Bogleheads.org

EdNorton

I would argue you're replacing a part, repairing an existing system. Assuming you're only replacing the heat pump.

EdNorton

Cash it, do a mobile deposit.

EdNorton

If it was me, not worth it to capitalize a $6k item. What is the item? Can you argue that it should have been expensed? How many years would it be depreciated? I'm a retired CPA and I lean to aggressive tax positions.

EdNorton

It appears that Bogleheads approve of time shares ahead of owning individual stocks.

EdNorton

In an odd situation with 2023 Tax Safe Harbors. Ended up owing a lot of tax in 2022, only withholding ~87% of 2022 taxes, but our income increased a lot, such that we did withhold > 125% of 2021 taxes, so we got the Safe Harbor. For 2023, expect the income to be much closer to 2022, probably a little higher, but not huge. I have no idea what investment income will be. But I don't think our 2023 tax liability will be >110% of 2022. I'm certain that withholding to match at least 100% of 2022 tax liability will be well above 90% of 2023 taxes. Will that qualify for 2023 safe harbor? Am I missing anything? I am in a similar situation. I am targeting withholding 90% of 2023 income. You must be in a high tax bracket, having to withhold 90% of yo...

EdNorton

Same tax treatment as any other withdrawals from your 401k, most likely taxed at 10% plus your marginal tax rate.

EdNorton

One acre is a little small for a house and RV storage.

EdNorton

dkturner wrote: ↑Mon Apr 05, 2021 6:38 am
cheese_breath wrote: ↑Thu Apr 01, 2021 10:09 pm Withdraw when / if I need it.
Yes. The most obvious solution is to withdraw funds as you need the money. It’s pure common sense.

There are a number of advantages to waiting until the end of the year, and taking a single withdrawal, but this strategy only works if you don’t need the withdrawn funds during the year.

What are the advantages to waiting to the end of the year? Just give 3-4 of the advantages you speak of. Please enlighten me.

EdNorton

Thought his mantra was "Why don't we get drunk and", something like that. I'm all for it.

EdNorton

student wrote: ↑Tue Mar 21, 2023 7:37 pm
KlangFool wrote: ↑Tue Mar 21, 2023 7:31 pm
kchico wrote: ↑Tue Mar 21, 2023 7:10 pm

Age: 38 and 39

Total Portfolio: $1.75M

Taxable
$270k

His 401K:
$284k
81% Fidelity 500 Index (FXAIX)
10% Fidelity International Index (FSPSX)
9% Vanguard International Growth Admiral (VWILX)
Company match? 4%

His Roth IRA at E-trade
$190k

Traditional IRA at E-trade
$400k

Her Roth IRA at E-trade
$70k

Her Roll-Over IRA at E-trade
$300k

Her Traditional IRA at E-trade
$230k

kchico,

I do not see a portfolio of 1.7m. Please redo your calculation.

KlangFool
What do you mean? 270+284+190+400+70+300+230=1744

EdNorton

Old Rolex Mariners

EdNorton

MechDoc wrote: ↑Tue Mar 21, 2023 11:59 am
EdNorton wrote: ↑Tue Mar 21, 2023 11:09 am Who says the IRS feels it has no value?

Perhaps that is a stretch, but the inference from 100% depreciated (i.e. to quote from a dictionary "a reduction in the value of an asset with the passage of time, due in particular to wear and tear.") would imply at 100% reduction in value.

Just because Sec 179 allows a100% depreciation in the year acquired, does not imply the FMV is zero. An easy find in an audit.

EdNorton

MechDoc wrote: ↑Tue Mar 21, 2023 10:51 am Ok, so arm lengths transactions issues favors the argument that this doesn't pass the sniff test. So let's say the asset remains on the company books, however the IRS feels that it has no value (100% depreciation). What is to stop someone from using the asset for personal use after one year?

Who says the IRS feels it has no value?

EdNorton

Do a 2022 New York return, mark it as final. Do not file a 2022 Arkansas return. Make it easy on yourself. You have zero Ark income. Next year at this time, file an initial Ark return.

EdNorton

I am having the exact same problem and have not been able to resolve the issue yet. I've called HR Block several times and a local office and there is no solution yet. What have you found out? Thanks. Ater numerous calls and escalations and wasting many hours, they finally sent me an email that stated this: "We’ve done some additional research and have some information to help resolve your issue: Unfortunately, the 2022 software program does not allow e-filing of returns with Form K-1 estate/trust 11 with code (A) for excess deductions section 679e. If you wish to include this in your return you will have to print and mail your return to the IRS. If you remove it you have the ability to e-file. The IRS rules and guidelines for e-filin...

EdNorton

Echo makes an electric zero turn, ad says will do up to 2 acres on a single charge. Saw Lowe's sells them for $5,000. I've been pleased with Echo leaf blowers and weed wackers, waiting to hear some reviews before I pull the trigger.

EdNorton

Yes. Been retired about 8 years. Pensions and other income were about $30k. First couple of years, I tax gain harvested, then made the decision to do Roth conversions in lieu of the 0% cap gains tax rate. When I did tax gain harvest, my AGI would be about $100k and Fed taxes about $4k (MFJ).

EdNorton

It is included in your federal income in the current year because you deducted it in the prior year, assuming you itemized your taxes the prior year. It's a subtraction from your state's income because you did not get a state deduction in the prior year, assuming your state does not have itemized deductions. If you didn't itemize the prior year, you don't include it in income for federal. :sharebeer I didn't need the state deduction on the first year. Forget Federal deducttions modifications (I understand them) My 2018 state return I paid $2000 in taxes, but I should have paid $1500. On 2018 I itemized federal tax. On January 2020, I do an amendment for my 2018 state taxes , they return me $500 in a check a few months later (consider inter...

EdNorton

I'm 66, what's a safe withdrawal rate for me, 8%? :sharebeer Download the toolbox, enter your info, and let me know! Would love to hear from you. I'm not too computer savvy, but being optimistic, I got 30 years left to live, you got 60. 8% sounds about right for 30 years if 5% works for 60 years. Currently doing about1.3%, waiting till 70 for SS. :sharebeer Congratulations! Sounds like you are going to leave your heirs a lot of money, and I recommend giving it to them ahead of dying, check out “die with zero” if you haven’t already. Cheers. No kids to leave money to, but do have nieces and nephews. Will leave money to them if any left. A $1 million lake house might be in my future plans, if that happens, might go to 4% withdrawal rate. Don...

EdNorton

TinyHouse wrote: ↑Wed Mar 15, 2023 8:47 pm
EdNorton wrote: ↑Wed Mar 15, 2023 8:21 pm I'm 66, what's a safe withdrawal rate for me, 8%?

Download the toolbox, enter your info, and let me know! Would love to hear from you.

I'm not too computer savvy, but being optimistic, I got 30 years left to live, you got 60. 8% sounds about right for 30 years if 5% works for 60 years. Currently doing about1.3%, waiting till 70 for SS.

EdNorton

It is included in your federal income in the current year because you deducted it in the prior year, assuming you itemized your taxes the prior year. It's a subtraction from your state's income because you did not get a state deduction in the prior year, assuming your state does not have itemized deductions. If you didn't itemize the prior year, you don't include it in income for federal.

EdNorton

delamer wrote: ↑Wed Mar 15, 2023 2:33 pm There is no way to hang onto the low interest loan and sell the car.

However, you probably don’t have to pay off the loan before you sell it. It depends on the numbers.

How much is left on the loan and how much equity do you estimate that you have in the car?

The loan needs to be paid off, regardless of what the car is worth.

EdNorton

I'm 66, what's a safe withdrawal rate for me, 8%?

EdNorton

Their fees are structured so that they do better when you do better. They also do pretty good when you do badly.

EdNorton

Are you married, filing jointly? You do not have to file Form1116 if foreign taxes less than $600 ($300 if single). Make sure to enter the foreign dividend amount and enter it as passive income. This assumes you have a tax liability.

EdNorton

I don't see XYZ listed.

EdNorton

Go to Bowen's Island for some oysters and other fresh seafood. It's a local institution, great food, great atmosphere. I prefer dive bars.

EdNorton

Capricorn212 wrote: ↑Fri Mar 10, 2023 2:43 pm
celia wrote: ↑Fri Mar 10, 2023 2:06 pm It doesn’t matter that much what you (or us) think. The decision is up to the three of you.

If you’ve received your share of the undisputed estate and it is over $250k (meaning the estate was over a million plus $250k), personally I would just call it a day. Life is too short to spend it on an extended lawsuit.
The entire estate was, about $500 million - and maybe calling it a day, is really the best option and moving on.

Didn't you write $500 million?

EdNorton

How much are you up?

EdNorton

How are the business earnings reported on your tax return, on Sch C or as a flow through on a K-1? If on a Sch C, you should have a Sch C for both you and spouse, 50% of everything reported separately, otherwise income will be attributed to one person.

EdNorton

I've never had a credit card dispute where the entire amount was not removed. Did the $142 include all taxes?

EdNorton

Ask him for your depreciation schedule. What is the fair market value at time of inheritance? Tax assessment is generally not used for depreciation.

EdNorton

Try and get a graduate assistantship.

EdNorton

abuss368 wrote: ↑Sat Mar 04, 2023 9:46 am
bhwabeck3533 wrote: ↑Fri Mar 03, 2023 7:17 pm Without nominating Key West, I'd like to observe the Top Ten sunset locations in the Continental United States. From first-hand experience, name your top ten. I'm offering Fairhope, AL and the sunset over the Mobile Bay as a deserving entry on this list.
Siesta Key Sarasota, Florida over the Gulf of Mexico.

That combined with the white sand beaches.

An amazing and beautiful experience.

So peaceful.

Best.
Tony

Red tide is bad there now.

EdNorton

The bridge off Bahia Hondo State Park in the Keys, only time I've seen the "green flash".

EdNorton

A financial advisor is worth it when their net return is greater than your net return. Put 20% of your assets with them, see if they do better an you, just don't let them put you into anything you can't easily and cheaply get out of.

EdNorton

boogiehead wrote: ↑Mon Feb 27, 2023 4:49 pm Thanks for everyone's input and explanation. One more thing...a capital gains distribution would offset the capital loss carryover? So in my example with 10K capital loss carryover in 2022, but if I had 12K of capital gains distribution in 2023. My tax liability in 2023 would be 2K?

No, you would have $2k in capital gains, your tax liability is dependent on other factors. If that is all your income, your tax liability is zero.

EdNorton

I like sitting at an open air bar with a beer and watching the people. We used to sit at "The Bull" and watch the reactions of tourists off the cruise ships as they entered a sex shop across the street. Some people are shocked, others were laughing. People watching is the best in Key West.

EdNorton

It's unclear to me if the check, has cleared yet.

EdNorton

If it was me, I would minimize dividends and L/T cap gains in taxable and convert IRA's to Roth up to the next tax bracket.

EdNorton

Ohio has legalized sports gambling as of the first of the year. BetMGM had a promotion, bet $10 and get $200 in free bets. I did this and it was hard to figure out how to only bet $10, the default bet is $50, but after a phone call I was able to figure it out. I won my $10 bet, which paid around $9. I then bet the $200 on the Cowboys over Tampa Bay, which paid $184. To get my money out, I need to go in person to a MGM casino, which I will do around KY Derby time.

I'm not much of a gambler, mostly $5/$10 bets with friends but this deal was too good to pass up. 1800% return is pretty good. I think it's shameful that Ohio allowed this. I don't mind legalized gambling but allowing people to gamble just using their phone is wrong.

EdNorton

EdNorton wrote: ↑Tue Feb 21, 2023 2:58 pm Are you sure you didn't harvest those bills off the walls and ceiling of a dive bar where they staple dollar bills to walls and ceiling?

EdNorton

Are you you didn't harvest those bills off the walls and ceiling of a dive bar where they staple dollar bills to walls and ceiling?

EdNorton

If you goal is to reduce future RMD's, then pay the taxes out of the conversion.

EdNorton

Here's my conclusion: The argument not to borrow from your 401k because you're paying yourself with after-tax money or facing double taxation is completely false, and anybody who says otherwise is a bonehead. Point 1 - all loans are paid back with after-tax money, regardless who it is paid to. Point 2 - all earnings (and contributions) will be taxed at ordinary income tax rates when withdrawn. Point 3 - assuming the bank loan rate, the 401k loan rate, and the rate the 401k would have returned had you not borrowed from the 401k, you would have come out exactly in the same position, wherever you borrowed the money from. The variable is what would have the money returned had you left it in the 401k. If you took a loan from the 401k at the begi...

EdNorton

One of the arguments I hear against borrowing from 401k plans is that you are paying it back with after tax money. I understand all the other arguments against it but this one. Let's say you wanted to borrow $50k for an auto loan. Wherever I borrow the money from, it's getting paid back with after tax money. If the 401k loan is cheaper than other loans, I'd go with that. Assuming I keep my normal 401k contributions going and I don't lose my job, the only risk is market risk in taking the loan. I'm retired and no longer have 401k's but wanted to hear an argument that makes sense to me. :sharebeer Let's say you have a marginal tax rate of 20%, and we'll ignore interest for now. You defer $10,000 of pre-tax income into your 401(k). You immedi...

EdNorton

mega317 wrote: ↑Mon Feb 20, 2023 9:36 am You are correct. (The interest is double taxed.) Imagine the scenario where you borrow 50k for a car, then change your mind the next day and put it back. No harm no foul.

The earnings of a 401k are taxed the same, upon withdrawal at ordinary income tax rates, regardless whether it's interest you paid from a loan or interest from a bond fund. I don't see that it's double taxed.

EdNorton

One of the arguments I hear against borrowing from 401k plans is that you are paying it back with after tax money. I understand all the other arguments against it but this one. Let's say you wanted to borrow $50k for an auto loan. Wherever I borrow the money from, it's getting paid back with after tax money. If the 401k loan is cheaper than other loans, I'd go with that. Assuming I keep my normal 401k contributions going and I don't lose my job, the only risk is market risk in taking the loan.

I'm retired and no longer have 401k's but wanted to hear an argument that makes sense to me.

EdNorton

I would just pay the tax due without the underpayment penalty. And if you receive a notice, either pay that or send a letter asking for relief after explaining the situation.

EdNorton

EdNorton wrote: ↑Sun Feb 19, 2023 7:14 pm
Fly1346 wrote: ↑Sat Feb 18, 2023 9:48 pm This topic isn’t about which car to buy. I know I want a Range Rover. So you won’t Convince me not to or To buy one. But thanks. And btw my last Range Rover was brand new one from factory and had to get recalled for some sensor issues (for which I got my money back for and compensated by RR)

The question was to purchase or finance
If question was to purchase or finance, why bring up what kind of car you've purchasing. OP is a troll, but I enjoy those.

Also, unless you lease, you are purchasing the car, either paying cash or financing.

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