Search found 170 matches

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: 1085

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: 978

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: 7747

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: 301
Views: 38022

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: 1963

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: 17
Views: 2118

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: 17
Views: 2118

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: 208
Views: 22980

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: 1280

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: 5508

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: 1508

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: 387

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: 208
Views: 22980

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: 770

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: 2687

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: 2687

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: 1037

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: 2060

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.
by libralibra
Thu May 24, 2018 7:58 pm
Forum: Personal Finance (Not Investing)
Topic: How do I tell if Roth conversions are worth the trouble?
Replies: 76
Views: 6214

Re: How do I tell if Roth conversions are worth the trouble?

We have been covering what I'll call our "early retirement" expenses through a combination of dividends earned on the taxable account (about $52k annually), rent received from a separate apartment in our home (about $30k), a substantially equal periodic payment (SEPP) from our traditional IRA (abou...
by libralibra
Thu May 24, 2018 3:30 pm
Forum: Personal Finance (Not Investing)
Topic: I need some math help-calculating interest savings
Replies: 31
Views: 1646

Re: I need some math help-calculating interest savings

I understood the op's question was how much did he save, assuming he paid the first loan off over the 30 year term, compared to recasting making a $40k principal payment and $1200 monthly payments. Using the above assumptions, this is how I came up with the $127,334 savings. The original loan has 3...
by libralibra
Wed May 23, 2018 2:10 am
Forum: Investing - Theory, News & General
Topic: What are downsides of ESPP @ 15% discount ?
Replies: 41
Views: 3041

Re: What are downsides of ESPP @ 15% discount ?

If you are in a high tax bracket (say, 32% or higher), it may be worth looking at extending the rotation period to 1 year in order to sell at long term capital gains (LTCG) rate. No, not really. The 15% discount (or whatever discount you get) at vesting is always taxed as ordinary income. Only the ...
by libralibra
Tue May 22, 2018 6:41 pm
Forum: Personal Finance (Not Investing)
Topic: private company option exercise - tax question
Replies: 11
Views: 648

Re: private company option exercise - tax question

Yes, that's the whole point of options, you are getting to buy a 40c stock for 10c. Imagine if you were in the 0% tax bracket when you exercised. You would pay no tax, but still own a (and have basis of) 40c stock. I.e. the amount of tax you pay has no bearing on the basis. When it crashes to 0, you...
by libralibra
Sun May 20, 2018 1:35 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Municipal Money Market VMSXX 1.39%
Replies: 208
Views: 22980

Re: Vangaurd Municipal Money Market VMSXX 1.39%

Is VMSXX FDIC insured? If not, should I worry about that? Money market funds are not FDIC-insured. The likelihood of a Vanguard money market fund "breaking the buck" would have to be considered virtually zero and if it were to happen, you'd have a lot more things to worry about. I've read this here...
by libralibra
Tue May 15, 2018 1:30 pm
Forum: Personal Finance (Not Investing)
Topic: Unequal beneficiaries for POD accounts to maximize FDIC at Ally.
Replies: 24
Views: 1332

Re: Unequal beneficiaries for POD accounts to maximize FDIC at Ally.

I don’t agree with your interpretation of the “bank’s deposit account records”. Realizing I won’t change your mind, would you be willing to risk your own funds on your interpretation of this provision? I wouldn’t. Gill I'm wondering if the confusion between what Gill and everyone else is saying cou...
by libralibra
Sun May 13, 2018 8:44 pm
Forum: Investing - Theory, News & General
Topic: Doubling Your Money
Replies: 32
Views: 6897

Re: Doubling Your Money

So I'm trying to figure out the right mix of continued retirement contributions vs. accelerating the payoff of the mortgage. Currently we are maxing out all our contributions (~$88,500 per year), but just paying the mortgage down at the normal amortization schedule. We could shift some (or all) fro...
by libralibra
Sun May 13, 2018 4:08 pm
Forum: Personal Finance (Not Investing)
Topic: NIIT - Net Investment Income Tax Calculation
Replies: 4
Views: 578

Re: NIIT - Net Investment Income Tax Calculation

You will pay 3.8% NIIT on the 30k above the 250k threshold.

For each extra dollar of LTCG/QDiv, your rate is now 18.8%.

For regular income your marginal rate is now your tax bracket + 3.8%, since each extra dollar will push another dollar of investment income into NIIT.
by libralibra
Thu May 10, 2018 6:11 pm
Forum: Investing - Help with Personal Investments
Topic: ESPP taxing rules, to hold or not to hold
Replies: 28
Views: 2125

Re: ESPP taxing rules, to hold or not to hold

For example, say the price is $30 on the offering date, $40 on the purchase date (so you pay $36), and $50 when you sell. Then there are 3 possibilities: - sell before 1 year (disqualifying), then you have wage income of $4 and STCG of $10 - sell between 12 and 21 months (disqualifying), then you h...
by libralibra
Sun Apr 29, 2018 10:43 pm
Forum: Investing - Help with Personal Investments
Topic: ESPP taxing rules, to hold or not to hold
Replies: 28
Views: 2125

Re: ESPP taxing rules, to hold or not to hold

I kept my ESPP stocks so far (two quarters). I just recently learned ESPP shares have to be hold for more than a year after the purchase date AND more than two years after the beginning of the offering period then any profit above the gain from the discount will be taxed at capital gains tax rates....
by libralibra
Thu Apr 19, 2018 7:14 pm
Forum: Personal Finance (Not Investing)
Topic: Exercising NQO Stock Options with Incorrect FMV
Replies: 9
Views: 741

Re: Exercising NQO Stock Options with Incorrect FMV

You are not really losing money, but just spending 3.5k to buy some tax credits, i.e. 27k of capital losses. I guess I trade individual stocks, so that has some value for me. In your case, it's like getting 1.5k back for the next 9 years. Maybe we can change the math a bit to make it sound better. A...
by libralibra
Thu Apr 19, 2018 3:27 pm
Forum: Personal Finance (Not Investing)
Topic: Exercising NQO Stock Options with Incorrect FMV
Replies: 9
Views: 741

Re: Exercising NQO Stock Options with Incorrect FMV

At what price does the company issue options to new emps? If they use $35, then it doesn't matter what you are able to get on the secondary market. The discount for private equity can vary widely, I believe, because of the liquidity or various restrictions placed on the shares. The secondary market ...
by libralibra
Mon Apr 16, 2018 1:27 pm
Forum: Personal Finance (Not Investing)
Topic: Microfocus tax implications
Replies: 22
Views: 1303

Re: Microfocus tax implications

Starting out with 400 shares of HPE, cost basis $3,360.98, purchase date 01/01/2000. Double check your basis - HP hit an all time high around Jan 2000, so if you bought in the open market, it was about ~110 a share. For 200 shares (which split to 400 later) that would be 22k, times ~7% equals a bas...
by libralibra
Mon Apr 16, 2018 1:12 pm
Forum: Personal Finance (Not Investing)
Topic: $4,400 in AMT? sanity check, please?
Replies: 11
Views: 1606

Re: $4,400 in AMT? sanity check, please?

The good news is that next year you won't have AMT and your regular tax drops to 48.9k (according to http://taxplancalculator.com with your numbers) - about 10k less overall!
by libralibra
Mon Apr 16, 2018 12:48 pm
Forum: Personal Finance (Not Investing)
Topic: Gifts to grandkids of different ages
Replies: 13
Views: 1427

Re: Gifts to grandkids of different ages

Are there other vehicles that may make sense to use, other than joint accounts and trusts, that will allow us some level of oversight/control over our kids' use of these funds? How about a UTMA account? They are as simple to open at a brokerage as any regular account. You can dump the 30k/yr there ...
by libralibra
Mon Apr 16, 2018 12:42 pm
Forum: Personal Finance (Not Investing)
Topic: Bank of America/Merrill Edge - Preferred Rewards
Replies: 465
Views: 95318

Re: Bank of America/Merrill Edge - Preferred Rewards

I'm contemplating storing written passwords :shock: But haven't though through all the ramifications. The trouble is the hassle of gathering all the information and getting it to the box and having to keep it up to date. To me, it's a chore and even more so to maintain it. You could use one of the ...
by libralibra
Mon Apr 16, 2018 12:32 pm
Forum: Personal Finance (Not Investing)
Topic: Replacement for Google Finance price quote function
Replies: 78
Views: 11795

Re: Replacement for Google Finance price quote function

Thanks for this! However, I'm still struggling with the YTD formula... I'd like it to display the 'YTD return' as a percentage. The formula above seems to give me the price of the stock on 1/2/18 Thanks again for the help. Much appreciated! That's the denominator for your original equation, = GOOGL...
by libralibra
Wed Apr 04, 2018 2:40 pm
Forum: Personal Finance (Not Investing)
Topic: NY passes law to get around SALT limit
Replies: 47
Views: 6090

Re: NY passes law to get around SALT limit

They say that "timing is everything" although I'm still not clear how some tax relief could be thwarted by a well-crafted program. As I posted above, CA has been offering this program, which is different from the NY program but with a similar end result, since 2014. They have awarded up to nearly $...
by libralibra
Wed Apr 04, 2018 1:10 pm
Forum: Personal Finance (Not Investing)
Topic: NY passes law to get around SALT limit
Replies: 47
Views: 6090

Re: NY passes law to get around SALT limit

Wish this option had been available for all those years I was paying AMT.
by libralibra
Tue Apr 03, 2018 6:44 pm
Forum: Personal Finance (Not Investing)
Topic: Replacement for Google Finance price quote function
Replies: 78
Views: 11795

Re: Replacement for Google Finance price quote function

replace as the first arg to your INDEX function (the bolded part below): 1yr ago=GOOGLEFINANCE("IBM","price", today()-365) 5yr ago=GOOGLEFINANCE("IBM","price", today()-365*5) beginning of this year=GOOGLEFINANCE("IBM","price", date(year(today()),1,1)) ps. you could simplify the formula to = GOOGLEFI...
by libralibra
Tue Apr 03, 2018 12:06 pm
Forum: Investing - Theory, News & General
Topic: Where Nobel Economists Put Their Money
Replies: 19
Views: 4811

Re: Where Nobel Economists Put Their Money

“A lot of wealth is gone, and there is no reason for it to come back.” I note that this article was dated 10/8/2008. None of my 2008 wealth was gone, it was just hiding in the market. I did not panic, and low and behold, my wealth has expanded quite a bit in the last 10 years. This quote of Merton'...
by libralibra
Mon Apr 02, 2018 9:42 pm
Forum: Investing - Theory, News & General
Topic: The Final, Definitive Thread on Brokerage Transfer Bonuses
Replies: 1044
Views: 184709

Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Box 3 triggers a question like "intent to earn money" or something. Make sure you answer "no", otw it will consider it SE income. I had a brokerage bonus show up as Interest which I was pretty unhappy to see since it adds to the Obamacare tax. Called to see if they would recategorize it as Misc, but...
by libralibra
Mon Apr 02, 2018 6:36 pm
Forum: Personal Finance (Not Investing)
Topic: Can after tax HSA money be recharacterized?
Replies: 12
Views: 830

Re: Can after tax HSA money be recharacterized?

Maybe pre-payroll-tax is clearer. btw, I wonder if this has a big effect on future SS benefits. If you earn a lot, probably not (esp if over the threshold). But if the HSA contribution decreases your SS wage income by 5 or 10%, it could have a large impact - just for saving a couple hundred now.
by libralibra
Fri Mar 30, 2018 12:24 pm
Forum: Personal Finance (Not Investing)
Topic: Gifting Appreciated Stocks to Grandparent to pay Child's Private School Tuition
Replies: 121
Views: 7263

Re: Gifting Appreciated Stocks to Grandparent to pay Child's Private School Tuition

As long as paying grandchild's tuition is a condition of the gift, it doesn't appear to me that it's a completed gift since OP wouldn't be relinquishing absolute control. It sounds like almost the opposite, since you have more control over a custodial account than over the grandparents. I.e. they c...
by libralibra
Thu Mar 29, 2018 1:35 pm
Forum: Investing - Theory, News & General
Topic: The Final, Definitive Thread on Brokerage Transfer Bonuses
Replies: 1044
Views: 184709

Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

https://www.tdameritrade.com/offer/for90days/index.html

also, if you get a referral from a friend, the offer is the same and your friend gets $50. Last year around this time TD bumped that up to $200 for the friend, so you could wait and see if that happens again.
by libralibra
Wed Mar 28, 2018 10:57 pm
Forum: Personal Finance (Not Investing)
Topic: Gifting Appreciated Stocks to Grandparent to pay Child's Private School Tuition
Replies: 121
Views: 7263

Re: Gifting Appreciated Stocks to Grandparent to pay Child's Private School Tuition

Yep, totally agree. It illustrates my point that whenever someone pulls out the "it's obviously a step transaction!" argument as if it's decided law, I have to question why they are also so sure similar cases don't seem to qualify (hopefully it's not just "gut feeling"). If someone could cite some a...
by libralibra
Wed Mar 28, 2018 4:10 pm
Forum: Personal Finance (Not Investing)
Topic: Gifting Appreciated Stocks to Grandparent to pay Child's Private School Tuition
Replies: 121
Views: 7263

Re: Gifting Appreciated Stocks to Grandparent to pay Child's Private School Tuition

Which is exactly what Kitces is proposing - gift shares to student, student sells at lower tax rate, then uses the money to pay for school. It's exactly the same steps as the grandparents case, so if the step transaction doctrine applies, it would apply equally to both cases since the end result is...
by libralibra
Wed Mar 28, 2018 3:11 pm
Forum: Personal Finance (Not Investing)
Topic: Gifting Appreciated Stocks to Grandparent to pay Child's Private School Tuition
Replies: 121
Views: 7263

Re: Gifting Appreciated Stocks to Grandparent to pay Child's Private School Tuition

Kitces wrote an entire article about gifting shares to pay for college and avoid taxes, and no one seemed to bat an eye. https://www.kitces.com/blog/liquidate-appreciated-securities-tax-free-for-college-funding-by-avoiding-the-kiddie-tax/ The only difference was that the gift was to the child, not ...
by libralibra
Wed Mar 28, 2018 1:39 pm
Forum: Personal Finance (Not Investing)
Topic: looks like i just created a wash sale with dividends...what next?
Replies: 5
Views: 767

Re: looks like i just created a wash sale with dividends...what next?

Basically, what happened is no big deal. I assume you said this only because of the $ amounts involved here, otw a wash sale triggered in an IRA is actually the worst of all wash sale scenarios. The deferred loss is completely lost in this case and you never get it back. Maybe we are only talking a...
by libralibra
Wed Mar 28, 2018 1:21 pm
Forum: Personal Finance (Not Investing)
Topic: Gifting Appreciated Stocks to Grandparent to pay Child's Private School Tuition
Replies: 121
Views: 7263

Re: Gifting Appreciated Stocks to Grandparent to pay Child's Private School Tuition

Kitces wrote an entire article about gifting shares to pay for college and avoid taxes, and no one seemed to bat an eye. https://www.kitces.com/blog/liquidate-appreciated-securities-tax-free-for-college-funding-by-avoiding-the-kiddie-tax/ The only difference was that the gift was to the child, not g...
by libralibra
Wed Mar 28, 2018 12:01 pm
Forum: Local Chapters and Bogleheads Community
Topic: A lot of heavy hitters this morning
Replies: 244
Views: 20155

Re: A lot of heavy hitters this morning

On my lunchtime walk yesterday, I found a dime in the parking lot. When I got home, I showed my wife and told her all about it. It's why we'll be able to retire with 50X spending. :D Lucky! Must have been a https://en.wikipedia.org/wiki/1894-S_Barber_dime https://upload.wikimedia.org/wikipedia/comm...
by libralibra
Wed Mar 28, 2018 1:05 am
Forum: Personal Finance (Not Investing)
Topic: Gifting Appreciated Stocks to Grandparent to pay Child's Private School Tuition
Replies: 121
Views: 7263

Re: Gifting Appreciated Stocks to Grandparent to pay Child's Private School Tuition

The grandparent's cost basis will be the fair market value at the time of the donation, so if the grandparent immediately sells it, their capital gains will be zero. That's not correct. The basis for the recipient of the gift will be the same as the basis for the person who made the gift. Not accor...