Search found 7136 matches

by Wagnerjb
Wed Jul 18, 2018 9:13 am
Forum: Personal Finance (Not Investing)
Topic: Received IRS notice CP 2000 asking more tax. Need help.
Replies: 18
Views: 1781

Re: Received IRS notice CP 2000 asking more tax. Need help.

Thanks 47 percent and HI investor. This is reassuring. ram, I got one too relating to qualified expenses and the AOTC. See here: https://www.bogleheads.org/forum/viewtopic.php?f=2&t=253141&p=4004768&hilit=IRS#p4004768 Responded on May 24th (one day after I received the notice) with a detailed respo...
by Wagnerjb
Wed Jul 18, 2018 8:28 am
Forum: Personal Finance (Not Investing)
Topic: Received IRS notice CP 2000 asking more tax. Need help.
Replies: 18
Views: 1781

Re: Received IRS notice CP 2000 asking more tax. Need help.

For 2016 my wife and I filed a joint return by using Turbo Tax. Yesterday I received IRS letter ( notice CP 2000) stating that I need to pay more tax. The additional tax demanded pertains to two things: 1) Withdrawal from 529 plans: I have one dependent, my daughter who was a 2nd year medical stude...
by Wagnerjb
Sun Jul 08, 2018 11:17 am
Forum: Investing - Help with Personal Investments
Topic: Diversifying Employee Stock Options when options > 4x portfolio
Replies: 8
Views: 624

Re: Diversifying Employee Stock Options when options > 4x portfolio

As I mentioned earlier, I have no experience with the AMT-related tax issues from ISOs. However, I am aware that the new tax law severely scales back the AMT tax, so you would be wise to understand the new AMT rates. My initial understanding is that AMT doesn't kick in until you reach income of $1 m...
by Wagnerjb
Sun Jul 08, 2018 9:09 am
Forum: Investing - Help with Personal Investments
Topic: Diversifying Employee Stock Options when options > 4x portfolio
Replies: 8
Views: 624

Re: Diversifying Employee Stock Options when options > 4x portfolio

Welcome to the Boglehead forum. I see three aspects of your situation that call for some pretty immediate diversification. First, the fact that the options only have 2 years until expiration. That tells me that they have blossomed very handsomely over the past 8 years and have little time left to ru...
by Wagnerjb
Sun Jun 17, 2018 8:15 pm
Forum: Investing - Help with Personal Investments
Topic: Kid's Online Access for Kid's Brokerage Accounts
Replies: 9
Views: 831

Re: Kid's Online Access for Kid's Brokerage Accounts

My MIL opened UTMA accounts. The kids didn't care and were not interested in seeing anything. When they cashed them in, they figured out how to log in and sell. Then they had dad help them figure out the taxes. So I personally don't think the kids need access because they just don't/won't care. Thi...
by Wagnerjb
Sun Jun 03, 2018 9:25 am
Forum: Investing - Help with Personal Investments
Topic: Thinking about RSUs and asset allocation
Replies: 12
Views: 983

Re: Thinking about RSUs and asset allocation

In other words, if there is a market crash over the next year and US stocks fall 50%, the US stock based portion of my portfolio will fall 50% and my RSUs that vest will also be worth half as much. Conversely, if the market doubles, the stocks in my existing portfolio will double and the value of t...
by Wagnerjb
Thu May 31, 2018 10:20 pm
Forum: Investing - Help with Personal Investments
Topic: How to buy commodities (soybeans)
Replies: 16
Views: 1890

Re: How to buy commodities (soybeans)

A common strategy is to sell the beans directly out of the field at market price, and immediately buy them back at market price using some kind of financial instrument. The spread is low because the physical delivery and the option/contract both clear at the day's closing price. This gives the farm...
by Wagnerjb
Mon May 28, 2018 10:56 am
Forum: Investing - Help with Personal Investments
Topic: Tracking Year to Year Carry Over Losses
Replies: 11
Views: 660

Re: Tracking Year to Year Carry Over Losses

What kind of professional tax preparer would prepare a tax return without having seen the previous year's return? Almost everyone I know including myself. Its great to have last year's return (just to compare and note "omissions" if nothing else) but I can state the number of new clients who bring ...
by Wagnerjb
Fri May 18, 2018 4:24 pm
Forum: Investing - Help with Personal Investments
Topic: Non-qualified Stock Options; when to sell?
Replies: 8
Views: 597

Re: Non-qualified Stock Options; when to sell?

As you know, financial theory says to wait until the last day, but that ignores the issue of personal diversification. I generally waited until the last year or two, but I set a target % of my retirement funds that I wanted to keep under. Mine was 20% as I recall, but if your retirement assets are $...
by Wagnerjb
Sat Apr 21, 2018 3:50 pm
Forum: Personal Finance (Not Investing)
Topic: Best Way to Decline an International Job Assignment
Replies: 23
Views: 1895

Re: Best Way to Decline an International Job Assignment

Any advice on how to tactfully decline an international job assignment? You haven't provided any information for us to help you. Why do you not want the transfer? The truth is usually the best approach. Apologies. It’s not really a transfer. It would require onsite work in a different country for m...
by Wagnerjb
Sat Apr 21, 2018 11:25 am
Forum: Personal Finance (Not Investing)
Topic: Strategy for Use of Restricted Stock Units
Replies: 18
Views: 1397

Re: Strategy for Use of Restricted Stock Units

I immediately sell the RSUs once they vest. You will have a tiny short term capital loss when you do so, as the sales proceeds are usually reduced by commissions and fees. Then use the funds for any purpose you see fit. Do not leave the stock in the account (by not selling) after it vests, as you ar...
by Wagnerjb
Fri Apr 20, 2018 4:55 pm
Forum: Personal Finance (Not Investing)
Topic: Exercising NQO Stock Options with Incorrect FMV
Replies: 9
Views: 764

Re: Exercising NQO Stock Options with Incorrect FMV

The most elegant answer would be for your friend to "gift" you highly appreciated shares in exchange for the stock. He might exchange to you shares worth say $25 or more. He saves by avoiding the capital gains tax. You take over his very low cost basis and sell the shares, effectively monetizing you...
by Wagnerjb
Fri Apr 20, 2018 9:56 am
Forum: Personal Finance (Not Investing)
Topic: Exercising NQO Stock Options with Incorrect FMV
Replies: 9
Views: 764

Re: Exercising NQO Stock Options with Incorrect FMV

Could you donate these shares to a charity? If so, would they value them at $35 per share? If the answer to both questions is yes, then consider exercising and donating the entire lot to a Donor Advised Fund. The DAF will sell the shares immediately and presumably value them at $35. So, in the year ...
by Wagnerjb
Thu Apr 19, 2018 9:59 am
Forum: Personal Finance (Not Investing)
Topic: Account for Adult Children Allowing Parent Some Control
Replies: 31
Views: 3756

Re: Account for Adult Children Allowing Parent Some Control

They need to understand the rules, how to open an account, and how to read the statements. Why would you deny them the learning experience? Most importantly, they will lose out on building the habit of saving. When the parent(s) die some year, do you think they will just start saving then?[/color] ...
by Wagnerjb
Wed Apr 18, 2018 10:01 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Cost Basis Transfer Issues
Replies: 1
Views: 390

Re: Vanguard Cost Basis Transfer Issues

I wouldn't do anything right now. The new broker won't submit any cost basis or date purchased to the IRS, just the proceeds when you sell. If you don't sell for a year from Feb 15th, you will be able to enter "various long term" into your tax software, enter the correct cost basis, and all will wor...
by Wagnerjb
Tue Apr 17, 2018 7:44 pm
Forum: Personal Finance (Not Investing)
Topic: Account for Adult Children Allowing Parent Some Control
Replies: 31
Views: 3756

Re: Account for Adult Children Allowing Parent Some Control

Tell your adult children that you are going to set up an account in their name and you will fund it.....but that it is for long-term purposes (as you determine) and they are not to worry about it. Open an account in their name at your brokerage company - the one you use for your other brokerage bus...
by Wagnerjb
Tue Apr 17, 2018 8:05 am
Forum: Personal Finance (Not Investing)
Topic: Account for Adult Children Allowing Parent Some Control
Replies: 31
Views: 3756

Re: Account for Adult Children Allowing Parent Some Control

Here is how to do it: Tell your adult children that you are going to set up an account in their name and you will fund it.....but that it is for long-term purposes (as you determine) and they are not to worry about it. Open an account in their name at your brokerage company - the one you use for you...
by Wagnerjb
Mon Apr 16, 2018 8:03 am
Forum: Investing - Help with Personal Investments
Topic: Gifting Shares to Son to fund ROTH
Replies: 6
Views: 639

Re: Gifting Shares to Son to fund ROTH

Your strategy is sensible and many others do the same. You need to learn about the Kiddie Tax (or tell us much more about your situation) so that you can avoid paying capital gains taxes on the appreciation on those gifted shares.

Best wishes.
by Wagnerjb
Mon Apr 16, 2018 7:59 am
Forum: Personal Consumer Issues
Topic: Costco gas
Replies: 67
Views: 6407

Re: Costco gas

Do you go out of your way to buy gas at Costco? Those who drive a "premium" tier car, do you buy premium gas? Thanks! I drive a premium car, and I buy premium gasoline. I try to fill up at Costco, although it isn't very close to home. As a retiree, I try to avoid filling up on weekends since the li...
by Wagnerjb
Sun Apr 15, 2018 9:10 pm
Forum: Personal Finance (Not Investing)
Topic: Can't afford health insurance -- options?
Replies: 23
Views: 2809

Re: Can't afford health insurance -- options?

Can he save money by living with you?
by Wagnerjb
Wed Apr 11, 2018 8:42 am
Forum: Investing - Help with Personal Investments
Topic: Question on the lost decade
Replies: 9
Views: 1041

Re: Queson on the lost decade

indexonlyplease wrote:
Wed Apr 11, 2018 6:17 am
From 2000-2009 I beleive they call this the lost decade. Someone that holds the 3 fund portfolio how do they protect themselves form 10 years of negative returns.
You invest for 4 or 5 decades, not just one. That's your best protection.
by Wagnerjb
Wed Apr 11, 2018 8:20 am
Forum: Investing - Help with Personal Investments
Topic: Donor Advised Fund -- checks voided
Replies: 3
Views: 564

Re: Donor Advised Fund -- checks voided

I also use Fidelity's Donor Advised Fund, and this happened to me twice. I regularly donate to 10 or 12 different charities each year through Fidelity DAF, and a voided check has never happened with my regular charities. It happened to a new charity a few years ago, and I considered that my sign tha...
by Wagnerjb
Mon Apr 09, 2018 8:17 am
Forum: Personal Finance (Not Investing)
Topic: Job search advice for a soon-to-be engineering grad...
Replies: 41
Views: 2175

Re: Job search advice for a soon-to-be engineering grad...

I see a warning flag if he didn't get any offers from the organization's he interned for. Is it truly "geographical preference" or a workplace issue? Good grades and book smarts doesn't always trranslate into top notch practicing engineers. I had the exact same thoughts. Many organizations will off...
by Wagnerjb
Mon Apr 09, 2018 7:55 am
Forum: Personal Finance (Not Investing)
Topic: Trustees of Special Need Trusts - Who Files your Beneficiary's 1040?
Replies: 9
Views: 641

Re: Trustees of Special Need Trusts - Who Files your Beneficiary's 1040?

We have a special needs trust in the family. Brother #1 became disabled later in life, and is functional and cooperative. Brother #2 is the trustee of the Special Needs Trust. I am brother #3 and I have (with brother #2's agreement) done the taxes for the trust itself for the four years the trust ha...
by Wagnerjb
Sun Apr 08, 2018 9:39 am
Forum: Investing - Theory, News & General
Topic: Help Me Make The Case Against Online Trading Academy
Replies: 33
Views: 2775

Re: Help Me Make The Case Against Online Trading Academy

It's funny how it is a BH thing to advocate index funds and to be skeptical of annuities and we see people offering opinions on those to others on the forum, but outside of that it is mind your own business. It is like we will offer opinions anonymously on the forum but avoid it face to face. No tr...
by Wagnerjb
Fri Apr 06, 2018 12:09 pm
Forum: Investing - Theory, News & General
Topic: Bond Portfolio for High Net Worth Individuals - Different Rules?
Replies: 67
Views: 8386

Re: Bond Portfolio for High Net Worth Individuals - Different Rules?

Because a HNWI has a lot of cushion to handle a lot of risk, I would think the percentage in stocks would be dominant no matter if young or old. Why do you say that? For a retiree with $5 million in assets and spending $200k annually, they have no more "cushion" than the guy with $500k in assets an...
by Wagnerjb
Wed Apr 04, 2018 9:53 am
Forum: Investing - Help with Personal Investments
Topic: Roth contribution $5500, Taxable compensation $5499 for 2016. How to fix?
Replies: 17
Views: 2474

Re: Roth contribution $5500, Taxable compensation $5499 for 2016. How to fix?

Andy, I don't think that is going to work. Yes, there is surely $1 worth of income like interest on a checking account or something. But it can't just be income. It has to be compensation . It seems to me your solution might trigger a computer choke up and spit out an inquiry because things don't m...
by Wagnerjb
Wed Apr 04, 2018 8:16 am
Forum: Personal Finance (Not Investing)
Topic: Thoughts on approach to student loans
Replies: 16
Views: 1142

Re: Thoughts on approach to student loans

totallystudly wrote:
Wed Apr 04, 2018 6:20 am

In theory over time the O investment should pay back the loan and I should still have the investment which should be worth more than it is today.
What if the value of O stock declined by 40% and they cut the dividend dramatically?
by Wagnerjb
Wed Apr 04, 2018 8:05 am
Forum: Investing - Help with Personal Investments
Topic: Roth contribution $5500, Taxable compensation $5499 for 2016. How to fix?
Replies: 17
Views: 2474

Re: Roth contribution $5500, Taxable compensation $5499 for 2016. How to fix?

I looked at line 12 on Form 1040x and don't see how it applies. When I made my recommendation to the OP, I did not notice that he was referring to 2016. On the 2017 form 1040, line 12 is the line where you would enter the additional $1 of earned income. To adjust 2016, you would simply use the form...
by Wagnerjb
Mon Apr 02, 2018 8:03 am
Forum: Investing - Help with Personal Investments
Topic: Roth contribution $5500, Taxable compensation $5499 for 2016. How to fix?
Replies: 17
Views: 2474

Re: Roth contribution $5500, Taxable compensation $5499 for 2016. How to fix?

Yes, W-2 box 1 is $5499 and the Roth contribution was $5500. Show $1 of income on line 12. You earned that $1 of income sometime during the year....don't you remember? :D You may not even have to file a schedule C if the amount is that small. That $1 avoids any headaches with the Roth contribution....
by Wagnerjb
Sun Apr 01, 2018 10:20 am
Forum: Investing - Help with Personal Investments
Topic: Tax Adjusted Investing
Replies: 11
Views: 1017

Re: Tax Adjusted Investing

I never did it and I am glad that I didn't because in retirement my income taxes are so close to zero that it really didn't matter. Have you tried to estimate your true taxes on your total income? It could be less than 5%. See this thread: https://www.bogleheads.org/forum/viewtopic.php?t=163748 In ...
by Wagnerjb
Sat Mar 31, 2018 2:46 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Adjusted Investing
Replies: 11
Views: 1017

Re: Tax Adjusted Investing

I never did it and I am glad that I didn't because in retirement my income taxes are so close to zero that it really didn't matter. Have you tried to estimate your true taxes on your total income? It could be less than 5%. See this thread: https://www.bogleheads.org/forum/viewtopic.php?t=163748 In ...
by Wagnerjb
Thu Mar 29, 2018 8:10 am
Forum: Investing - Help with Personal Investments
Topic: IRMAA and Roth Conversions
Replies: 21
Views: 1372

Re: IRMAA and Roth Conversions

Should I be allowing IRMAA to limit our Roth Conversions? Has anyone here faced similar decisions and how did you decide what to do? There are a lot of unknowns and moving parts. Thank you! By coincidence, I was discussing this with a fellow retiree yesterday at lunch. He is 65 (I am a few years aw...
by Wagnerjb
Mon Mar 26, 2018 8:16 am
Forum: Investing - Theory, News & General
Topic: A new twist--flex fees
Replies: 7
Views: 1124

Re: A new twist--flex fees

Now for the trick. These are not index funds. One of the funds, FFTVX, is a very growthy fund and is benchmarked against the S&P500. FFTVX holds some international and 27% mid cap. Another is benchmarked against the Russell 1000, but it holds no small and no value at all. It seems to me that Allian...
by Wagnerjb
Sun Mar 25, 2018 10:21 am
Forum: Personal Finance (Not Investing)
Topic: Reporting Interest on Schedule B
Replies: 14
Views: 962

Re: Reporting Interest on Schedule B

This seems like an obvious question, but do you report interest itemized per-account, or one total per institution? Obviously the amount will (probably) be different, so the issue is which number the IRS will see. So if you have twenty accounts at an institution, and they report to you the interest...
by Wagnerjb
Sat Mar 24, 2018 3:05 pm
Forum: Personal Finance (Not Investing)
Topic: How does it make sense to buy a condo/house in Texas?
Replies: 97
Views: 7519

Re: How does it make sense to buy a condo/house in Texas?

How does it make sense to buy a condo/house in Texas? With property taxes being as high as 2.6% in many large cities, for a 200k home, it would cost roughly $5,200 in property taxes a year ($433 per month); and for a 300k home, $7,800 in property taxes per year ($650 per month) . Given this, for so...
by Wagnerjb
Sat Mar 24, 2018 3:01 pm
Forum: Personal Finance (Not Investing)
Topic: University 1098-T shows zero amount?
Replies: 7
Views: 587

Re: University 1098-T shows zero amount?

Doesn't IRS computer automatically flag the return when 1098-T does NOT match the amount? I don't think so, but it doesn't matter anyway. You have to justify the expenses you paid in 2017 (if audited), and your records should be sufficient to prove when you paid the expenses. Even the University FA...
by Wagnerjb
Sat Mar 24, 2018 11:39 am
Forum: Personal Finance (Not Investing)
Topic: Foreign Tax Carryover Statement
Replies: 4
Views: 405

Re: Foreign Tax Carryover Statement

I worked overseas for 7 years, and my company paid Price Waterhouse to prepare my US (and foreign) income tax returns. I had a significant amount of foreign tax credits that were carried forward each year. Price Waterhouse prepared two forms 1116 - one regular, and one for AMT purposes. They also at...
by Wagnerjb
Sat Mar 24, 2018 11:28 am
Forum: Personal Finance (Not Investing)
Topic: University 1098-T shows zero amount?
Replies: 7
Views: 587

Re: University 1098-T shows zero amount?

Is it possible that the tuition amounts for spring 2017 were actually billed by the University in December 2016? If so, then they would have been reflected in the 2016 form 1098-T. You should be deducting the tuition expenses in the year in which you actually paid them. Thus, you may be reporting ex...
by Wagnerjb
Wed Mar 21, 2018 2:42 pm
Forum: Investing - Theory, News & General
Topic: [Federal Reserve hikes interest rate]
Replies: 34
Views: 4344

Re: Fed raises the fed rate, markets do not look efficient

The market didn’t react to the rate increase. They reacted to the guidance the Fed provided indicating the potential for more aggressive future increases. So indeed an efficient reaction - new information about faster future rate increases and bonds go down. Well said, and an excellent explanation ...
by Wagnerjb
Tue Mar 20, 2018 9:35 am
Forum: Investing - Theory, News & General
Topic: Bought myself a private island
Replies: 44
Views: 8687

Re: Bought myself a private island

I was going to respond to this thread yesterday, but the wifi on my private island went out temporarily :D
by Wagnerjb
Sat Mar 17, 2018 7:33 am
Forum: Personal Finance (Not Investing)
Topic: Incorrect Box 5 on 1098-T
Replies: 6
Views: 521

Re: Incorrect Box 5 on 1098-T

Is the school going to include the correction amount in the 2018 form 1098-T? Or are they going to issue a corrected 2017 form 1098-T? If they - for some reason - include the correction amount in with the 2018 form 1098-T, then I don't see how you can amend your 2017 tax return based on that document.
by Wagnerjb
Sun Mar 11, 2018 1:29 pm
Forum: Investing - Help with Personal Investments
Topic: 65 widow small tax-advantage account, cash savings retirement planning in TX
Replies: 32
Views: 2067

Re: 65 widow small tax-advantage account, cash savings retirement planning in TX

Your plan makes sense to me. It doesn't sound like your mother will need the distributions from the $220k in assets for living expenses, right? In one year she will have $2150 in retirement income plus $400 per month from work, and her total expenses are $1900 per month. Even after she stops working...
by Wagnerjb
Fri Mar 09, 2018 10:28 am
Forum: Investing - Help with Personal Investments
Topic: 8 mil loss on 1099...
Replies: 35
Views: 6044

Re: 8 mil loss on 1099...

I will add that I am not a tax professional, and I don't guarantee that what I've said is correct. I do know that your accountant is just wrong, and you should not pay tax on pretend gains. I am not sure that the accountant gave bad advice. Is the OP in the 10% or 15% tax bracket? If so, then he wo...
by Wagnerjb
Thu Mar 08, 2018 8:49 am
Forum: Personal Finance (Not Investing)
Topic: Any tax advantages to holding vested RSUs for a year?
Replies: 7
Views: 795

Re: Any tax advantages to holding vested RSUs for a year?

Loyalnine wrote:
Thu Mar 08, 2018 7:34 am
riverguy wrote:
Thu Mar 08, 2018 7:11 am
Any gains or losses between the vest price and your sales price become long term. That's it. Vest price is still taxed as regular income.
Got it - so if I don’t want to hold the stock, then best policy is just to sell it immediately and invest the proceedings, right?
Yes, exactly.
by Wagnerjb
Wed Mar 07, 2018 8:52 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement portfolio planning, asset allocation, debt in retirement
Replies: 4
Views: 859

Re: Retirement portfolio planning, asset allocation, debt in retirement

Questions: 1. With my taxable income dropping in retirement, I am contemplating whether to take to take advantage of the 0% capital gains rate by drawing down my taxable account to pay-off my mortgage early (over the first two to three years of retirement). One motivating factor is that with the in...
by Wagnerjb
Wed Mar 07, 2018 10:03 am
Forum: Investing - Help with Personal Investments
Topic: I want to retire
Replies: 28
Views: 5033

Re: I want to retire

Once you sell the house, it looks like you will have roughly $1.8 million in assets. If you were to wait and retire at age 65, those assets would support around $72,000 of income (pretax) for the duration of your retirement. For you to have $85k (after tax?) to spend, I am thinking you need to gener...
by Wagnerjb
Mon Mar 05, 2018 9:00 am
Forum: Personal Finance (Not Investing)
Topic: What is the tax situation look like for an inherited trust?
Replies: 11
Views: 828

Re: What is the tax situation look like for an inherited trust?

From my research, any tax on money (interest, dividends, CG's) that is created by the trust, and recycled back into the trust, is paid for by the trust and not myself. Any income that the trust distributes to me is what I am interested in. From my understanding, ANY money I recieve would be taxed a...
by Wagnerjb
Thu Mar 01, 2018 9:01 am
Forum: Personal Finance (Not Investing)
Topic: Will my lax approach to record keeping fly in an audit?
Replies: 40
Views: 4096

Re: Will my lax approach to record keeping fly in an audit?

No! The IRS quite explicitly states that money saved by a dependent does not count as support provided by the dependent. If the child's income goes into savings in the child's name, that does not count as support provided by the child. However, if the child spends their income (or their savings, fo...
by Wagnerjb
Wed Feb 28, 2018 6:52 pm
Forum: Personal Finance (Not Investing)
Topic: Tax question: Foreign Tax Credit
Replies: 33
Views: 3239

Re: Tax question: Foreign Tax Credit

A line for the carryforward would be a help and I make that calculation in my tax spreadsheet. Maybe they considered it unnecessary with the detailed computation requested for Form 1116 Line 10. It looks like Form 1116 can get quite complicated with five different categories of income and a separat...