Search found 165 matches

by viewer0
Sat Oct 24, 2020 11:47 am
Forum: Personal Investments
Topic: Long Term Capital Gains rate
Replies: 20
Views: 1887

Re: Long Term Capital Gains rate

got it. So, it is applicable to 0% CG bracket. Thankfully I am not in that category or smart enough to be in that category!
by viewer0
Sat Oct 24, 2020 11:36 am
Forum: Personal Investments
Topic: Long Term Capital Gains rate
Replies: 20
Views: 1887

Re: Long Term Capital Gains rate

Another good explainer (with outdated tax bracket numbers): https://www.kitces.com/blog/understanding-the-mechanics-of-the-0-long-term-capital-gains-tax-rate-how-to-harvest-capital-gains-for-a-free-step-up-in-basis/ Can someone explain to me how he talks about increasing the cost basis by selling a...
by viewer0
Sat Oct 24, 2020 9:25 am
Forum: Personal Investments
Topic: Long Term Capital Gains rate
Replies: 20
Views: 1887

Re: Long Term Capital Gains rate

FoolMeOnce wrote: Sat Oct 24, 2020 9:00 am Another good explainer (with outdated tax bracket numbers): https://www.kitces.com/blog/understandi ... -in-basis/
Thanks, more involved. Will go through it soon.
by viewer0
Sat Oct 24, 2020 9:24 am
Forum: Personal Investments
Topic: Long Term Capital Gains rate
Replies: 20
Views: 1887

Re: Long Term Capital Gains rate

Skeeter1 wrote: Sat Oct 24, 2020 8:39 am If this loads properly, this is a simple but interesting way to looking at CG.
https://engaging-data.com/tax-brackets/
This is fabulous; thanks
by viewer0
Sat Oct 24, 2020 6:38 am
Forum: Personal Investments
Topic: Long Term Capital Gains rate
Replies: 20
Views: 1887

Re: Long Term Capital Gains rate

kaneohe wrote: Fri Oct 23, 2020 10:20 pm CG below that threshold is taxed at 15%,
So, if my ordinary income ( from salary/ on W2) is $496599 ( ignore all deductions), Is $1 CG taxed at 15% and the rest of the CG is taxed at 20% ?
by viewer0
Fri Oct 23, 2020 9:54 pm
Forum: Personal Investments
Topic: Long Term Capital Gains rate
Replies: 20
Views: 1887

Re: Long Term Capital Gains rate

yes, for simplicity, I neglected the std deduction, but the key is there is no step function.
So, what you are saying is that CG is always added to ordinary income up to the threshold of 496600 and the rest is taxed at 20%. Correct ?
by viewer0
Fri Oct 23, 2020 9:32 pm
Forum: Personal Investments
Topic: Long Term Capital Gains rate
Replies: 20
Views: 1887

Re: Long Term Capital Gains rate

Correct, what I meant by W2 income is box 1. So, in that case, in some scenarios, when you exceed the income threshold, you can have a net income less, even if you have earned more ? e.g. if you earn $496659 ( box 1) + $1000 LTCG , you are assessed a 15% LTCG on $1000, but if you earn $496661 ( box ...
by viewer0
Fri Oct 23, 2020 9:10 pm
Forum: Personal Investments
Topic: Long Term Capital Gains rate
Replies: 20
Views: 1887

Long Term Capital Gains rate

I am getting very confused with the LTCG. I understand that for Married Filing Jointly if you earn more than $496600 (in 2020), your LTCG is taxed at 20% + 3.8% NIIT. Does that mean that if your W2 income is greater than $496600, any LTCG that you incur is taxed at 20% ?
by viewer0
Thu Oct 01, 2020 7:15 am
Forum: Investing - Theory, News & General
Topic: Consequences of Direct Listing
Replies: 6
Views: 1066

Re: Consequences of Direct Listing

Any observation on Palantir's direct listing that happened. yesterday ?
How does so many shares trade hands when so less shares are available ?
by viewer0
Sun Sep 20, 2020 12:58 pm
Forum: Personal Finance (Not Investing)
Topic: tax underpayment penalty
Replies: 32
Views: 2616

Re: tax underpayment penalty

As you said “I paid / withheld”, I’m guessing it wasn’t all withholding and as you have provided no information as to the timing of the estimate payments, we’re unable to explain further why you owed a penalty. It would be helpful if you posted the reason why there was an underpayment penalty when ...
by viewer0
Mon Sep 14, 2020 6:49 pm
Forum: Personal Finance (Not Investing)
Topic: tax underpayment penalty
Replies: 32
Views: 2616

Re: tax underpayment penalty

Just take your annual safe-harbor amount (the lower of the two) and divide it by four and that's your quarterly safe-harbor amount. Each quarter, you have to meet it by a combination of withholding and as well as estimated payments in that quarter with any excess from one quarter carrying over to t...
by viewer0
Mon Sep 14, 2020 10:38 am
Forum: Personal Finance (Not Investing)
Topic: tax underpayment penalty
Replies: 32
Views: 2616

Re: tax underpayment penalty

The issue is that estimated tax payments either need to be paid in 4 equal installments or as the income is earned AND meet a safe harbor. In other words, the safe harbor applies only to underpayment, not to the lack of timely payments. In contrast to estimated payment, withholding is assumed to be...
by viewer0
Mon Sep 14, 2020 9:51 am
Forum: Personal Finance (Not Investing)
Topic: tax underpayment penalty
Replies: 32
Views: 2616

Re: tax underpayment penalty

For 2019 tax year, I had to pay a penalty as I took a lumpsum capital gain in Q2, but did not pay estimated tax proportional to the gain. I should have paid 20% of the gain in Q3 for the Q2 gain. I think the requirement to pay estimated tax overrides 110% withholding rule.
by viewer0
Mon Sep 14, 2020 9:06 am
Forum: Personal Finance (Not Investing)
Topic: tax underpayment penalty
Replies: 32
Views: 2616

tax underpayment penalty

I know this has been covered before, but still asking. In 2019 tax year, I had to pay a penalty ( via TurboTax calculation) for not withholding enough in one quarter, although I withheld more than 110% of 2018 taxes paid. At the end I got money back from IRS, but paid a penalty as well. This year, 2...
by viewer0
Fri Aug 21, 2020 1:52 pm
Forum: Investing - Theory, News & General
Topic: Consequences of Direct Listing
Replies: 6
Views: 1066

Re: Consequences of Direct Listing

Some news today : "Up to 80% of shares will be unable to be sold on the stock market until after Palantir’s 2020 fiscal year earnings have been reported, a milestone expected in February, one of the people said. Potential sellers couldn’t sell these shares until then." Hence I would think that the a...
by viewer0
Wed Aug 19, 2020 12:51 pm
Forum: Personal Finance (Not Investing)
Topic: AMT hump and phaseout
Replies: 9
Views: 748

Re: AMT hump and phaseout

you folks are right. I did not pay any AMT in 2019 and 2018, but did pay in previous to that. I just checked my tax returns.
by viewer0
Tue Aug 18, 2020 4:26 pm
Forum: Personal Finance (Not Investing)
Topic: AMT hump and phaseout
Replies: 9
Views: 748

AMT hump and phaseout

Hi I am trying to understand where the AMT hump ends , after which it would be beneficial for me to accelerate income until the next higher tax bracket. I found the following in taxfoundation.org : "In 2020, the 28 percent AMT rate applies to excess AMTI of $197,900 for all taxpayers ($98,950 for ma...
by viewer0
Thu Aug 13, 2020 12:38 pm
Forum: Investing - Theory, News & General
Topic: Consequences of Direct Listing
Replies: 6
Views: 1066

Re: Consequences of Direct Listing

Makes sense. Thanks
by viewer0
Wed Aug 12, 2020 8:59 pm
Forum: Investing - Theory, News & General
Topic: Consequences of Direct Listing
Replies: 6
Views: 1066

Consequences of Direct Listing

I am following Palantir - a data analysis firm selling to governments. They are doing a direct listing, as opposed to IPO. In such listing the company insiders can sell their stock on Day 1. So, in general would the stock price go down after opening, as most likely there will be a massive selling wa...
by viewer0
Wed Aug 05, 2020 7:10 am
Forum: Personal Finance (Not Investing)
Topic: What happens when you not declare >10% ownership of a private company
Replies: 3
Views: 707

Re: What happens when you not declare >10% ownership of a private company

greenflamingo wrote: Tue Aug 04, 2020 7:26 pm Asking for a friend, I assume?
yes, how did you guess ?
by viewer0
Tue Aug 04, 2020 7:16 pm
Forum: Personal Finance (Not Investing)
Topic: What happens when you not declare >10% ownership of a private company
Replies: 3
Views: 707

What happens when you not declare >10% ownership of a private company

What happens from IRS perspective when you realize that you have not declared >10% ownership of a for profit company in a foreign land ?
Like to know penalty , any other repercussions etc.
by viewer0
Thu Jul 23, 2020 5:18 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Planning docs
Replies: 23
Views: 1542

Re: Estate Planning docs

Thanks for all the feedback. I have a phone consultation tomorrow. Can you guys tell me what to ask in order to judge the quality of work ?
by viewer0
Thu Jul 23, 2020 3:49 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Planning docs
Replies: 23
Views: 1542

Re: Estate Planning docs

I think the price is too low. Is the attorney "new"/just starting out/looking for new clients or giving cookie-cutter documents to everyone? Correcting Titling Real Estate Did you already know the titling wasn't correct for you? If not, this alone may save you more than the quoted fee in the long r...
by viewer0
Thu Jul 23, 2020 1:35 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Planning docs
Replies: 23
Views: 1542

Re: Estate Planning docs

Anyone had experience with Lionsgate Advisors ?
by viewer0
Thu Jul 23, 2020 7:25 am
Forum: Personal Finance (Not Investing)
Topic: Estate Planning docs
Replies: 23
Views: 1542

Re: Estate Planning docs

When is it advisable to create a trust ? I have two kids, living in MA so far. I understand vaguely that they is a tax benefit when you pass on the assets to your kins ?

The last item " Assistance in Estate Settlement" is kind of vague - may be there is additional fee involved.
by viewer0
Wed Jul 22, 2020 9:03 pm
Forum: Investing - Theory, News & General
Topic: BABA arbitrage
Replies: 2
Views: 468

BABA arbitrage

Because of HK listing of BABA increased more in value than NYSE, the share prices are different creating an arbitrage opportunity. But how can a small potato in US execute this ?

https://finance.yahoo.com/news/alibaba- ... 00850.html
by viewer0
Wed Jul 22, 2020 7:43 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Planning docs
Replies: 23
Views: 1542

Estate Planning docs

I am being quoted a price of $995 for creating the following docs : Revocable Living Trust Durable Power of Attorney Healthcare Surrogates Living Will Wills ( pour over wills) Correcting Titling Real Estate Assistance on Funding my Trust Free calls to my Attorney Assistance in Estate Settlement Are ...
by viewer0
Fri Jul 10, 2020 8:53 am
Forum: Personal Finance (Not Investing)
Topic: tax for self employment
Replies: 26
Views: 1043

Re: tax for self employment

She should have records that match the 1099-K. See Understanding Your Form 1099-K | Internal Revenue Service for some information. If the 1099-K amount is the gross total (e.g., all the $100 buyer amounts) then as sailaway said your daughter may deduct all her business expenses. That happens when s...
by viewer0
Thu Jul 09, 2020 9:25 pm
Forum: Personal Finance (Not Investing)
Topic: tax for self employment
Replies: 26
Views: 1043

Re: tax for self employment

Thanks all. Going via one of the free filers listed ( Turbo tax) She got a 1099-K from Paypal. Let's say the buyer paid $100 but she got $95 in hand as a result of a $5 PayPal fee. Can this $5 be deducted as an expense and hence only $95 will be taxable. This is pertaining to the self employment in...
by viewer0
Thu Jul 09, 2020 8:50 pm
Forum: Personal Finance (Not Investing)
Topic: tax for self employment
Replies: 26
Views: 1043

Re: tax for self employment

Thanks all. Going via one of the free filers listed ( Turbo tax) She got a 1099-K from Paypal. Let's say the buyer paid $100 but she got $95 in hand as a result of a $5 PayPal fee. Can this $5 be deducted as an expense and hence only $95 will be taxable. This is pertaining to the self employment inc...
by viewer0
Thu Jul 09, 2020 10:30 am
Forum: Personal Finance (Not Investing)
Topic: tax for self employment
Replies: 26
Views: 1043

Re: tax for self employment

That's perfect, I also have the same number. I just said $82 as I deducted some expenses from the income. So, yours match mine. Thanks for doing that, @ arcticpineapplecorp Now in this relatively simple scenario, what software should I use, so that I do not get charged for the software and the filli...
by viewer0
Thu Jul 09, 2020 9:47 am
Forum: Personal Finance (Not Investing)
Topic: tax for self employment
Replies: 26
Views: 1043

Re: tax for self employment

When it asked for employment status did you answer that she was BOTH employed and self-employed? I took the quiz and it did ask me if my net self-employment earnings were over $400.

That was my mistake perhaps, as I chose NEITHER. I chose that as she is a full time student.
by viewer0
Thu Jul 09, 2020 8:53 am
Forum: Personal Finance (Not Investing)
Topic: tax for self employment
Replies: 26
Views: 1043

Re: tax for self employment

Thanks for all the insights. I went to this questionnaire https://www.irs.gov/help/ita/do-i-need-to-file-a-tax-return if I need to file a tax and the result was : "You are not required to file a tax return because your income does not equal or exceed $5,750, nor do you owe any special taxes or have ...
by viewer0
Thu Jul 09, 2020 8:27 am
Forum: Personal Finance (Not Investing)
Topic: tax for self employment
Replies: 26
Views: 1043

tax for self employment

Hi My daughter earned ~5K on W2 and also earned ~$600 selling art , which resulted in a 1099-K from PayPal. While filling out the tax forms, I was surprised to see a federal self employment tax of $82 on the $600 ( and no tax on the W2 income). Is that expected ? I thought that if you earn less than...
by viewer0
Thu Jun 25, 2020 12:21 pm
Forum: Personal Finance (Not Investing)
Topic: Covid-19 stimulus check for college student
Replies: 1
Views: 189

Covid-19 stimulus check for college student

Want to understand the criteria who would receive a Covid-19 stimulus check. My daughter goes to college, I pay her tuition and living expenses and claim her as a dependent on my taxes. She had an income of say $2K last year. She does not file taxes every year, she does when some taxes are withheld ...
by viewer0
Mon Jun 15, 2020 7:53 am
Forum: Investing - Theory, News & General
Topic: API for RSI
Replies: 1
Views: 228

API for RSI

Is there any API that would send me an alert when RSI for a certain stocks falls below or goes above a certain threshold. e.g. From stockcharts.com can I track RSI of a multiple stocks with a trigger ? It does not matter where we get the RSI from ( want to know which other website plots like stockch...
by viewer0
Tue May 26, 2020 12:24 pm
Forum: Investing - Theory, News & General
Topic: [implications of] Delisting Chinese stocks?
Replies: 23
Views: 1480

Re: [implications of] Delisting Chinese stocks?

I am sure a lot of funds own BABA.
by viewer0
Tue May 26, 2020 8:49 am
Forum: Investing - Theory, News & General
Topic: [implications of] Delisting Chinese stocks?
Replies: 23
Views: 1480

Re: Delisting Chinese stocks

Thanks @JoMoney for the responses. If a stock gets moved to some other exchange, would this exchange be accessible to Main Street investors for buying / selling through traditional brokerage like Fido, TD etc. ?
by viewer0
Tue May 26, 2020 8:28 am
Forum: Investing - Theory, News & General
Topic: [implications of] Delisting Chinese stocks?
Replies: 23
Views: 1480

Re: Delisting Chinese stocks

Yes, hypothetical question. Normally an unhealthy stock gets delisted. But what if a healthy stock gets delisted from an US exchange, what happens to the stocks / money ? Yes, in my mind, BABA is a Chinese stock / investment instrument. So, to put in generically, what happens when any healthy stock ...
by viewer0
Tue May 26, 2020 8:18 am
Forum: Investing - Theory, News & General
Topic: [implications of] Delisting Chinese stocks?
Replies: 23
Views: 1480

[implications of] Delisting Chinese stocks?

What is the implication of delisting Chinese stocks from US market ? The stocks would get liquidated, I suppose. What are the implications ?

[edited thread title for clarity - moderator prudent]
by viewer0
Thu May 14, 2020 8:05 pm
Forum: Personal Investments
Topic: Wash sale for revolving buy/write strategy
Replies: 2
Views: 288

Wash sale for revolving buy/write strategy

Scenario : 1. Buy 100 shares of XYZ at 100; Sell 1 Call option of strike 90 at 15 Assume stock price end of Friday is 95 2. Hence option gets assigned; stock sold at a loss of 100 - 90 =10 3. Buy Call option for next week at 100 strike for 5; wash sale triggered; Cost basis : 15; sell the call optio...
by viewer0
Mon Feb 17, 2020 3:09 pm
Forum: Personal Finance (Not Investing)
Topic: Tax underpayment penalty
Replies: 66
Views: 5134

Re: Tax underpayment penalty

"cap gains are usually at year end: Dec. "

really ? then did I not incur any cap gains till the end of the year and hence should not have paid estimated tax ?
by viewer0
Mon Feb 17, 2020 9:38 am
Forum: Personal Finance (Not Investing)
Topic: Tax underpayment penalty
Replies: 66
Views: 5134

Re: Tax underpayment penalty

Ah..... that made the difference. Mine was in Q3. I thought TT should have taken that into consideration and not suggested a penalty. Did you use TT or any other tax software ?
by viewer0
Mon Feb 17, 2020 9:05 am
Forum: Personal Finance (Not Investing)
Topic: Tax underpayment penalty
Replies: 66
Views: 5134

Re: Tax underpayment penalty

RM
I agree, I meant income
by viewer0
Mon Feb 17, 2020 9:00 am
Forum: Personal Finance (Not Investing)
Topic: Tax underpayment penalty
Replies: 66
Views: 5134

Re: Tax underpayment penalty

RM
Thanks for the detailed explanation. I realized a "huge" capital gain in Q3; hence I paid more taxes that what I made out of salary.
by viewer0
Mon Feb 17, 2020 8:39 am
Forum: Personal Finance (Not Investing)
Topic: Tax underpayment penalty
Replies: 66
Views: 5134

Re: Tax underpayment penalty

@mtmingus . how ?
Did you have to itemize the sale each quarter in AI ?
by viewer0
Mon Feb 17, 2020 8:27 am
Forum: Personal Finance (Not Investing)
Topic: Tax underpayment penalty
Replies: 66
Views: 5134

Re: Tax underpayment penalty

I do not fully understand the difference between estimated taxes and withholding. I have withheld about 90% of my monthly paycheck from payroll all throughout the year. Hence I got very meager take home paycheck every month. This was in anticipation of the sale that I would make. The tax I paid in 2...
by viewer0
Mon Feb 17, 2020 8:11 am
Forum: Personal Finance (Not Investing)
Topic: Tax underpayment penalty
Replies: 66
Views: 5134

Re: Tax underpayment penalty

Thanks for digging into this. Yes, I used Turbotax last year (2018). The penalty is showing up both in State and Federal. I also thought that if I "withhold" . 110% of the past year, I am safe. However, as is discussed, may be I did not withhold in a timely manner. When I manually move the $50K esti...
by viewer0
Sun Feb 16, 2020 4:34 pm
Forum: Personal Finance (Not Investing)
Topic: Tax underpayment penalty
Replies: 66
Views: 5134

Re: Tax underpayment penalty

Yes, that is what I meant by "deduct" , I meant withheld