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deathb4disco

EmergDoc wrote:Hmmm....another 100% equity allocation thread. The last time I saw this many was early 2008.

deathb4disco

Our combined income last year was about 500k and so it would be nice to reduce the amount we paid on taxes. The fee for this service was based on the total net worth and would run us about 6k. I agree with EmergDoc. As a CPA, I regularly do tax planning for my clients. However, my fees are based so...

deathb4disco

The Complete Tightwad Gazette:

http://www.amazon.com/The-Complete-Tigh ... 0375752250

deathb4disco

Gross.

deathb4disco

Dan999 wrote:Congrats.
That is a major accomplishment and be proud of yourself.

Ditto.

I passed it about twenty years ago. It's great to get that behind you. Celebrate!

deathb4disco

markfaix wrote:
billern wrote:Obviously his associate did all the work, and the head CPA reviewed it only briefly.

That's SOP at every CPA firm (unless he's a sole proprietor.) At this point, I'd point out the errors and let the guy fix it. If you're still not satisfied, you've got a year to find someone else.

deathb4disco

billern wrote:As a CPA, I have to agree. OP, I'd suggest using a CPA this year, especially since this is your first year in this partnership.

This CPA also agrees.

deathb4disco

After that asset was disposed of (I did well -- put in all my 70K of savings and got out zero but I did have tax losses), I inquire whether there is a K1 for any new investment I consider. [/quote] Smart move. I had a client who had a pretty straightforward return. Then, he invested in a hedge fund...

deathb4disco

I read the book this weekend. The author makes some good points, but she is an unabashed fan of both Teresa Ghilarducci and the Occupy Wall Street movement. I am a fan of neither. I don't want to get into politics, so I'll just leave it at that.

deathb4disco

Peter Foley wrote:... $250 is a lot to spend for data entry and a little oversight.

So, I guess the $18,000 I billed a guy last year is out of the question.

deathb4disco

Good point. But my question remains. Is it possible to distribute losses to a K-1? I always thought the losses needed to be carried over in the entity that is sending out the K-1. For example, when a mutual fund has losses, those losses remain in the fund... they're never distributed to you. K-1's ...

deathb4disco

Do you think this situation is tricky enough that you recommend hiring a professional? Speaking as a professional, yes. It sounds like it might be a passive activity, which means the losses could be limited. Also, does she have enough basis to take the losses? That's another question for the pro. T...

deathb4disco

We chose advisors before through personal referrals - that didn't work out so well ... Interesting. At my firm, I'd say at least 90% of our new business comes through referrals. Here's another option: call one of the big firms and ask them to suggest a CPA. Lots of people (like me) leave the big fi...

deathb4disco

Fishing!

deathb4disco

Good luck to you on the exam! I passed it almost twenty years ago. What a mind-crushing experience that was!

deathb4disco

I would consider a single member limited liability company (SMLLC.) It is a disregarded entity for tax purposes (meaning it doesn't file its own tax return.) It's income and expenses would be reported on Sch C of your 1040. The S corp is a good option, but you will have to file a separate return for...

deathb4disco

I know lots of CPAs who also have the CFP cert or the PFS designation. I don't see a problem with it unless you just want another opinion.

deathb4disco

The definitions for investment value are vague and/or too complicated for me to understand. It is not so much income based, but based on future worth and it's worth to the potential buyer. I just checked with an ABV guy in my office. He agreed that the investment method tends to result in a higher ...

deathb4disco

Bongleur wrote:I'm thinking that I really should shop around ???

Without actually seeing your return, it's hard to tell, but that does not seem excessive to me. (I'm a CPA.) FWIW, I bill a couple of clients approximately $15,000 per year for their returns.

deathb4disco

I paid $5,000 for Invisalign, so that seems high.

deathb4disco

dgm wrote:I was curious about what a reasonable rate for tax prep is for a personal/family tax prep person.

Speaking as a professional, it all depends. $600 could be a bargain on some returns. On others, it could be too high.

deathb4disco

doclotek wrote:if I am the only employee and owner does an a LLC still make sense?

That's called a "single member LLC", and you don't have to file a separate return for them. Just report the income on Sch C of your 1040.

deathb4disco

baw703916 wrote:In the case of your client, his human capital is already very intertwined with the stock market. So that would probably be a good reason for having even less invested in equities than his net worth would imply.

Agreed. He's semi-retired now.

deathb4disco

bottlecap wrote:He has absolutely no need to take risk.

Exactly.

I have a client whose net worth is in the $50 million range. He's a Wall Street investment guy and has maybe 10% in the stock market.

deathb4disco

Many states provide the same legal protection to single member LLCs. Being a disregarded entity for tax purposes does not negate the liability protection of an LLC as long as your state recognizes single member LLCs. True, but I read the OP as saying he would own the entity equally with his wife. T...

deathb4disco

IRS says a husband and wife "qualified joint venture" can choose not to be taxed as a partnership and therefore avoid that complexity. You can, but I've never seen it done in 25+ years as a CPA. I just checked with two other CPAs, and they'd never seen it done, either. If you make the election, you...

deathb4disco

tfb wrote:... I heard LLC is simpler but S-Corp has the advantage of potential savings on payroll taxes.

Partnership tax is extremely complex, but you're correct on the payroll tax savings with the S-corp.

deathb4disco

Random thoughts, starting with this: I am not exactly sure how to pay ourselves. You have to take "guaranteed payments" which are subject to self-employment tax. Members in an LLC cannot take salaries. LLC's are very flexible because they're taxed as partnerships. (I'm assuming you're not electing t...

deathb4disco

I don't think there is anything quite like that available. There is definitely professional tax planning software available. I have always used one called BNA. It's a standard professional package, and you can run all kinds of scenarios with it. If you're willing to pay, I'm sure a local tax profes...

deathb4disco

southerndoc wrote:Would you recommend filing an amendment for prior year's returns since I didn't claim the K-1 previously?

It sounds like your CPA was correct. If the prior year's K-1 showed no income or deductions, there's no need to amend.

deathb4disco

It lists domestic partner, limited partner or other LLC member. Profit is 0.6%, ending 0.62%. Nonrecourse 53, beginning capital account 100, ending capital account 100. Lines 1-19 are blank and 20 only has Y* for a code with "STMT" written. Hello, southerndoc. Southerncpa, here. :) If lines 1-19 ar...

deathb4disco

... I am more interested in learning to itemize deductions. For most people, that is not an issue until they buy a home. Until you do that, I wouldn't agonize too much over the thought that you're missing deductions you're entitled to. As a CPA, I agree with the other suggestions on Pub 17. I think...

deathb4disco

I write 5-6 per month. I'm old fashioned.

deathb4disco

FWIW, the managing partner of my firm does not have an accounting degree. (His degree is in finance.) However, he did have enough accounting hours to sit for the exam.

deathb4disco

Can you take 24 hours of accounting courses without majoring in accounting? I had 24 hours as an undergrad, but I was an accounting major. I would check with the accounting departments of whatever schools you're considering.

deathb4disco

bhead33 wrote:I am taking the standard deduction - not much to itemize. Turbox Tax says with all that that I am not subject to AMT.

I don't understand. How can you have that much income and live in Illinois and not be able to deduct state income tax?

deathb4disco

bhead33 wrote:Turbo tax says I am not subject to AMT ...

Interesting. You're itemizing, right? I'm asking because the tax deduction is what kicks most people into AMT.

deathb4disco

Terrell Owens is obviously not a Boglehead:

http://thebiglead.com/index.php/2012/01 ... topbuttons

deathb4disco

Looking forward to the new book. Taleb's an interesting guy, and you never know what you'll learn from him. He mentioned an economist named Art De Vany in one of his books, but the comment was in reference to diet and exercise, not economics. I subsequently read up on De Vany and bought his book: ht...

deathb4disco

There is often a difference between tax rates and what a corporation pays in taxes. The statutory federal income tax rate for big American companies is 35%. But a study by the Citizens for Tax Justice and the Institute on Taxation and Economic Policy, two Washington, DC-based think-tanks, has asses...

deathb4disco

Here's commentary on what most people say when you ask them their investment performance: My Return Beat the Market (or Not) It's not easy converting friends and family into Bogleheads when they're all doing so well. :wink: Rick Ferri Rick, I read Serious Money when it first came out and am still u...

deathb4disco

I have a client with a 10-figure portfolio. He invests pretty conservatively: lots of high-grade muni bonds and cash. Maybe 10% is in stocks.

deathb4disco

Can you point me to where I can read more about these sourced income rules? The concept is called "nexus". If you Google "income tax nexus", you can read for days. Every state has its own idiosyncrasies, though, so check out their websites for more detail. As I noted above, most people file non-res...

deathb4disco

MarkNYC wrote:
xerty24 wrote: ...the percentage of "business income" allocated to that state because it has operations in that state and the business is organized as a flow-through entity for tax purposes, such as a partnership, LLC, or S Corporation.

This is what nails most people.

deathb4disco

Yesterday I was speaking with a gun salesman at Bass Pro Shop. He said their stock of handguns is critically low and that their supplies also have record low inventories. It might take up to 3 months before the supply chain improves. People want guns, and particularly hand guns. I think this says s...

deathb4disco

Looking forward to reading it.

I'm a little behind. I just picked this one up recently:

http://www.amazon.com/Only-Guide-Youll- ... pd_sim_b_4

deathb4disco

Clark is one of the good guys. But using a razor blade for an entire year ... well, that's a little over the top. I dunno. :) I heard that tip, and I've been using the same razor for about six months now. Works great. I doubt it will last a whole year, though. Incidentally, I could have sworn I onc...

deathb4disco

hicabob wrote:He gets a bit corny and it's usually very basic but a boglehead has to like him - esp. relative to the other tv financial advisors

Agreed. I think he's much better than Dave Ramsey, but DR seems to do a better job of promoting himself.

deathb4disco

Anyone ever convinced their company to change 401k Providers or improve their investment choices? How did you do it? The company I work for employees about 2000 people so it is relatively small. My firm is only about sixty people, and our 401k has hundreds of choices (including 54 Vanguard funds.) ...

deathb4disco

... what he is talking about in todays reality (really in his reality as well, as 8 percent CD rates likely did not persist that long?). I read the book a year or two ago. A big part of his "reality" is that he spends most (if not all) of his time outside the U.S. He's a big proponent of retiring i...

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