Search found 6959 matches

by jebmke
Mon Dec 11, 2017 6:32 pm
Forum: Personal Finance (Not Investing)
Topic: Year end review with less nerdy spouse
Replies: 54
Views: 4216

Re: Year end review with less nerdy spouse

mancich wrote:
Mon Dec 11, 2017 6:07 pm
(what do we want to accomplish together in 2018)
Doesn't sound like there is much "together" in this if you are preparing the slides.
by jebmke
Mon Dec 11, 2017 5:08 pm
Forum: Personal Finance (Not Investing)
Topic: Prepayment of SALT Taxes? [State and Local]
Replies: 203
Views: 13932

Re: Prepayment of SALT Taxes? [State and Local]

It is a well known rule. In case IRS does not respond and until a reply comes, one can go ahead with his plan and fines cannot be imposed. Of course, interests on late payments can, if that is the case. Any error is considered bona fide. Certainly not well known by me. Code citation please? So you'...
by jebmke
Mon Dec 11, 2017 4:30 pm
Forum: Investing - Help with Personal Investments
Topic: How much international before exceeding $300 foreign tax credit
Replies: 6
Views: 522

Re: How much international before exceeding $300 foreign tax credit

If your foreign sourced dividends are less than some number ($20K I think), form 1116 is not that complicated to complete.
by jebmke
Mon Dec 11, 2017 4:26 pm
Forum: Personal Finance (Not Investing)
Topic: Prepayment of SALT Taxes? [State and Local]
Replies: 203
Views: 13932

Re: Prepayment of SALT Taxes? [State and Local]

MikeG62 wrote:
Mon Dec 11, 2017 4:21 pm
So whatever a rep on the phone is likely to say (if anything) won't be dispositive under IRS audit anyway.
Is it ever? On many topics you can call multiple times and get different answers.
by jebmke
Mon Dec 11, 2017 3:30 pm
Forum: Personal Finance (Not Investing)
Topic: Prepayment of SALT Taxes? [State and Local]
Replies: 203
Views: 13932

Re: Prepayment of SALT Taxes? [State and Local]

j0hnd0e wrote:
Mon Dec 11, 2017 3:27 pm
Has anyone tried or is interested in contacting IRS or a tax professional to get more information on whether this would be deductible in 2017 or not?
I recommended that upthread. I'd do it myself if I needed this deduction but I have others that are more valuable.
by jebmke
Mon Dec 11, 2017 11:16 am
Forum: Personal Consumer Issues
Topic: Kerosene Heater (for power-out emergencies)
Replies: 33
Views: 1579

Re: Kerosene Heater (for power-out emergencies)

We installed a gas insert in our main fireplace in Wisconsin when we lived there. It was handy a couple of times when the power went out. Had to encamp to the living room but not that big a deal. Kept the LR pretty well at normal temps.
by jebmke
Mon Dec 11, 2017 10:05 am
Forum: Investing - Help with Personal Investments
Topic: Which type of 401K rollover?
Replies: 10
Views: 461

Re: Which type of 401K rollover?

What does your tax situation look like next year and the year after? If you are in a zero bracket, another strategy is to roll to a TIRA now and then convert an amount to a ROTH to use the entire zero bracket (or perhaps brackets that are less than 15%) in 2018 and future years.
by jebmke
Mon Dec 11, 2017 9:57 am
Forum: Personal Finance (Not Investing)
Topic: Prepayment of SALT Taxes? [State and Local]
Replies: 203
Views: 13932

Re: Prepayment of SALT Taxes? [State and Local]

It is not clear to me how the States will report 2018 tax payments in 2017. Nor do I understand how the IRS document matching program will compare the State reporting document with the (modified) TurboTax return. Any insights would be appreciated. I don't think there is any active matching on estim...
by jebmke
Mon Dec 11, 2017 9:49 am
Forum: Personal Consumer Issues
Topic: How easy is it to minimize tax liability yourself without a CPA/accountant?
Replies: 16
Views: 1787

Re: How easy is it to minimize tax liability yourself without a CPA/accountant?

One of the keys to minimizing tax liabilities is looking far enough ahead -- and I mean years, not months. The levers in December for the current tax year are often quite limited. My main focus on tax management over the last few years was to focus most of my time on 2018-2022 (the years following m...
by jebmke
Mon Dec 11, 2017 9:08 am
Forum: Personal Finance (Not Investing)
Topic: Prepayment of SALT Taxes? [State and Local]
Replies: 203
Views: 13932

Re: Prepayment of SALT Taxes? [State and Local]

No, the law only allows for the tax to be a deducttion "for the taxable year during which paid." Ok, then it is deductible in 2017. Probably, yes. You could call the IRS and ask them. I'm sure this has come up before. The phone answer isn't definitive but it might give an indication of how they wou...
by jebmke
Sun Dec 10, 2017 5:58 pm
Forum: Personal Finance (Not Investing)
Topic: Prepayment of SALT Taxes? [State and Local]
Replies: 203
Views: 13932

Re: Prepayment of SALT Taxes? [State and Local]

I think the worst case might be taking the deduction in 2017, having it disallowed and be unable to take a (still permitted) deduction in 2018 because the tax was paid in 2017.
by jebmke
Sun Dec 10, 2017 3:17 pm
Forum: Personal Finance (Not Investing)
Topic: Pay Estimated Taxes
Replies: 7
Views: 730

Re: Pay Estimated Taxes

That makes a great deal of sense! I am going to lower my exemptions and that should take effect for my last paycheck (and bonus). As for FICA taxes, she will be paying the full load; is the "employer" portion tax deductible? Thanks. The employer portion is an adjustment to your gross income in arri...
by jebmke
Sun Dec 10, 2017 2:35 pm
Forum: Personal Finance (Not Investing)
Topic: What are your big-picture ‘rules of life’ —financial or otherwise?
Replies: 101
Views: 8524

Re: What are your big-picture ‘rules of life’ —financial or otherwise?

A wise person gave me two words of advice when I was starting out.

First, manage your expectations. Sometimes you need to have high expectations and other times you need to moderate them to avoid disappointment.

Second, wear comfortable shoes. You will spend many hours of your life on your feet.
by jebmke
Sun Dec 10, 2017 11:57 am
Forum: Investing - Theory, News & General
Topic: How should I look at SS and pensions when developing my post-FRA AA?
Replies: 30
Views: 921

Re: How should I look at SS and pensions when developing my post-FRA AA?

I would use a DCF method to estimate a value for the pension, or any other stream of future payments, and count that in the bonds component of my AA. This to avoid all those absurdities that usually pop out when one uses extravagant accounting procedures. If the plan provides a lump sum option, tha...
by jebmke
Sun Dec 10, 2017 11:52 am
Forum: Personal Finance (Not Investing)
Topic: Pre-Pay Property Taxes in 2017?
Replies: 23
Views: 2019

Re: Pre-Pay Property Taxes in 2017?

Regardless of my rate in any one year, if the actual dollar value of taxes I owe exceeds the property tax deduction I will take, what does the rate matter? (Maybe that's the key? I don't envision a case where my rate is low enough such that my overall tax bill is less than my property tax deduction...
by jebmke
Sun Dec 10, 2017 11:39 am
Forum: Investing - Theory, News & General
Topic: How should I look at SS and pensions when developing my post-FRA AA?
Replies: 30
Views: 921

Re: How should I look at SS and pensions when developing my post-FRA AA?

My pensin plan gives me the choice of collecting 500k at separation, or 3k/month for the rest of my life. Would anyone think that if I chose the instant payout I can include that amont under “cash”, but if I pick the pension I am half a million poorer ? If you elect the annuity your net assets will...
by jebmke
Sun Dec 10, 2017 11:38 am
Forum: Investing - Theory, News & General
Topic: How should I look at SS and pensions when developing my post-FRA AA?
Replies: 30
Views: 921

Re: How should I look at SS and pensions when developing my post-FRA AA?

I just project them as income (so net expenses have to be funded from investments).
by jebmke
Sun Dec 10, 2017 11:30 am
Forum: Investing - Help with Personal Investments
Topic: Cash heavy and unsure
Replies: 12
Views: 1013

Re: Cash heavy and unsure

Going back to the OP’s orginal question: No, there is no good reason to invest in treasuries instead of CD’s, when the latter offer a higher yield ceteris paribus. Generally, yes. Especially small amounts. Once you get large amounts it becomes cumbersome, even with brokered CDs. But if you don't ne...
by jebmke
Sun Dec 10, 2017 10:27 am
Forum: Personal Consumer Issues
Topic: Cell signal booster to fix -110 dBm 99aum signal strength
Replies: 9
Views: 548

Re: Cell signal booster to fix -110 dBm 99aum signal strength

In my quest to reduce my mobile phone bill I have been using Republic Wireless MOTO G wifi phone for the past 3 - 4 years. Recently, I installed 3 Google WIFI devices in my house but my Republic Wireless service is still very unreliable when it comes to handling phone calls. I could switch to Veriz...
by jebmke
Sun Dec 10, 2017 10:08 am
Forum: Personal Finance (Not Investing)
Topic: Prepayment of SALT Taxes? [State and Local]
Replies: 203
Views: 13932

Re: Prepayment of SALT Taxes? [State and Local]

If one pays and deducts the 2018 estimated tax in 2017 and the deduction is subsequently disallowed, how would this affect the ability to deduct it in 2018? Normally the requirements for a deduction are that the tax must be paid in the tax year when the deduction is taken. In my opinion this would ...
by jebmke
Sun Dec 10, 2017 10:03 am
Forum: Personal Finance (Not Investing)
Topic: Turbo Tax bug with Medical Expenses
Replies: 7
Views: 566

Re: Turbo Tax bug with Medical Expenses

es. Those 1099 corrections happen lot. I actually got two sets from Vanguard last year. The first set was wrong; the second set corrected it back to the original set. Duh! One of my worse case scenarios was a taxpayer who came into my TaxAide site a second time with a brokerage statement that revea...
by jebmke
Sun Dec 10, 2017 9:59 am
Forum: Investing - Help with Personal Investments
Topic: Cash heavy and unsure
Replies: 12
Views: 1013

Re: CDs and treasuries

Why would anyone buy treasuries over CDs? I am not an accomplished investor, but I have read enough of the fine print to know the difference. Why would one choose treasuries over a CD if investing under $250,000? liquidity, probably. Also, you can buy treasuries that are inflation protected whereas...
by jebmke
Sun Dec 10, 2017 9:56 am
Forum: Personal Finance (Not Investing)
Topic: Prepayment of SALT Taxes? [State and Local]
Replies: 203
Views: 13932

Re: Prepayment of SALT Taxes? [State and Local]

I thought I raised this question before but could not find it. Apologies if this is a repeat. If one pays and deducts the 2018 estimated tax in 2017 and the deduction is subsequently disallowed, how would this affect the ability to deduct it in 2018? Normally the requirements for a deduction are tha...
by jebmke
Sun Dec 10, 2017 9:26 am
Forum: Personal Finance (Not Investing)
Topic: Turbo Tax bug with Medical Expenses
Replies: 7
Views: 566

Re: Turbo Tax bug with Medical Expenses

Turbo Tax fiddles with their Federal software up through about the third week of January. I wouldn't waste much time with the versions they issue in December. They often don't finalize the State software until a week or two later. Most tax software is updated frequently well into March. After 10 ye...
by jebmke
Sun Dec 10, 2017 9:20 am
Forum: Investing - Theory, News & General
Topic: Why Are So Many Companies Announcing Share Buyback?
Replies: 32
Views: 2863

Re: Why Are So Many Companies Announcing Share Buyback?

So the theory is that stock buybacks boost the stock price and this rewards shareholders. Is there any data on this? How much of a boost are we talking about? If such a thing is true one could just by the stock ahead of the announced buyback and profit on that move. Unlike a dividend which is suppo...
by jebmke
Sat Dec 09, 2017 6:01 pm
Forum: Investing - Theory, News & General
Topic: TSM vs High Dividend Yield if I never choose to sell?
Replies: 36
Views: 2238

Re: TSM vs High Dividend Yield if I never choose to sell?

Wouldnt my dividends be taxed at 15%? The same as LT capital gains? I you play your cards right you won't pay capital gains tax. When the market tanks, you will harvest losses and carry them over. And if you have no losses to carry over you will sell the shares with the highest cost basis so your g...
by jebmke
Sat Dec 09, 2017 5:53 pm
Forum: Personal Finance (Not Investing)
Topic: Prepayment of SALT Taxes? [State and Local]
Replies: 203
Views: 13932

Re: Prepayment of SALT Taxes? [State and Local]

Thesaints wrote:
Sat Dec 09, 2017 5:50 pm
If I don’t write it in, it’t won’t appear. That much is certain.
True.

As I have indicated before, it would probably be a last resort pull forward for me. Other bunching items gain me benefit on my state return whereas this would not. Best of luck.
by jebmke
Sat Dec 09, 2017 5:44 pm
Forum: Personal Finance (Not Investing)
Topic: Prepayment of SALT Taxes? [State and Local]
Replies: 203
Views: 13932

Re: Prepayment of SALT Taxes? [State and Local]

State You would need to make sure it doesn't appear on the state return. Most tax software will drop the State estimated payments entered on the Federal return to the state return. Just need to make sure that the state return doesn't have anything that should not be refunded. Edit - I just entered a...
by jebmke
Sat Dec 09, 2017 5:28 pm
Forum: Personal Finance (Not Investing)
Topic: Prepayment of SALT Taxes? [State and Local]
Replies: 203
Views: 13932

Re: Prepayment of SALT Taxes? [State and Local]

Most software wants details entered on a worksheet. I don't believe TT allows input on line 5 of Sched A (unless you want to mail it in; no e-file). Looks like TT only allows input for 2016 and 2017 estimated taxes paid in 2017 unless you use Line 7 which look like a catchall and may not be correct...
by jebmke
Sat Dec 09, 2017 5:20 pm
Forum: Personal Finance (Not Investing)
Topic: Prepayment of SALT Taxes? [State and Local]
Replies: 203
Views: 13932

Re: Prepayment of SALT Taxes? [State and Local]

Thesaints wrote:
Sat Dec 09, 2017 5:10 pm
Sure! In fact the best thing that a smart investor can do at present is assume that the tax law won’t change and do all of his/her planning for the future based on that.
You can make and act on any assumption you want. It just can't be discussed here.
by jebmke
Sat Dec 09, 2017 4:46 pm
Forum: Personal Finance (Not Investing)
Topic: Does this happen to you? Educating friends about personal finance
Replies: 104
Views: 5694

Re: Does this happen to you? Educating friends about personal finance

It seems like lots of folks are happy to recommend a specific car brand or appliance or vacation spot, but not actually happy to recommend Vanguard and index funds. What's up with that? I don't do those either. Cars and vacation spots are highly dependent on tastes and I don't pretend to know what ...
by jebmke
Sat Dec 09, 2017 2:52 pm
Forum: Personal Finance (Not Investing)
Topic: Prepayment of SALT Taxes? [State and Local]
Replies: 203
Views: 13932

Re: Prepayment of SALT Taxes? [State and Local]

One may want to consider the prepayment (if not subject to AMT) with the possible pending changes for next year. This raises an interesting question. If one pays them this year and they are disallowed as a deduction for 2017, since they were not paid in 2018 would they then not be deductible in 2018?
by jebmke
Sat Dec 09, 2017 1:56 pm
Forum: Personal Finance (Not Investing)
Topic: Prepayment of SALT Taxes? [State and Local]
Replies: 203
Views: 13932

Re: Prepayment of SALT Taxes? [State and Local]

OK, so again I ask: because of the current uncertainty, can one act now (prepay state income tax) and decide later (which year to take the deduction, if, indeed, there remains an option)? Probably not. If you are a cash basis taxpayer, deductions (which I distinguish from adjustments like IRA and H...
by jebmke
Sat Dec 09, 2017 12:43 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA for Minors, can I invest without a 1099?
Replies: 8
Views: 649

Re: Roth IRA for Minors, can I invest without a 1099?

Thank you all. These were all small earnings from snow shoveling, leak raking, dog walking, plant watering, garage cleaning, etc. from many different neighbors...no where close to $600 from any family. It sounds like the notebook will suffice. Is this ledger something I have to show Vanguard when d...
by jebmke
Sat Dec 09, 2017 12:32 pm
Forum: Investing - Theory, News & General
Topic: Vanguard year end distributions - updated estimates
Replies: 47
Views: 5160

Re: Vanguard year end distributions - updated estimates

I have about 100 REIT (VGSLX) funds in my portfolio. Net income availability says $1.32 but estimated QDI says 0%. Does that mean I am supposed to receive $132 ($1.32 x 100) but there won't be any dividend payout so I get $0 as dividend? All dividends are ordinary dividends (unless from tax-exempt ...
by jebmke
Sat Dec 09, 2017 12:17 pm
Forum: Personal Finance (Not Investing)
Topic: Prepayment of SALT Taxes? [State and Local]
Replies: 203
Views: 13932

Re: Prepayment of SALT Taxes? [State and Local]

As far as I know, taxes can only be deducted in the year they are paid. It is not clear whether 2018 taxes paid in 2017 can be deducted in 2017.
by jebmke
Sat Dec 09, 2017 11:54 am
Forum: Personal Consumer Issues
Topic: Do people still use AAA?
Replies: 176
Views: 9944

Re: Do people still use AAA?

Some new cars don't have spares. Road service is your only choice then.
by jebmke
Sat Dec 09, 2017 11:41 am
Forum: Investing - Theory, News & General
Topic: Trying to nail down asset allocation for second bucket
Replies: 43
Views: 1478

Re: Trying to nail down asset allocation for second bucket

Semi-retired here. I have two buckets too but use them differently than you. Bucket 1 has 10 years worth of annual expenses in bonds which is about 30% of my asset, and Bucket 2 is 100% stocks. In bad years, I take money from Bucket 1 to supplement my income. I good years, I take money from Bucket ...
by jebmke
Sat Dec 09, 2017 11:12 am
Forum: Personal Finance (Not Investing)
Topic: Prepayment of SALT Taxes? [State and Local]
Replies: 203
Views: 13932

Re: Prepayment of SALT Taxes? [State and Local]

I have never had an audit. Did my own taxes for 40plus years. Somebody at work said he suspect the reason is I used TurboTax. More likely it is because you haven't had anything on your returns that triggers an audit. I have used TT and HRBlock and have had two audits but I had unusual items on the ...
by jebmke
Sat Dec 09, 2017 10:21 am
Forum: Investing - Theory, News & General
Topic: Vanguard year end distributions - updated estimates
Replies: 47
Views: 5160

Re: Vanguard year end distributions - updated estimates

I have about 100 REIT (VGSLX) funds in my portfolio. Net income availability says $1.32 but estimated QDI says 0%. Does that mean I am supposed to receive $132 ($1.32 x 100) but there won't be any dividend payout so I get $0 as dividend? No, you should receive $132 in dividends, and with 0% QDI, th...
by jebmke
Sat Dec 09, 2017 8:36 am
Forum: Personal Finance (Not Investing)
Topic: Does this happen to you? Educating friends about personal finance
Replies: 104
Views: 5694

Re: Does this happen to you? Educating friends about personal finance

I avoid discussing finance with friends and family. There is no upside and the downside is losing a friend or adversely impacting a family relationship.

The one exception is that I do answer tax questions that are within my scope of knowledge.
by jebmke
Fri Dec 08, 2017 11:12 am
Forum: Personal Finance (Not Investing)
Topic: Prepayment of SALT Taxes? [State and Local]
Replies: 203
Views: 13932

Re: Prepayment of SALT Taxes? [State and Local]

Only skimmed this quickly but these cases seem to be same year payments (e.g. 2017 not 2018).
by jebmke
Thu Dec 07, 2017 9:20 pm
Forum: Personal Finance (Not Investing)
Topic: Should I file taxes w/o her?
Replies: 54
Views: 3444

Re: Should I file taxes w/o her?

This is something that is deterministic. You can run the taxes both ways and prove to yourself which is best. I have done hundreds of returns and can only recall three times when it made sense to file Married Filing Separately. In all three cases there were some odd circumstances and even then, it w...
by jebmke
Thu Dec 07, 2017 4:36 pm
Forum: Personal Finance (Not Investing)
Topic: Prepayment of SALT Taxes? [State and Local]
Replies: 203
Views: 13932

Re: Prepayment of SALT Taxes? [State and Local]

Pub 17, page 151 states that there are two conditions which must be met. One, the tax must be imposed on you and two, the tax must be paid. It does not speak to the year. I hesitate to bring this up because it may sound a little crazy but I really don't think I know for sure what the words "imposed...
by jebmke
Thu Dec 07, 2017 3:36 pm
Forum: Personal Finance (Not Investing)
Topic: Prepayment of SALT Taxes? [State and Local]
Replies: 203
Views: 13932

Re: Prepayment of SALT Taxes? [State and Local]

Let me make sure I'm following you. There is a standard (that I've read "somewhere") that you cannot deduct a payment for a tax that wasn't imposed on you. And since the estimated payment is not an "imposed tax", there is essentially an exception to the "imposed tax" deductibility rule that allows ...
by jebmke
Thu Dec 07, 2017 3:24 pm
Forum: Personal Consumer Issues
Topic: Okay come clean....How man people share passwords for streaming services?
Replies: 41
Views: 1568

Re: Okay come clean....How man people share passwords for streaming services?

I only share with my wife, but we are in the same household so I don't think it matters... or is really what you meant. So I guess my answer is no, never. Can anyone cite specific prohibitions? I think it would be subject to whatever the terms of service agreed by the purchaser. It may vary by serv...
by jebmke
Thu Dec 07, 2017 8:53 am
Forum: Personal Finance (Not Investing)
Topic: Prepayment of SALT Taxes? [State and Local]
Replies: 203
Views: 13932

Re: Prepayment of SALT Taxes? [State and Local]

The objection most often raised here is that it's just not okay to deduct future year tax liabilities in the current year because you are not liable for them. The contradiction is that it seems that argument says it's okay to make an estimated payment on 1/1/18 for 2018 income that hasn't yet been ...
by jebmke
Tue Dec 05, 2017 6:47 pm
Forum: Personal Finance (Not Investing)
Topic: Prepayment of SALT Taxes? [State and Local]
Replies: 203
Views: 13932

Re: Prepayment of SALT Taxes? [State and Local]

I'm nearly certain that the federal tax treatment of a SALT refund depends on whether those taxes were deducted in the prior year. If you deduct SALT on 2017 tax return, any refund issued in 2018 would be considered an addition to income for 2018 (irrespective of whether you take standard deduction...
by jebmke
Tue Dec 05, 2017 2:38 pm
Forum: Personal Finance (Not Investing)
Topic: Prepayment of SALT Taxes? [State and Local]
Replies: 203
Views: 13932

Re: Prepayment of SALT Taxes? [State and Local]

I only have space in the 15% marginal rate. A DAF donation gets me the 15% at the Federal level and ~7.4% at the state level. Paying state taxes ahead only gets me the 15% rate for 2018 taxes. For 2017 state taxes it is probably a wash at best due to the marginal rate on the refund in 2018. I'll pro...
by jebmke
Tue Dec 05, 2017 2:28 pm
Forum: Investing - Help with Personal Investments
Topic: Medicare and retirement for high earner
Replies: 49
Views: 2375

Re: Medicare and retirement for high earner

As someone who plans my whole life (till something changes :D ), I'd say you need to start planning at least ten years in advance. I had a simple spreadsheet that showed by much my pension and SS grew each year. I worked at an OK job and fulfilled my passion of travel - up to five overseas trips a ...