Search found 201 matches

by libralibra
Mon Sep 24, 2018 7:53 pm
Forum: Personal Finance (Not Investing)
Topic: Is HELOC interest deductible in 2018?
Replies: 9
Views: 844

Re: Is HELOC interest deductible in 2018?

The controlling question on a HELOC is the use of the funds. They must have been used for the acquisition of your primary residence. David Jay, that is NOT correct: The Tax Cuts and Jobs Act of 2017 suspends from 2018 until 2026 the deduction for interest paid on home equity loans and lines of cred...
by libralibra
Sun Sep 23, 2018 1:07 pm
Forum: Investing - Theory, News & General
Topic: Allocating 1/3 of Investable Assets to Roth Accounts
Replies: 35
Views: 1981

Re: Grabiner, what does this mean?

The effect of this change is sufficiently small (for example, the doubled estate tax exclusion amount is $11,180,000 rather than $11.2 million in 2018) that it will be far outweighed by whatever else Congress may do from time to time. A billion here, a billion there, pretty soon, you're talking rea...
by libralibra
Sun Sep 23, 2018 12:26 pm
Forum: Investing - Theory, News & General
Topic: Allocating 1/3 of Investable Assets to Roth Accounts
Replies: 35
Views: 1981

Re: Grabiner, what does this mean?

The explanation I read was that the new CPI calculation is more accurate - the old calculation was over-estimating inflation and thus giving a creeping tax cut each year by expanding the brackets too fast. Eventually, there'd have to be a reset of the brackets, similar to a leap year, because the go...
by libralibra
Sun Sep 23, 2018 12:07 pm
Forum: Personal Finance (Not Investing)
Topic: 2018 UTMA tax gain harvesting
Replies: 12
Views: 1111

Re: 2018 UTMA tax gain harvesting

The "What's New" section at the top of the instructions seems to be pretty clear https://www.irs.gov/pub/irs-dft/i8615--dft.pdf

Also, all the pro-rata stuff seems to be gone.
by libralibra
Fri Sep 21, 2018 1:50 pm
Forum: Investing - Theory, News & General
Topic: Simple-minded sayings?
Replies: 37
Views: 2960

Re: Simple-minded sayings?

Non-actionable (trolling) topics are non-actionable. heh, one actionable thing would be if people could come up with more cogent arguments rather than thinking a simple witticism solves someone's problem. The aphorisms people have come up with are basically all true (that's why they're called aphor...
by libralibra
Thu Sep 20, 2018 11:45 am
Forum: Investing - Theory, News & General
Topic: Simple-minded sayings?
Replies: 37
Views: 2960

Simple-minded sayings?

I've noticed boglehead threads are full of aphorisms Almost every time someone mentions buying a stock, someone will reply smugly "Why do you think you know more than the seller?" but in another thread someone will remind you to "Be greedy when others are fearful, and fearful when others are greedy"...
by libralibra
Wed Sep 19, 2018 8:24 pm
Forum: Personal Finance (Not Investing)
Topic: General 2018 Tax Question
Replies: 33
Views: 3552

Re: General 2018 Tax Question

Except that now instead of a single two-sided 1040 I have a single, two-sided new 1040 and a schedule 1 and a schedule 3 and who knows how many more. If I were to design the forms, I would just do something like Huffman Encoding. I.e. look at all returns and see how often each line is used. Then pu...
by libralibra
Wed Sep 19, 2018 7:30 pm
Forum: Personal Finance (Not Investing)
Topic: General 2018 Tax Question
Replies: 33
Views: 3552

Re: General 2018 Tax Question

Most of my 1040 is blank and I don't even know what those lines are used for. If they are uncommon, then pushing them to subsidiary forms seems fine for brevity of the common case.

Of course, more than 90% e-file now anyway, so it really doesn't matter which form the info prints out on, right?
by libralibra
Sat Sep 15, 2018 3:13 am
Forum: Personal Finance (Not Investing)
Topic: Any issue with overpaying taxes?
Replies: 23
Views: 1626

Re: Any issue with overpaying taxes?

I'm thinking for my wife's shares, if she does decide to sell some, come tax time I might just put the cost basis as $0. I know I'll pay more tax, but it won't be that much. Any potential problems/issues this might cause other than a little more $ out of my pocket? You should at least try to find o...
by libralibra
Tue Sep 04, 2018 3:39 pm
Forum: Personal Finance (Not Investing)
Topic: Charitable Tax Deductions
Replies: 46
Views: 3460

Re: Charitable Tax Deductions

Last year it cost me 72 cents for every dollar contributed. This year, under the new tax code, it will cost me $1. For most taxpayers, the standard deduction increase is a big win because they didn't itemize anyway. For some that did itemize, the new limit is higher so they still win. However, it m...
by libralibra
Tue Sep 04, 2018 12:34 pm
Forum: Personal Finance (Not Investing)
Topic: Quick tax question
Replies: 18
Views: 1918

Re: Quick tax question

Did you not notice that I said; "Is that very few of them have any tax liability to begin with." ... Your math is way askew. The tax drag of a high equity asset allocation of index funds is minimal. Taxable investments have always been and are far preferable to making non-deductable contributions t...
by libralibra
Wed Aug 29, 2018 1:26 am
Forum: Investing - Help with Personal Investments
Topic: Does any broker allow unprotected put options in a UTMA account?
Replies: 11
Views: 1071

Re: Does any broker allow unprotected put options in a UTMA account?

I'm guessing I'll just have to submit my puts with the underlying equity, which while not as favorable is still a solid reduction. I don't get why holding protected puts is any different from just being long on the puts (without holding the stock). I.e. you can just sell the option instead of exerc...
by libralibra
Tue Aug 28, 2018 7:46 pm
Forum: Investing - Help with Personal Investments
Topic: Selling individual stock, reinvesting questions
Replies: 9
Views: 695

Re: Selling individual stock, reinvesting questions

I entered your info into https://www.portfoliovisualizer.com/backtest-portfolio using Month-Month from March 1990 to July 2018 Initial Amount: $4475 (179 shares @ 25) Display Income and Reinvest Div: yes Portfolio: NFG 100% The "Summary" tab says the final balance is $56,105 (=1,045 shares at the Ju...
by libralibra
Sun Aug 26, 2018 11:33 pm
Forum: Personal Finance (Not Investing)
Topic: SALT: IRS issues proposed regs for State Tax Credit for Donation
Replies: 62
Views: 6076

Re: SALT: IRS issues proposed regs for State Tax Credit for Donation

Alabama has had a program in place for about 5 years, with a 100% state tax credit for up to one-half of state income taxes for charitable contributions to a "scholarship granting organization (SGO)". There are several SGOs set up in Alabama which provide scholarships for worthy students to private...
by libralibra
Sun Aug 26, 2018 3:14 pm
Forum: Personal Finance (Not Investing)
Topic: Trying to understand employee stock options
Replies: 3
Views: 514

Re: Trying to understand employee stock options

The shares were sold just a few days ago, is there a possibility for me to buy 10,000 shares and "zero out" the sale? So like a wash-sale but the other way around? A disqualifying sale of ISO is treated the same as NSO, so the difference is moot now. You will pay regular income tax on the 30k gain ...
by libralibra
Fri Aug 24, 2018 6:08 pm
Forum: Personal Finance (Not Investing)
Topic: SALT: IRS issues proposed regs for State Tax Credit for Donation
Replies: 62
Views: 6076

Re: SALT: IRS issues proposed regs for State Tax Credit for Donation

It's really strange to see the roles reversed where the left is arguing for a tax loophole that mainly benefits higher income people, and the right is saying we need these taxes to help cover the cost of the tax cut to the middle class. In a way I think they are trying to double-dip because people w...
by libralibra
Mon Aug 20, 2018 1:37 pm
Forum: Personal Finance (Not Investing)
Topic: AMT absorbs Premium Tax Credit (PTC) repayment
Replies: 3
Views: 579

Re: AMT absorbs Premium Tax Credit (PTC) repayment

A very high LTCG seems to trigger AMT on a modest amount of regular income. Example: Single filer AGI of 48k, which is right at the cutoff of the ACA subsidy. In Dec gets a windfall of 750k LTCG (e.g. sells home for 1m gain, or bought AAPL 15 years ago for 8k and now it's 800k :happy ). This phases ...
by libralibra
Sat Aug 18, 2018 2:19 pm
Forum: Personal Finance (Not Investing)
Topic: AMT absorbs Premium Tax Credit (PTC) repayment
Replies: 3
Views: 579

AMT absorbs Premium Tax Credit (PTC) repayment

I just came across something surprising by playing with numbers in TurboTax. If you pay AMT and received too much PTC during the year which you have to pay back, the AMT totally absorbs it. I.e. the AMT drops by the exact amount of the PTC repayment. You can see why on line 34 of form 6251: Add Form...
by libralibra
Sat Aug 18, 2018 12:33 pm
Forum: Personal Finance (Not Investing)
Topic: funds from inheritance [how is it taxed?]
Replies: 9
Views: 920

Re: funds from inheritance [how is it taxed?]

Sandi_k wrote:
Sat Aug 18, 2018 11:58 am
This is why it's better to inherit real estate and stocks, due to the tax code's "step up basis" rules.
Except if it's in a tIRA. The basis is not adjusted - but you don't actually owe taxes when the stock is sold, only when the funds are withdrawn from the tIRA.
by libralibra
Sat Aug 18, 2018 12:23 pm
Forum: Personal Finance (Not Investing)
Topic: 529 for Long Term Savings?
Replies: 9
Views: 903

Re: 529 for Long Term Savings?

If funds deposited at birth are withdrawn the same year the effective penalty tax on overall withdrawals will be 10%. However, if funds left over after college are withdrawn, for example, to help fund a car or a first mortgage at age 26, the effective tax penalty on withdrawals will be less than 2%...
by libralibra
Thu Aug 16, 2018 4:11 pm
Forum: Personal Finance (Not Investing)
Topic: Turbo Tax -- Forms 8814 and 8962 (Household income calculations for PTC)
Replies: 7
Views: 583

Re: Turbo Tax -- Forms 8814 and 8962 (Household income calculations for PTC)

I'm surprised TT didn't at least prompt for 2b from all dependent income, much like it has to do when you file 8615 with multiple kids.

btw, don't you lose $75 by filing 8814 instead of 8615 (assuming qualified divs)?
by libralibra
Sat Aug 11, 2018 1:21 pm
Forum: Investing - Theory, News & General
Topic: Turkey/Turkish Stocks down 32% - approaching 2008 levels
Replies: 102
Views: 10937

Re: Turkey/Turkish Stocks down 32% - approaching 2008 levels

Wait 6 months till they are out of the news TUR was at 26.84 on july 24th. now at 21.49 Fun Fact: Nasdaq stocks add a "D" to the ticker for 20 days following a reverse split. The one I remember was "FIRE" that did a reverse split during the dotcom meltdown and massive layoffs. This one would be eve...
by libralibra
Tue Aug 07, 2018 1:36 pm
Forum: Personal Finance (Not Investing)
Topic: step-up basis after a spouse's passing
Replies: 26
Views: 2532

Re: step-up basis after a spouse's passing

I understand that. The stated requirement was that the surviving spouse is not financially savvy, and I am trying to get this done automatically or almost automatically -- by just leaving a simple instructions for the surviving spouse. if it requires talking to the broker just once that would be go...
by libralibra
Sun Aug 05, 2018 12:48 pm
Forum: Personal Finance (Not Investing)
Topic: step-up basis after a spouse's passing
Replies: 26
Views: 2532

Re: step-up basis after a spouse's passing

Spouse died in 2009. Upon notification, and receipt of documentation, Schwab journaled brokerage assets to a new brokerage account. ... Edited to add: In this case, for non-community property state AND a joint account, step-up (and step-down) was on the 50% of the deceased joint owner's basis, not ...
by libralibra
Sun Aug 05, 2018 12:09 am
Forum: Personal Finance (Not Investing)
Topic: Do We need health insurance??
Replies: 137
Views: 9547

Re: Do We need health insurance??

My guess is that the political leanings of OP is informing OP's aversion towards anything ACA. This is one pre-existing condition even ACA cannot handle. It sure as heck cannot be cured by any nuggets of wisdom from any message board. +1. Will stay away from prohibited topics and just observe that ...
by libralibra
Sat Aug 04, 2018 4:56 pm
Forum: Investing - Help with Personal Investments
Topic: UTMA - Liquidating stock investment
Replies: 3
Views: 385

Re: UTMA - Liquidating stock investment

This article may be helpful. Yes, kiddie tax rates are higher under the new tax law. I would look into selling as much of the company stock each year as you can tax free. It’s up to you if you want to pay higher taxes to dispose of it sooner, depending on the company prospects and riskiness. https:...
by libralibra
Sun Jul 29, 2018 2:47 pm
Forum: Personal Finance (Not Investing)
Topic: Boy's first job
Replies: 38
Views: 3759

Re: Boy's first job

Assuming you meant to say Roth IRA in the 2nd paragraph, he can do both if his work plan is a Roth 401k since that doesn't lower his earned income. For the match, you might want to check if there is a vesting period. Sometimes you have to work a minimum number of years before the money is yours to k...
by libralibra
Sat Jul 28, 2018 1:53 am
Forum: Investing - Help with Personal Investments
Topic: ADR Fee Dividends
Replies: 4
Views: 465

Re: ADR Fee Dividends

Send a message to customer support and ask them to double check the fees. It does seem to be 10x too high.

Also, I hope this is not an IRA or else you'd be losing the foreign tax withheld (30%). If a taxable account, then you can claim a foreign tax credit (not on the ADR fees though).
by libralibra
Fri Jul 27, 2018 1:32 pm
Forum: Personal Consumer Issues
Topic: MoviePass-Too good to be true, but it's legit.
Replies: 362
Views: 47050

Re: MoviePass-Too good to be true, but it's legit.

The stock is down from 9700 last year to 2 (HMNY).
by libralibra
Fri Jul 27, 2018 2:55 am
Forum: Investing - Help with Personal Investments
Topic: Biggest financial decision of my life: selling a big wad of options
Replies: 46
Views: 5314

Re: Biggest financial decision of my life: selling a big wad of options

Well, he is getting to bet with 50% house money. It's like those coupon books you get in casinos where you bet $2 and the coupon matches $2.
by libralibra
Tue Jul 24, 2018 6:35 pm
Forum: Investing - Help with Personal Investments
Topic: Company Mishandled My RSUs
Replies: 5
Views: 1064

Re: Company Mishandled My RSUs

Here's one way to frame it to yourself that might reduce the regret. What's the price difference between the day you asked them about it and the day you were allowed to sell? If you weren't thinking of selling before that, then this is closer to your actual loss. Also, out of the 250 shares were som...
by libralibra
Sat Jul 21, 2018 12:27 pm
Forum: Investing - Help with Personal Investments
Topic: Oops, for 2018 I think we should have funded tIRA not Roth. Please review relates to capital gains.
Replies: 6
Views: 512

Re: Oops, for 2018 I think we should have funded tIRA not Roth. Please review relates to capital gains.

Your MAGI is too high to fully deduct a TIRA so your idea won't work.

btw, if it had worked, you could sell more than 11k - you would want 11k gains, so you could sell ~25k given your basis - and the savings would have been 11k*.15
by libralibra
Sat Jul 14, 2018 10:39 pm
Forum: Investing - Help with Personal Investments
Topic: Tax implication of exercising company stock options
Replies: 10
Views: 1282

Re: Tax implication of exercising company stock options

Wow, this is frightening! What was your strike price per share and what was the series D price? Multiply the difference by the number of shares exercised, and you could owe tax on that amount. If NSO, taxes are due. If ISO, then AMT may be due. e.g. if your strike price is 10c and the current price ...
by libralibra
Sun Jul 08, 2018 7:21 pm
Forum: Investing - Help with Personal Investments
Topic: BofA HSA has brought back Vanguard Funds
Replies: 7
Views: 1023

Re: BofA HSA has brought back Vanguard Funds

Will this account show up under your regular login, or is this a separate website with a new username?

Also, is the fee waiver a hidden benefit? I don't see it mentioned on their Preferred Rewards page.
by libralibra
Fri Jun 29, 2018 10:16 pm
Forum: Investing - Help with Personal Investments
Topic: Taking $1M+ Long Term Capital Gains
Replies: 73
Views: 8151

Re: Taking $1M+ Long Term Capital Gains

This 2-part article walks thru the different strategies of using puts, put spreads, collars, put spread collars, shorting, exchange funds, stock protection funds, and tax-optimized equity portfolios to manage single stock risk. http://www.nysscpa.org/news/publications/the-tax-stringer/stringer-artic...
by libralibra
Fri Jun 29, 2018 6:18 pm
Forum: Personal Consumer Issues
Topic: MoviePass-Too good to be true, but it's legit.
Replies: 362
Views: 47050

Re: MoviePass-Too good to be true, but it's legit.

Some Cinemark theaters are $5 all shows all day on Tuesdays (plus optional XD or 3D surcharge)
https://www.cinemark.com/discount-day
by libralibra
Sat Jun 23, 2018 3:17 pm
Forum: Investing - Help with Personal Investments
Topic: “Buying the Dividend”
Replies: 17
Views: 2073

Re: “Buying the Dividend”

It is not the worst thing to buy a dividend. You just pay the tax now rather than later. If you bought the dividend, you will have a higher basis and pay less when you sell. That's another myth. My cost basis for shares purchased does not change because I bought the dividend. Nor does it change bec...
by libralibra
Wed Jun 20, 2018 6:15 pm
Forum: Investing - Help with Personal Investments
Topic: Moving taxable investments...tax-free?
Replies: 18
Views: 2365

Re: Moving taxable investments...tax-free?

Not clear on your numbers. Is 83k all sources of income for the year, but not counting retirement deductions? If so, keep in mind that IRAs don't help lower your MAGI (which is used to calculate deductibility), so 83k-18.5k means you have 36k avail for 0% LTCG. With your basis, you have 72k LTCG so ...
by libralibra
Tue Jun 19, 2018 6:43 pm
Forum: Investing - Help with Personal Investments
Topic: Moving taxable investments...tax-free?
Replies: 18
Views: 2365

Re: Moving taxable investments...tax-free?

I have ~$90k in taxable mutual funds that I'd like to move to Vanguard in order to simplify my financial life. The next several years seem like a good time to do this, since my wife is newly unemployed (staying home with baby #1 and pregnant with #2) and my income is unlikely to decrease until reti...
by libralibra
Mon Jun 18, 2018 3:17 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Municipal Money Market VMSXX 1.39%
Replies: 239
Views: 30648

Re: Vanguard Municipal Money Market VMSXX 1.39%

Say the yield was a constant 1%, then for one day was at 2%, and then went back to 1%. The SEC yield on that day would jump from 1% to 1.14% and stay there for 6 more days, then drop back to 1%. So even if you moved your funds right away, you would have actually missed getting 2% or even 1.14% and s...
by libralibra
Sun Jun 10, 2018 2:29 pm
Forum: Investing - Help with Personal Investments
Topic: tax loss worthwhile?
Replies: 15
Views: 1400

Re: tax loss worthwhile?

what good is 3.1% yield if value keeps going down and may for some time? of course that is a timing issue but.................. If you've decided to sell, then definitely avoid any LT gains this year. Then harvest some ST gains (sell and buy back immediately) and leave 3k loss to offset other income.
by libralibra
Thu Jun 07, 2018 3:09 pm
Forum: Investing - Theory, News & General
Topic: TLH (tax-loss harvesting) & quarterly dividends
Replies: 61
Views: 5627

Re: TLH (tax-loss harvesting) & quarterly dividends

If dividends and capital losses were independent, I imagine I would want to pay (low or no) dividend tax in exchange for a (ordinary income tax rate) loss increase to use later. Randomizer Example modified to wait for dividends on "source" fund: Imagine VFIAX is trading at $10 per share and pays a ...
by libralibra
Tue Jun 05, 2018 1:55 am
Forum: Investing - Help with Personal Investments
Topic: Why do I have a wash sale disallowance?
Replies: 12
Views: 1594

Re: Why do I have a wash sale disallowance?

The brokerage was supposed to apply the wash sale chronologically, i.e. the wash sale was supposed to be triggered on the 9/20 lot, not the 9/22 lot. Also, the 11/16 lot should have had it's holding period moved back to the date of the wash sale lot purchase. This is to prevent someone from converti...
by libralibra
Sun Jun 03, 2018 3:41 pm
Forum: Personal Finance (Not Investing)
Topic: Escrow income, Lehman Brothers - where to include, which fed'l tax form(s)? Plus CP11 help, plz.
Replies: 3
Views: 427

Re: Escrow income, Lehman Brothers - where to include, which fed'l tax form(s)? Plus CP11 help, plz.

You probably should not be TLHing your long term losses if you are also booking LTCG while in the 0% bracket. If you had only STCG or regular income, then TLH LTCG does help, though. It's impossible to say what the IRS is looking at with the info you gave. You could have made a math mistake somewher...
by libralibra
Sat Jun 02, 2018 7:54 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Municipal Money Market VMSXX 1.39%
Replies: 239
Views: 30648

Re: Vangaurd Municipal Money Market VMSXX 1.39%

Maybe the income in some funds is just more bunched, e.g. at the end of the month or quarter. Then the 7 day rolling average of the fund's income yield would rise and fall. If that was true, I wonder how the distribution is calculated. I.e. do you get paid based on the income that was received on th...
by libralibra
Thu May 31, 2018 2:47 pm
Forum: Investing - Help with Personal Investments
Topic: Purepoint Financial offers 1.9%
Replies: 8
Views: 838

Re: Purepoint Financial offers 1.9%

I am happy with this FDIC insured online bank. No fees as yet and quick service What's the point when Vanguard MM are paying more than that? heh, why does every one of these threads have to start out the same? Waiting for someone to post about TBills next. :oops: However, it would be kind of nice, ...
by libralibra
Sun May 27, 2018 12:00 am
Forum: Investing - Help with Personal Investments
Topic: CIT MM Now 1.85% [Money Market]
Replies: 27
Views: 2813

Re: CIT MM Now 1.85%

Liquidity? You can sell a T-bill before its term too. When people talk about liquidity of an investment, they mean without the risk of taking a haircut or even losing accrued interest. (You probably knew that and were just being facetious though.) E.g. my house is not very liquid, but I could sell ...
by libralibra
Sat May 26, 2018 11:35 pm
Forum: Investing - Help with Personal Investments
Topic: CIT MM Now 1.85% [Money Market]
Replies: 27
Views: 2813

Re: CIT MM Now 1.85%

billfromct wrote:
Sat May 26, 2018 5:20 pm
Since the Vanguard MM Fund now pays 1.88% interest, why would you use CIT Bank?
FDIC coverage?
manedark wrote:
Sat May 26, 2018 10:33 pm
Why not consider 6 month T-bill giving ~2‰
Liquidity?
by libralibra
Sat May 26, 2018 10:43 pm
Forum: Investing - Help with Personal Investments
Topic: Tax-loss selling before (or after?) receiving dividend
Replies: 6
Views: 1068

Re: Tax-loss selling before (or after?) receiving dividend

No, it doesn't make any sense. Sell before getting the dividend to avoid adding income to your tax return in the first place. You could create two trial or pretend tax returns right now doing it both ways and see that one way is definitely better. By selling after, the loss would be bigger. If able...
by libralibra
Sat May 26, 2018 9:07 pm
Forum: Personal Finance (Not Investing)
Topic: Does IRS penalize for overpayment of taxes?
Replies: 19
Views: 2167

Re: Does IRS penalize for overpayment of taxes?

If you purposely overpaid your state taxes by a huge amount in order to take a big itemized deduction (e.g. to income shift), the IRS could deny the deduction and then penalize you for underpaying your federal taxes. Pub 17 chapter 22 has an example like that.