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JimmyJames

As a long term strategy, what are some stocks that you would recommend investing in to capitalize on electric vehicles? I am thinking supply chain here, not necessarily individual car companies like Tesla.... who makes the batteries, other parts, charging stations, charging cables, etc. Any recommen...

JimmyJames

OP -- Like I said, if you say one little thing about anything even resembling market timing, this board will beat you up. I made a decision to pull out a large majority of my investments until things settle down this year. Keep in mind I did this at DOW 26k, not at the bottom. I did it after the rec...

JimmyJames

To each their own. Do what you feel is right. Sigh. Those who don't study history will be forced to repeat it. :oops: You can lead a horse to water... OP -- if you haven't been on the board much, you will quickly find out that there is many on here who don't allow for independent thought. They are ...

JimmyJames

To each their own. Do what you feel is right. Sigh. Those who don't study history will be forced to repeat it. :oops: You can lead a horse to water... OP -- if you haven't been on the board much, you will quickly find out that there is many on here who don't allow for independent thought. They are ...

JimmyJames

To each their own. Do what you feel is right. Sigh. Those who don't study history will be forced to repeat it. :oops: You can lead a horse to water... OP -- if you haven't been on the board much, you will quickly find out that there is many on here who don't allow for independent thought. They are ...

JimmyJames

Hi Everyone. For context, I'm 36 years old, married , one child. Less than $500k invested (index funds). 80/20 portfolio. I'm having a really hard time right now, not wanting to temporarily sell all my US equities to cash. The way that US stocks have rebounded baffles me and US equities seem comple...

JimmyJames

alex_686 wrote: ↑Wed Jul 15, 2020 11:46 am
JimmyJames wrote: ↑Wed Jul 15, 2020 11:42 am I would never risk everything. I am talking small-ball fun money here.
So did they. Just remember, the maximum loss for shorting 1 share of a stock is unlimited.

Is the maximum loss not equal to your original investment (price paid for the put option)?

JimmyJames

It sounds like most would rather I go to the casino to have a little fun, rather than gamble the market? Is that the advice?

JimmyJames

I am sensing a strong undertone in these responses :D Yeah. I know people who lost everything shorting Webvan and Netscape. This is a high skilled investment activity that benefits from making specific bets with a high payout. So, not shorting a sector. So, not shorting on headline news. Expect to ...

JimmyJames

I am sensing a strong undertone in these responses

Message received.

JimmyJames

I appreciate that and will check it out. However, I would like to get some responses from Bogleheads, as I appreciate their input much more. I am a boglehead for the most part, but I think there is a few of us who have a little "fun" money that we don't mind drifting from boglehead princip...

JimmyJames

I am new to options -- let's "pretend" I wanted to gamble a little... if I was to guess that people and companies will start defaulting on mortgages and other loans within the next 3-6 months, what would be the best option trade to take advantage of this? I assume I would want to look for ...

JimmyJames

Since it's on the honor system, businesses who have not been impacted or positively impacted or successfully pivoted can apply and receive the loan. That's the problem. But it's always going to be a problem without an easy solution. We are very conservative in our finances and always keep a year's ...

JimmyJames

jacoavlu wrote: ↑Wed Apr 08, 2020 2:41 pm
lukestuckenhymer wrote: ↑Wed Apr 08, 2020 1:50 pm
It was pretty clear to me that the $100k cap included benefits/retirement.
that was what I thought as well

but see #7 of this treasury FAQ

https://home.treasury.gov/system/files/ ... stions.pdf

Bingo.

JimmyJames

The calculation for the LOAN is still the monthly average x 2.5. However, the forgiveness calculation is based off 8 weeks. Does that make sense? Obviously the 2.5x calcuation will be higher -- the difference is supposed to be filled with non-payroll costs, mainly rent or mortgage.

JimmyJames

OP -- your calculation for the loan looks right ($26,683). However, I believe the $100k cap still applies for the 8 weeks forgiveness. So your total forgiveness I think would be around $20-21k. Generally the rest of the loan/forgiveness gap would be filled with rent/mortgage, which you do not have. ...

JimmyJames

Question: The CARES Act excludes from the definition of payroll costs any employee compensation in excess of an annual salary of $100,000. Does that exclusion apply to all employee benefits of monetary value? Answer: No. The exclusion of compensation in excess of $100,000 annually applies only to c...

JimmyJames

Just FYI, apparently guidance came out yesterday that says $100k is salary only, the other costs CAN be added on top of that. Unfortunately nearly all CPAs gave guidance opposite of this for all of us who have already submitted our applications

JimmyJames

Question: The CARES Act excludes from the definition of payroll costs any employee compensation in excess of an annual salary of $100,000. Does that exclusion apply to all employee benefits of monetary value? Answer: No. The exclusion of compensation in excess of $100,000 annually applies only to c...

JimmyJames

Question: The CARES Act excludes from the definition of payroll costs any employee compensation in excess of an annual salary of $100,000. Does that exclusion apply to all employee benefits of monetary value? Answer: No. The exclusion of compensation in excess of $100,000 annually applies only to c...

JimmyJames

can a single member s corp apply for both EIDL and PPP? I believe so, but the loans can't be used for the same purpose, and I believe you can only get $10k total forgiven/grant. Can't get $10k grant with EIDL and $10k forgiven with PPP. So if you want a loan you can get more using both programs, bu...

JimmyJames

FWIW, this morning I received notice of approval from SBA, along with an SBA confirmation number. Was told they will be communicating soon for next steps and funding. This was with a medium-sized local/regional bank. It sounds to me like it might be the larger banks (BOA, Wells Fargo, etc) that are ...

JimmyJames

FWIW, this morning I also received notice of approval from SBA, along with an SBA confirmation number. Was told they will be communicating soon for next steps and funding. This was with a medium-sized local/regional bank. It sounds to me like it might be the larger banks (BOA, Wells Fargo, etc) that...

JimmyJames

Wouldn’t this calculation be correct For example Salary 300k Health insurance 20k Retirement 40k Payroll = 360k Subtract excess salary over 100k would mean 300k-100k=subtract 200k Therefore payroll =360-200=160k. Then divide by 12 and multiply by 2.5 Loan value = 33,333 No, the $100k limit is inclu...

JimmyJames

As others have said, you can apply for a max loan of $20,833, and should be able to have it all forgiven. Unless your revenues are up because of the crisis, you qualify. Take advantage if you can, everyone else is.

JimmyJames

Under "Payroll Costs", they also include as a forgivable loan expense "retirement benefits." I have a solo 401K, and will use part of the loan for the employer contribution to the 401k plan (assuming I'll get approved for the PPP loan) That is correct, but understand retirement ...

JimmyJames

Say one was a 100% owner of an S Corp, with its only employee being the 100% owner. Say said owner took about 50% in W-2 wages and 50% in cash distributions in 2019. Can said owner only consider the W-2 wages in the 2.5x calculation for PPP? Or all? Only the W2 wages. Wrong, "payroll costs&quo...

JimmyJames

If you pay yourself or other people W2 wages, these are the only figures you can use in your "monthly payroll" calculations. You cannot include net income. The only people that can use net income are those who are sole proprietors and do not pay themselves or anyone else W2 wages. The $100...

JimmyJames

I am in a similar position. My CPA gave guidance that the $100k cap is inclusive of all other benefits. So your max loan amount would be $100k/12 x 2.5 = $20,833.

JimmyJames

I think JimmyJames is correct. How large can my loan be? Loans can be for up to two months of your average monthly payroll costs from the last year plus an additional 25% of that amount. That amount is subject to a $10 million cap. If you are a seasonal or new business, you will use different appli...

JimmyJames

For what it's worth, here is how the payroll company ADP appears to interpret it. I can't tell for sure how exactly they're generating their new PPP-specific reports, but what it looks like to me is that the report includes the first $100K of compensation for each employee inclusive of benefits and...

JimmyJames

areyadone wrote: ↑Fri Apr 03, 2020 4:11 pm Say one was a 100% owner of an S Corp, with its only employee being the 100% owner.

Say said owner took about 50% in W-2 wages and 50% in cash distributions in 2019. Can said owner only consider the W-2 wages in the 2.5x calculation for PPP? Or all?

Only the W2 wages.

JimmyJames

2. If our company can borrow up to 100,000 for each of these employees, do any earnings which they have offset the loan forgiveness? The rate is so low that I’d take out the loan anyway, sort it out later. Give them pay cuts if necessary. There is provisions about not cutting salaries, so be carefu...

JimmyJames

The $100k is a limit, not an exclusion. The calculation for what the business would qualify for is "average monthly payroll" x 2.5. If you have 5 employees who make $400k each and 1 who makes $30k, your calculation would look like this: ($100k + $100k + $100k + $100k + $100k + $30k)/12 x 2...

JimmyJames

If your business is doing just fine and you are able to meet payroll you may not be able to truthfully sign the form. This is going to be extremely difficult for anyone to argue against. The keyword is uncertainty. A business may have enough in savings to cover payroll for a few months, but what ha...

JimmyJames

Pretty sure your accountant is mistaken about 1099-Misc contractors. Me too, but once again today he told us it’s not allowed. See here: https://eig.org/wp-content/uploads/2020/03/Paycheck-Protection-Program-Overview.pdf My reading of this implies that the 1099 contractor would apply for the progra...

JimmyJames

I am also seeing "Payroll costs (compensation above $100,000 excluded)" -- so maybe for those employees with over $100k in salary, they will allow forgiveness for the first $100k, but nothing above that. Which I think probably makes sense... don't want the government to start paying someon...

JimmyJames

1. Can it be used in any way to support employees who earned more than $100,000 in 2019? We have many of those and most are earning little to nothing now due to the shutdown. My understanding of the brief research I have done is that a business can borrow 2.5 average monthly payroll cost (up to 10 ...

JimmyJames

I use BOA for incoming international transfers all the time with my business. I would recommend them. You have all the correct info. Don't worry about IBAN. Some countries use that, some use Swift. Just send everything you have listed and you'll be good. Can take 2-3 days for international transfers...

JimmyJames

No worries, always good to check -- I would add depending on what type of equipment you are purchasing you may be able to fully deduct (essentially convert to a full expense) this year using section 179.

JimmyJames

There is no dividends in this situation. You pay taxes on your profits whether you take money out of the business, or don't. You can move money into (contribution) and out (distribution) of the business freely. No need to do a "loan", as you are essentially loaning it to yourself. The inte...

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