Search found 1652 matches

by Chip
Sat Dec 16, 2017 3:28 pm
Forum: Personal Consumer Issues
Topic: Electric Energy Usage
Replies: 34
Views: 1379

Re: Electric Energy Usage

I'll put my bet on water heating as well. Plus the kids probably are going in and out of the house a bunch. For us: 2800 sq ft. 2 story house, unfinished but partially insulated basement (stays at house temp - 5 degrees). 2 people. Gas heat and hot water. Currently average about 640 kwh/month throug...
by Chip
Sat Dec 16, 2017 10:50 am
Forum: Personal Consumer Issues
Topic: New Car - Always use parking brake ?
Replies: 34
Views: 2819

Re: New Car - Always use parking brake ?

Cars with rear disc brakes have a small drum brake within the inner rotor. That is for the parking brake. Not all of them. See Spirit Rider's posts. My 2013 Accord has a mechanical device that pushes the disc brake pads into contact with the rotor. No separate little drum brake thingie. Though my e...
by Chip
Sat Dec 16, 2017 9:58 am
Forum: Personal Finance (Not Investing)
Topic: Prepayment of SALT Taxes? [State and Local]
Replies: 270
Views: 20000

Re: be careful, no longer allowed to prepay local and state taxes for a deduction

If I didn't itemize, I would also get whacked because the loss of both the standard and the extra exemption for seniors is greater than the increase in the standard deduction. A lot of seniors would seem to be in this boat. There is no extra exemption for seniors under current law. There is a large...
by Chip
Fri Dec 15, 2017 5:13 am
Forum: Personal Finance (Not Investing)
Topic: Prepayment of SALT Taxes? [State and Local]
Replies: 270
Views: 20000

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

FACT: We are talking about making an estimated payment for the following year, not for the one about to end. So is it your position that the difference in those situations negates the requirement for a good faith estimate? I hope you haven't already forgotten Pub 17, mentioned earlier in this threa...
by Chip
Fri Dec 15, 2017 5:04 am
Forum: Personal Finance (Not Investing)
Topic: Prepayment of SALT Taxes? [State and Local]
Replies: 270
Views: 20000

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

If you made a large estimated payment for 2018 and then, in addition, continued to have your normal withholdings made from your paycheck, then you'll end with a refund and potentially exceed the guidelines. But why would you ever do that? The only reason I said anything is that Thesaints suggested ...
by Chip
Thu Dec 14, 2017 12:35 pm
Forum: Personal Finance (Not Investing)
Topic: Prepayment of SALT Taxes? [State and Local]
Replies: 270
Views: 20000

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

People here have expressed doubts a massive incrase in allowances is kosher. Of course, if I can do that even better. I won’t have to give the free loan to California. You seem to attribute bad faith to estimated payments quite freely and I see you haven’t informed yourself about private letter rul...
by Chip
Thu Dec 14, 2017 5:35 am
Forum: Personal Finance (Not Investing)
Topic: Prepayment of SALT Taxes? [State and Local]
Replies: 270
Views: 20000

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

By 4/15/20 I have to file the 2019 forms and the state sends me a 1099-G quoting 10k. Since in 2018 I took the standard deduction state tax refunds are not taxable. Essentially, I loaned to the state 10k at 0 interest for ~15 months. That’s probably equivalent to losing $150-200 after taxes. What’s...
by Chip
Wed Dec 13, 2017 6:44 am
Forum: Investing - Help with Personal Investments
Topic: Multiple TOD beneficiaries for individual stock
Replies: 4
Views: 264

Re: Multiple TOD beneficiaries for individual stock

Hi, and welcome!

An account at Fidelity would allow multiple TOD beneficiaries. Obviously he would have to open an account there and transfer the stock into it.

I assume other brokers would allow the same, but I'm only currently familiar with Fidelity.
by Chip
Tue Dec 12, 2017 5:06 pm
Forum: Personal Consumer Issues
Topic: Moto G5 Plus: Software updates?
Replies: 79
Views: 4175

Re: Moto G5 Plus: Software updates?

batpot wrote:
Tue Dec 12, 2017 4:23 pm
with the phone unlocked, long press the "home" soft button (the circle).
Thanks! Got it. Will still leave it off. :)
by Chip
Tue Dec 12, 2017 2:55 pm
Forum: Personal Finance (Not Investing)
Topic: Prepayment of SALT Taxes? [State and Local]
Replies: 270
Views: 20000

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

I looked at 82-208 and it's over my head. But I figured I'd throw this out there for smarter minds than mine to chew on. I'm not a CPA or an attorney, but my primary takeaway from 82-208 is that it clearly states that a good faith estimate of state income tax liability is ONE required element for a...
by Chip
Tue Dec 12, 2017 12:54 pm
Forum: Personal Consumer Issues
Topic: Concert Decision and Advice
Replies: 41
Views: 2259

Re: Concert Decision and Advice

Just go. Buy good seats, but not too close to the stage. Take earplugs just in case it's too loud.
by Chip
Tue Dec 12, 2017 12:51 pm
Forum: Personal Consumer Issues
Topic: Moto G5 Plus: Software updates?
Replies: 79
Views: 4175

Re: Moto G5 Plus: Software updates?

Re Speech to Text - I would love to get this to work on my G5+. However, I have not been able to figure that out unless I turn on OK Google. OK Google listens to you all the time and reacts. I don't need Google listening to me all the time, so I don't want that feature on. On an older Android, my k...
by Chip
Tue Dec 12, 2017 10:25 am
Forum: Investing - Theory, News & General
Topic: Tilting sectors, regions and countries? Which ones.
Replies: 14
Views: 861

Re: Tilting sectors, regions and countries? Which ones.

Are there any sectors, regions or countries you are overweighting or underweighting? Personally I am looking at underweighting energy and consumer staples and overweighting technology and consumer discretionary but I have not done this to any great extent yet. No. What is it that you think you know...
by Chip
Tue Dec 12, 2017 10:22 am
Forum: Personal Consumer Issues
Topic: Snow Tires? Worth it?
Replies: 147
Views: 6073

Re: Snow Tires? Worth it?

As an engineer this made me cringe... I am hoping this was software engineers ;-) I work with ChemEs and MechEs and I think all of us mount snows in the winter (Boston area) Cringing engineer here as well. I had 4 snows mounted on cheap steelies when I lived in heavy snow country. It was a huge dif...
by Chip
Tue Dec 12, 2017 7:01 am
Forum: Personal Finance (Not Investing)
Topic: Prepayment of SALT Taxes? [State and Local]
Replies: 270
Views: 20000

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

Although the facts above do not exactly mirror the original question - can one prepay his/her 2018 estimated state income taxes in the 2017 year - the Revenue Ruling cites that "In Lillian Bacon Glassell et al. v. Commissioner, 12 T.C. 232, acquiescence, C.B. 1949-2, 2, and Estate of Aaron Lowenste...
by Chip
Tue Dec 12, 2017 6:56 am
Forum: Personal Finance (Not Investing)
Topic: Prepayment of SALT Taxes? [State and Local]
Replies: 270
Views: 20000

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

One nagging doubt arises.... If this is a legitimate manuver, why hasn't it been used extensively already by "bunchers" to push even more deductions into the year they opt to itemize? I have been using this technique for bunching purposes since the early 2000s. I haven't been audited about it, but ...
by Chip
Tue Dec 12, 2017 6:43 am
Forum: Personal Finance (Not Investing)
Topic: Prepayment of SALT Taxes? [State and Local]
Replies: 270
Views: 20000

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

You guys really crack me up. Research “private letter ruling”. Maybe “frivolous return penalties” too. Perhaps you can show us how anything about a PLR relates to this statement of yours: "Well, if one asks in writing and there is no reply within 30 days, then there cannot be any fines applied it c...
by Chip
Mon Dec 11, 2017 5:06 pm
Forum: Personal Finance (Not Investing)
Topic: Prepayment of SALT Taxes? [State and Local]
Replies: 270
Views: 20000

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 Chip
Mon Dec 11, 2017 4:52 pm
Forum: Personal Finance (Not Investing)
Topic: Prepayment of SALT Taxes? [State and Local]
Replies: 270
Views: 20000

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

Thesaints wrote:
Mon Dec 11, 2017 4:51 pm
Well, if one asks in writing and there is no reply within 30 days, then there cannot be any fines applied it case it is not allowed.
Where on earth did you get that idea?
by Chip
Sun Dec 10, 2017 2:18 pm
Forum: Personal Consumer Issues
Topic: What MPG App Do You Use To Track Fuel Usage ?
Replies: 61
Views: 2359

Re: What MPG App Do You Use To Track Fuel Usage ?

As for the total cost of ownership, I would agree. Insurance premiums far exceed fuel costs, even for an inexpensive car. As with everything else, it depends. My fuel expenses were >5x my insurance costs on my '98 Camry. 243k miles, 16.8k in fuel costs, 3.1k in insurance costs. The average fuel cos...
by Chip
Sun Dec 10, 2017 10:01 am
Forum: Personal Finance (Not Investing)
Topic: Prepayment of SALT Taxes? [State and Local]
Replies: 270
Views: 20000

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 Chip
Sun Dec 10, 2017 9:55 am
Forum: Personal Finance (Not Investing)
Topic: timing of new conversion to Roth if recharacterizing previous year conversion
Replies: 3
Views: 207

Re: timing of new conversion to Roth if recharacterizing previous year conversion

My understanding is the waiting period applies if you convert the same funds after recharacterizing a Roth conversion. Therefore if you convert and recharacterize less than 1/2 of your original IRA balance(s), the waiting period does not apply. For these purposes the IRS looks at all your TIRAs as ...
by Chip
Sun Dec 10, 2017 7:47 am
Forum: Personal Finance (Not Investing)
Topic: Pre-Pay Property Taxes in 2017?
Replies: 23
Views: 2248

Re: Pre-Pay Property Taxes in 2017?

Posted this yesterday in a similar thread. https://ustaxcourt.gov/InOpHistoric/HOFFMAN.TCM.WPD.pdf See Section II on pages 6 & 7. Thanks for posting that. Everyone should realize that the tax law relating to property taxes is different than the law relating to state income taxes . Ignore the differ...
by Chip
Sun Dec 10, 2017 7:19 am
Forum: Personal Finance (Not Investing)
Topic: timing of new conversion to Roth if recharacterizing previous year conversion
Replies: 3
Views: 207

Re: timing of new conversion to Roth if recharacterizing previous year conversion

Welcome! Glad you "de-lurked". Suppose I converted part of a Rollover IRA (tIRA) to a new Roth IRA during the summer of 2017, and at the time I made sure to convert enough to push me into the 25% bracket. Suppose that in March 2018 when I complete my taxes that I want to do a partial recharacterizat...
by Chip
Sun Dec 10, 2017 7:09 am
Forum: Personal Finance (Not Investing)
Topic: Strategy for filling out 15% bracket
Replies: 2
Views: 702

Re: Strategy for filling out 15% bracket

I'm in Georgia where either action would result in a 6% tax. Anything else to consider? I think you've got the basics covered. The other thing to consider is if the extra income would affect any tax credits you might otherwise be eligible for. Also, ACA premiums/credits if you're buying health insu...
by Chip
Sun Dec 10, 2017 7:00 am
Forum: Forum Issues and Administration
Topic: Thank you Admins
Replies: 25
Views: 2004

Re: Thank you Admins

Having helped moderate a high-volume forum for a number of years, I can say without doubt that it’s not trivial. I am constantly impressed at how well this board is run and maintained. Please add my thanks to others’. I also helped moderate a high volume investing board for years. After years of su...
by Chip
Sun Dec 10, 2017 6:38 am
Forum: Personal Finance (Not Investing)
Topic: Prepayment of SALT Taxes? [State and Local]
Replies: 270
Views: 20000

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 Chip
Sun Dec 10, 2017 4:56 am
Forum: Investing - Theory, News & General
Topic: Bitcoin now the largest quantifiable bubble in history?
Replies: 88
Views: 6682

Re: Bitcoin now the largest quantifiable bubble in history?

buccimane wrote:
Fri Dec 08, 2017 4:28 pm
lazydavid wrote:
Thu Dec 07, 2017 7:50 pm
telemark wrote:
Thu Dec 07, 2017 7:03 pm
But the coin got away from me, rolled away, and disappeared down a sewer grate :(
Did it float? We all float down here.... :twisted:
+1
underappreciated comment :twisted:
I was wondering how many readers got IT.
by Chip
Sat Dec 09, 2017 2:11 pm
Forum: Personal Finance (Not Investing)
Topic: Prepayment of SALT Taxes? [State and Local]
Replies: 270
Views: 20000

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

Leesbro63 wrote:
Sat Dec 09, 2017 1:47 pm
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)?
Unequivocally, NO. You are a cash basis taxpayer. Year paid = year of deduction.
by Chip
Sat Dec 09, 2017 10:13 am
Forum: Personal Finance (Not Investing)
Topic: Prepayment of SALT Taxes? [State and Local]
Replies: 270
Views: 20000

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

...When is a tax "imposed" ? Estimated tax payments are due before the end of the quarter they refer to, for instance. And we know for a fact that paying in 2017 personal property taxes with a due date in 2018 is kosher . I am not sure we know this for a fact. People do it, but that does not mean i...
by Chip
Sat Dec 09, 2017 9:54 am
Forum: Investing - Help with Personal Investments
Topic: Deferring First RMD
Replies: 16
Views: 814

Re: Deferring First RMD

From the horse's mouth: Required beginning date. Unless the rule for 5% owners applies, you generally must begin to receive distributions from your qualified retirement plan by April 1 of the year that follows the later of: The calendar year in which you reach age 70½, or The calendar year in which ...
by Chip
Sat Dec 09, 2017 8:41 am
Forum: Investing - Help with Personal Investments
Topic: Roth Conversion ... Timing
Replies: 19
Views: 1587

Re: Roth Conversion ... Timing

I agree with Silk McCue. It has to be done by the end of the year. Don't forget that you can convert more than you think you need to, then recharacterize part of it once you know exactly what your tax return is going to look like. Just make SURE that you recharacterize the excess. The deadline for t...
by Chip
Sat Dec 09, 2017 6:33 am
Forum: Personal Consumer Issues
Topic: Moto G5 Plus: Software updates?
Replies: 79
Views: 4175

Re: Moto G5 Plus: Software updates?

I'll start by trying an offline GPS. And if it does not work well I'll try Google Maps with cellular connectivity. Google Maps has a "mostly offline" capability. I use it on my G5+ because I'm on a prepaid plan and would like to preserve data. You can download (via wifi, inside of the Google Maps a...
by Chip
Fri Dec 08, 2017 2:20 pm
Forum: Personal Finance (Not Investing)
Topic: Prepayment of SALT Taxes? [State and Local]
Replies: 270
Views: 20000

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

But is that estimated tax for the current tax year or the next tax year? If you can make a good faith estimate for the next year, why not the year after that and so on. In any case, unless your state accounts for the years properly (like CA evidently), it doesn't work. In most states, estimated pay...
by Chip
Fri Dec 08, 2017 1:48 pm
Forum: Personal Finance (Not Investing)
Topic: Prepayment of SALT Taxes? [State and Local]
Replies: 270
Views: 20000

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). Correct. Apparently, long ago, there was a question whether estimated state tax payments made in a year could be deducted on the federal return in that tax year. I believe this was finally resolved in Rev....
by Chip
Fri Dec 08, 2017 1:25 pm
Forum: Personal Finance (Not Investing)
Topic: Prepayment of SALT Taxes? [State and Local]
Replies: 270
Views: 20000

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

The only relevant one that I found was TAM 9303003: http://www.legalbitstream.com/scripts/isyswebext.dll?op=get&uri=/isysquery/irl4d2/2/doc. That one allowed the deduction, though the tax was with respect to the earlier year but otherwise payable in the later year. Thanks, Bruce. IANAL, but it seem...
by Chip
Fri Dec 08, 2017 10:59 am
Forum: Personal Finance (Not Investing)
Topic: Prepayment of SALT Taxes? [State and Local]
Replies: 270
Views: 20000

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

In Revenue Ruling 82-208, the taxpayer paid $11,000 of state income taxes in December 1981 even though he had no reasonable basis to believe he would owe the money. He received a refund of the $11,000 in 1982. Presumably he did this because under the Economic Recovery Tax Act of 1981, the tax rates...
by Chip
Fri Dec 08, 2017 10:37 am
Forum: Personal Consumer Issues
Topic: Extended warranty on 2018 Outback
Replies: 47
Views: 1601

Re: Extended warranty on 2018 Outback

Yeah, this is the way I'm leaning I think. This car is more of a computer than an automobile and I'd suspect repairing/replacing any of the electronics would cost $1375 or more. Electronics have been in cars for many years and are pretty darn reliable. Yes, there are more of them now. But typically...
by Chip
Fri Dec 08, 2017 8:23 am
Forum: Personal Consumer Issues
Topic: sharing cost of tree cutting
Replies: 31
Views: 1591

Re: sharing cost of tree cutting

OP, in a later post you said that the tree doesn't really overhang his property, and trimming your tree really isn't going to significantly affect the amount of leaves getting in his pool. If those are the facts I think your neighbor is being unreasonable and I don't think you should trim your tree,...
by Chip
Fri Dec 08, 2017 4:41 am
Forum: Personal Finance (Not Investing)
Topic: At what age your investments start making more money than you?
Replies: 107
Views: 7326

Re: At what age your investments start making more money than you?

It happened every single year from 1995 through 1999. I thought I was an investing genius. :D
by Chip
Fri Dec 08, 2017 4:10 am
Forum: Personal Finance (Not Investing)
Topic: Question about IRMAA and first couple years of retirement
Replies: 17
Views: 1680

Re: Question about IRMAA and first couple years of retirement

You might want to open a solo 401k because any contribution to IRA will be added back to you AGI. That’s why it’s called Modified AGI. https://turbotax.intuit.com/tax-tips/irs-tax-return/what-is-the-difference-between-agi-and-magi-on-your-taxes/L7kHckNS3 This definition of MAGI isn't correct for IR...
by Chip
Fri Dec 08, 2017 4:02 am
Forum: Personal Finance (Not Investing)
Topic: Prepayment of SALT Taxes? [State and Local]
Replies: 270
Views: 20000

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

If I think in good faith that I will lose my job (and therefore miss tax withholdings) can I pay 4 quarters of estimated tax all together ? I kind of don't trust me to have all that cash available and not spend it in trinkets. If you lose your job you're probably not going to be needing to do any w...
by Chip
Thu Dec 07, 2017 4:17 pm
Forum: Personal Finance (Not Investing)
Topic: Prepayment of SALT Taxes? [State and Local]
Replies: 270
Views: 20000

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 Chip
Thu Dec 07, 2017 2:05 pm
Forum: Personal Finance (Not Investing)
Topic: Prepayment of SALT Taxes? [State and Local]
Replies: 270
Views: 20000

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

I will play devils advocate here. The estimated payment is not an imposed tax. Obviously there are consequences (penalties and interest) for lack of timely payments but they are not a tax. So the question still remains whether the payment is allowed for a deduction on Federal. By the time you file ...
by Chip
Thu Dec 07, 2017 1:52 pm
Forum: Investing - Theory, News & General
Topic: Did Capital One 360 Savings raise rates?
Replies: 31
Views: 3794

Re: Did Capital One 360 Savings raise rates?

It figures. I just pulled everything out of Cap One 360 for something higher yielding. :oops:

I guess I can put it back - the account is still open.
by Chip
Thu Dec 07, 2017 1:41 pm
Forum: Investing - Help with Personal Investments
Topic: Which to do - Roth conversion or LTCG?
Replies: 21
Views: 982

Re: Which to do - Roth conversion or LTCG?

I suppose if you are in a situation where you are extremely likely to never need to sell the stock, and you're not worried about its value to your heirs, you might just consider keeping it . I sure hope the Diversification Police don't come after me! :D If you do decide to keep selling, I would foll...
by Chip
Thu Dec 07, 2017 12:18 pm
Forum: Investing - Help with Personal Investments
Topic: Which to do - Roth conversion or LTCG?
Replies: 21
Views: 982

Re: Which to do - Roth conversion or LTCG?

I didn't check your math closely, but the phantom 30% "bracket" is real for someone in your situation. Each additional $1 of ordinary income is taxed at 15% and it also pushes $1 of capital gains from being taxed at 0% to 15%. 15+15=30. Note that this effect ends when ordinary income exceeds the top...
by Chip
Thu Dec 07, 2017 7:09 am
Forum: Personal Finance (Not Investing)
Topic: Prepayment of SALT Taxes? [State and Local]
Replies: 270
Views: 20000

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

1. Will the state apply a payment received in 2017 toward 2018, or will it just add it to the 2017 ledger? It would seem that if they don't apply to 2018, the only "harm" will be that it will show up as refunded in 2018 and will be taxable income in 2018. In that case, all you've really lost is the...
by Chip
Thu Dec 07, 2017 6:12 am
Forum: Personal Finance (Not Investing)
Topic: Prepayment of SALT Taxes? [State and Local]
Replies: 270
Views: 20000

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

What I'm considering is not only prepaying the entire tax amount (and decrease withholdings), but going over . It will depend on the brackets, but it should be a non brainer for new retirees, or those expecting substantially lower income for some reason. You should not prepay more than a good faith...
by Chip
Wed Dec 06, 2017 2:33 pm
Forum: Personal Finance (Not Investing)
Topic: bank secrecy act-10k
Replies: 11
Views: 1178

Re: bank secrecy act-10k

None of those transactions are a problem. It is CASH transactions of 10k or over that get flagged & reported.