal Finance (Not Investing)
Topic: First time home buyer- Tips?
Replies: 18
Views: 2312

Re: First time home buyer- Tips?

Having purchased five houses, I have always found my real estate agent before a lender, and have sought lender recommendations from my agent.
by Nutmeg
Tue Jan 30, 2018 11:01 pm
Forum: Personal Finance (Not Investing)
Topic: Tax help - DAF contribution
Replies: 31
Views: 2403

Re: Tax help - DAF contribution

OP--You might find this summary to be helpful: https://www.bogleheads.org/wiki/Specific_identification_of_shares Pigeye Brewster stated that noncovered shares are accounted for at average cost even when using specific ID. While It might be true that a mutual fund would account for them at average co...
by Nutmeg
Wed Jan 24, 2018 8:00 pm
Forum: Personal Finance (Not Investing)
Topic: Deducting Prepaid Property Taxes
Replies: 13
Views: 1786

Deducting Prepaid Property Taxes

Should I deduct prepaid property taxes on my 2017 taxes? I plan to follow the law, but the law appears unclear. The IRS stated in December 2017 (after I had already made the prepayments) that property taxes aren't deductible in situations like mine where the state will accept prepayments but assessm...
by Nutmeg
Wed Jan 24, 2018 5:24 pm
Forum: Investing - Help with Personal Investments
Topic: Not working spouse IRA question
Replies: 7
Views: 616

Re: Not working spouse IRA question

Your wife can probably not deduct a contribution to a traditional IRA because there are income limitations for deducting IRAs when the spouse is contributiing to a workplace retirement plan. The relevant number is your modified AGI. https://www.irs.gov/retirement-plans/plan-participant-employee/201...
by Nutmeg
Wed Jan 24, 2018 5:10 pm
Forum: Investing - Help with Personal Investments
Topic: First experience with Financial Advisor
Replies: 18
Views: 2230

Re: First experience with Financial Advisor

Selling shares and sending the dividends to the cash account are the same. So he is not so far off base there. If you are referring to tax effects, this is not true in all cases. Selling shares and choosing to have dividends distributed as cash rather than reinvested would not be the same for tax p...
by Nutmeg
Wed Jan 24, 2018 12:44 pm
Forum: Investing - Help with Personal Investments
Topic: Not working spouse IRA question
Replies: 7
Views: 616

Re: Not working spouse IRA question

I am working full time and I have a side job as well So I have 401k from full time job company and traditional IRA and SEP IRA from side job My AGI should be between 130-160K, I am not sure exactly but should be in this range My wife is not working so can I put in $5,500 for her in traditional IRA?...
by Nutmeg
Wed Jan 24, 2018 12:07 pm
Forum: Personal Finance (Not Investing)
Topic: Support test for college student filing Indepently
Replies: 32
Views: 1142

Re: Support test for college student filing Indepently

My son is a high school senior and will be attending college in the fall. We have transferred appreciated stocks to him that will pay for his college and would like for him to qualify NOt as a dependent on our tax return so he can claim the AOTC as well as the standard deduction. Filing separate is...
by Nutmeg
Sun Jan 21, 2018 7:04 pm
Forum: Personal Consumer Issues
Topic: return expensive 3 year old's eye glasses?
Replies: 22
Views: 1943

Re: return expensive 3 year old's eye glasses?

Hi all, I'm looking for some advice and wisdom here. I'm well aware that I could have done some due diligence and avoided appearing foolish with this. All the same, I'd appreciate your input. Thank you! The situation: My wonderful 3 1/2 year old son was just prescribed glasses by the best pediatric...
by Nutmeg
Wed Jan 17, 2018 9:56 pm
Forum: Personal Consumer Issues
Topic: London/Paris Trip Questions
Replies: 41
Views: 2045

Re: London/Paris Trip Questions

Hi there! I have a few questions that I hope you can help me with. I am planning a 10-day trip to London and Paris this June with my family (2 adults & a 6 year old). We will split the time equally between the two locations. I have never been to Europe and literally know nothing about it. I did som...
by Nutmeg
Wed Jan 17, 2018 12:07 pm
Forum: Personal Finance (Not Investing)
Topic: [Virginia] Transfer on Death Deeds .. New Husband?
Replies: 42
Views: 1936

Re: [Virginia] Transfer on Death Deeds .. New Husband?

OP--A prenuptial agreement could address many problems, and could be prepared in conjunction with the new wills that both members of the happy couple should prepare anyway. Note that a prenup must be signed before the wedding, and the wills can be prepared in advance but should be signed after the w...
by Nutmeg
Thu Jan 11, 2018 12:22 pm
Forum: Personal Finance (Not Investing)
Topic: Pay off student loans after kid graduates?
Replies: 35
Views: 2398

Re: Pay off student loans after kid graduates?

We have a son who is nearing college graduation, after needing a few extra semesters. We supported him with an ample 529, which only lasted him through 3 years as he attended an out of state school and didn’t pursue residency status as fast as he should have. He knew the money ran out and applied f...