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I have a 2% mortgage and I am nearing retirement. My plan is to use a combination of I bonds and MYGA's to match the liability payments to reduce my Sequence of Return Risk as long as the interest rates remain higher. I understand that some MYGA's allow 10% withdrawals each year.

Here’s how businesses can deduct startup costs from their federal taxes

https://www.irs.gov/newsroom/heres-how- ... eral-taxes

Start up expenses are not deductible until the business starts. The business starts when it is ready to accept or solicit revenue. For example when a store opens its doors or when a salesman knocks on doors or a landlord hangs a for rent sign,.

However, if expenses and no income return will likely be flagged by irs computer.

I use Excel frequently over the years in business. I have had two times a file was unable to open. Both times I installed "open office" and it was able to open the file and able to file it as an excel file. I see that Open Office is not longer available but it seems to be under Apache Open Office:

https://www.openoffice.org/download/index.html

Calculate how much interest you are losing.

Rough estimate: Average balance $ 9,000 over 3 years at 3% (3.9 -.9) is $270 per year or $810.

Is the value you get credited on trade less $810 still a good deal? Can you use interest cost to negotiate better trade in value.. meet half way?

In addition, many states allow deduction of trade in before calculating sales tax.

It matters for social security benefits

On the bright side, when you’re down to your last (negative!) $1B in cash, they could still find money to pay the executives bonuses in advance right before the bank folded. https://www.axios.com/2023/03/11/silicon-valley-bank-paid-bonuses-fdic Silicon Valley Bank on Friday paid out annual bonuses to eligible U.S. employees, just hours before the bank was seized by the U.S. government, I participated in helping the FDIC take over banks in the 80s. I was part of a team that entered bank just before closing to work through the night to be able to have receiving bank ready to open the next morning. My first job upon entering was to read to the employees that their jobs were terminated. I can understand their desire to get their pay/bonuses be...

I think there is an intermediate step being missed. You said the house was joint with your sister. Did you gift the house to your sister before it was sold or did you and your sister sell the house jointly and the proceeds went to her? Yes, we sold the home jointly and the proceeds - except for $750 - went to her. Not that it matters, but the home sat unoccupied the entire time and sold ASIS. I think you need to talk to a knowledgeable tax preparer. The 1099S doesn't make sense. If you owned 1/2 interest at the time of sale in the home then you would be attributed 1/2 of the sale and then the cash received would be a gift to your sister. If you owned 1/2 interest and quit claimed your interest prior to the sale then the full amount of the ...

I think there is an intermediate step being missed. You said the house was joint with your sister. Did you gift the house to your sister before it was sold or did you and your sister sell the house jointly and the proceeds went to her?

Read carefully. Many leases require full payment of all lease payments. Unlike a loan where you are committed to pay balance, many leases require paying all payments without a discount.

As a tax preparer, I am interested in what "good" means to others: 1. Is it low price? 2. Is it fast turnaround? 3. Is it accuracy (how does one know if its accurate)? 4. Is it a preparer who takes aggressive tax positions? What qualities define good? I’m also searching for a new tax preparer because the one I have now is “not good” for the following reasons: 1) She “overlooked” the 1099-r for taxable distribution from an inherited IRA 2) She “missed” the $12,000 of estimated tax paid for a Roth rollover 4) She inexplicably reported capital gains from U.S. index funds as foreign income All the documents are uploaded as PDF files so it’s not like they were misplaced. I now have to spend the weekend fact-checking the return because...

As a tax preparer, I am interested in what "good" means to others:

1. Is it low price?
2. Is it fast turnaround?
3. Is it accuracy (how does one know if its accurate)?
4. Is it a preparer who takes aggressive tax positions?

What qualities define good?

I have a few reasons for delaying SS to 70.

1. My wife has less past earnings and is 8 years younger than me. (part rational, part emotional)

2. I am 68 and still working so any additional income will be taxed at a higher rate than when I stop working. (Rational)

3. The amount I forgo now if invested would be limited to 4% safe withdrawal rate, while the amount "invested" in delaying provides 8%. (part rational, part emotional)

4. Having a higher annuity through the SS benefit allows me to feel comfortable with a higher equity investment. (Emotional)

On the downside, bond rates were very low when I began deferring. The higher they go for long term and the closer I get to 70, the less likely I would defer. (Mostly emotional)

If the child qualifies as a dependent of each, then they can choose which one can take credit. If for some reason they both take the credit and the child lives with both of them then the IRS would give the credit to the parent who had the greater income.

My philosophy on IRS penalties:

If you owe them then add them to the tax and be done with it. It is bad enough writing the tax due check but to be reminded of it months later is like pouring salt on a wound. The initial anxiety over getting and opening a letter from the IRS (which by then probably forgot about the penalty) that you owe an additional $23 plus interest is not worth it. Plus when you get that letter you will probably spend another hour reviewing your records to see if you agree.

No, it does not. I made that mistake on a client and had to switch them back by amending after they got notice. Taught me to check. We learn from our mistakes.

Check out MYGA. Consider 10% ability to draw each year to cover payments if needed

Discuss 4 with wife. She knows your strengths and weaknesses and she will pay price because self employment is rough on family at the beginning.

My wife and I have annual tradition. We take day off of work, no major agenda or plan, go to breakfast, find places to walk and talk maybe at mall or nearby beach or park, maybe window shop, , go to lunch, possibly catch a movie or two, go to earlier dinner to beat crowds.

I do returns also and I agree with the prior comments. Additional thoughts. MFS can put over 65 taxpayers in higher Medicare IRRMA rates. In CT where I practice, many times MFS saves CT tax while federal stays the same. Taxpayers with student loans sometimes do better on their payment requirements when filing separate. Couples that are both working should leave their withholding using single/MFS rates on their W-4s so they don't underpay even if filing jointly. When filing separate need to be careful about matching tax payments and withholding going forward. If a balance is due make sure the spouse who doesn't owe if filing separate knows they do not need to file jointly. Many believe they have to file joint. Filing separate is the default,...

Gladiators2Swansons wrote: ↑Thu Feb 09, 2023 2:58 pm I used cost per remaining mile left in the car. Obviously, nearly every number in that calculation was an estimate.

My method too.

Once we boiled down which car to buy then shopping was compared by estimated cost per remaining mile and applying the following formulas:

49% based on cost:
Cost if insurance, cost of gas, cost of repairs (we used to buy Ford Taurus wagons and they usually needed new trans at some point) , cost of property tax is based on value, reserve for potential hidden costs of vehicle.

51% based on wife's desires

For in depth

https://www.theincometaxschool.com/begi ... beginners/

For regular reading in bite size bits

Kiplinger tax news letter

If you are not maxing out your retirement contributions, you could use withdrawals to cover expenses while increasing 401ks and or IRAs. This would even out taxable income.

When allocating the purchase price to land and building I generally use tax assessor information or appraisal. Use of a reasonable method is what is required.

I have been impressed with Cap1 regarding fraud. Their fraud department called me one night around midnight. Of course I was skeptical it was them so I return call using the number on the card. I was told someone called them and was trying to initiate a transaction. They person had my SS number and my date of birth. I was surprised they knew it wasn't me.

They declined to tell me how they knew. I assume they may have a copy of my voice otherwise I dont know how they knew. They alerted me so that I could take measures to protect my other credit cards.

My best guess is the info came from a doctor office. Since then I never use CC at doctors office.

Some of my cards have 20k limits or lower limits regardless of credit worthiness,

5,000 *.07 = $350 or about $1 per day.

I am considering using a MYGA paying 5% that allows 10% withdrawals instead of paying a 2% mortgage. Love to hear pros and cons.

When I try to evaluate similar questions I try not to react to the current monthly interest rate because my alternatives may come from long term investments. The HELOC rate is based on prime, prime is directly related to the Fed rate increases. The Fed rate increases are related to inflation. The question then becomes what do you think the average rate will be assuming you continue your current repayment plan.

I think an expert is someone who knows more of what he doesn't know than the average person.

Can you see your parents sitting down with an IRS agent and keep a straight face that they had 6 years to change their mail, registrations, insurance, voting cards etc. but just didn't get around to it?

Unless you are her conservator you are not obligated. If she appointed a POA they should file for her.if taxes are due. If she doesn't file the IRS may file a substitute return. If no return is filed and there is an estate, the executor or administrator will need to file if there are any taxes owed and there are assets that can pay the tax.

If you were 5 you would know how.

Maybe a grantor trust would avoid making connection,

I buy printers for my office and personally.

For my office, I look at the price of the printers as merely a down payment on future cartridge's and drums. I calculate the expected per page cost by estimating the life of the printer and the potential cost of cartridges. I say potential because over the years the price will change based on competition and demand.

For home use, I just care about the cost of the printer and its ease of use attaching varies devices.

Also keep in mind that the printers may contain a hard drive with personal identifying information when disposing.

Do othes a favor, don't drive in snow or when roads are went and temperature below freezing.

I only worry when traveling. I stuff them in my luggage and throw out when home.

Do not, repeat do not send them any money. Sending money can restart the statute of limitations if one applies.

That is a good point. On the other hand, by taking SS at FRA, I would have approximately an extra $200k An extra $200k? How does that work? I wonder if he's referring to the SS benefits he'd be receiving between FRA and 70 by claiming at FRA instead of delaying. I wouldn't call that "extra", though. That was my question. But if you retire at FRA in 2023, your maximum monthly benefit would be $3,627. I'm not sure how that turns into $200k. I'm including the spousal benefit. My FRA is 66 years and 8 months. $3627 x 1.5 (with spousal) x 12mths/year x 3.3 year = $217,402. "Extra" may not be the best choice of words but I will have that much more money on hand at 70 to invest if our spending is constant. This can be used to ...

These are my experiences and thoughts on delaying social security. When I reached full retirement age I started taking the amount out to cover debts that were higher interest. Then I deferred it for a couple of reasons. My first reason probably most important is my wife is 8 years younger than me and women tend to live 3 years longer than men so I assume that she'll do much better if I delay it and die earlier. My second reason is I understand my benefit goes up by 8% but also inflation adjusted. If I took the same money up front and did not delay I would invest it but I would be limiting my withdrawals to 4%. So therefore even though I could end up with more money by investing it at a higher rate I may not be able to actually spend that mo...

Read the instructions to form k1. If after you read those instructions you feel comfortable doing yourself then do it yourself.

Just out of curiosity, have any other business owners tried this “mostly retired“ approach to retirement? If so, how has it turned out for you?

I am working towards this solution. I would like to read any that has experience also. Threats I will try to plan for include death proceeds for my wife, cognitive decline, and disability. Benefits include inflation protection, sequence of returns protection higher equity portfolio, personal satisfaction/relevance.

Send to local food bank and take charity deduction?

So your accountant told you what the best practice was and that was to do it monthly. Your business doesn't allow you to do it monthly. So your account gave you the next best thing. I would agree with your accountant that you should do it monthly but if you can't do it monthly you should do it at least once a year knowing that it's possibly you have issues with the IRS for underpaying your payroll taxes on a timely basis. However not doing a payroll at all would cause you even bigger problems

A few comments:

1) On the interest rate for the CC. You will have to pay something each month so therefore the decreasing balances increases the effective interest rate.

2) You will likely reduce your credit score substantially.

3) You may also qualify for substantial credits on new cards possibly $600 anyways but once you pull the trigger on the transfer you may not be eligible for them.

Local

I would wait a year before paying anything extra off. As a new building owner there could be costs that you aren't aware of yet and deferred maintenance issues.

At a minimum I would like to have at least one year's worth of payments in the bank just in case.

Vastly different worlds are incomparable. The 70s, no internet, little use of computers, information about stocks printed nightly, work ethic vastly different, far less regulations, rate of change much slower. People relied on pensions for retirement. Healthcare mostly penicilin, bandages and aspirin. Full war time in Vietnam.

Claiming the 529 funds as tax free can eliminate the tax credits for parents.

Another loan problem is proving sufficient cash flow. Many lenders will not give credit for potential rental income unless you have signed lease and then might only count 75%.