Search found 6048 matches

by Artsdoctor
Wed Mar 27, 2024 7:03 pm
Forum: Personal Finance (Not Investing)
Topic: How to use Capital Loss Carryover- any updates?
Replies: 11
Views: 731

Re: How to use Capital Loss Carryover- any updates?

Count de Monet wrote: Wed Mar 27, 2024 6:26 pm Lobby your congressman to increase the $3K limit. It hasn't increased in decades (I'm not sure exactly when it was first enacted).
Hmm. Let's see. The law was enacted in 1977. It looks like the average annual inflation since that time was around 3.5% or so.

So a $3,000 loss in 1977 was be the equivalent of about . . . $15,000 today!
by Artsdoctor
Wed Mar 27, 2024 6:20 pm
Forum: Personal Finance (Not Investing)
Topic: How to use Capital Loss Carryover- any updates?
Replies: 11
Views: 731

Re: How to use Capital Loss Carryover- any updates?

Your losses may come in handy if you sell your house. The $250,000/$500,000 capital gain exemption has not been indexed to inflation and if you live in a HCOL area, the carryover losses may help you when/if you sell.
by Artsdoctor
Wed Mar 27, 2024 3:26 pm
Forum: Personal Investments
Topic: HSA question
Replies: 7
Views: 686

Re: HSA question

If you can, contribute the maximum allowable for 2023. Having the contributions go through your employer and paycheck is fine, but you can easily contribute on your own through electronic transfer or check. You'll fill out tax form 8889 and the amount you're contributing separate from your paycheck will then be deducted from your taxable income.
by Artsdoctor
Tue Mar 26, 2024 6:53 pm
Forum: Investing - Theory, News & General
Topic: Never selling shares
Replies: 57
Views: 4347

Re: Never selling shares

Being a Boglehead is great and it is a very rational approach. But my Dad never owned index funds, just individual stocks, and never owned international and things turned out well imo. I think there are many different feasible approaches to get to financial goals. Yes, of course. There are many different ways. Your parents seem to be living below their means, and their investments are ear-marked for a younger generation. If they're happily living off of their current income stream and have plenty of a cushion in case of emergencies (such as selling some of those shares, for example), then they're just fine. Unless there's some sort of inevitable company failure that he's unwilling to acknowledge, then I'd just sit back and enjoy your time ...
by Artsdoctor
Tue Mar 26, 2024 4:03 pm
Forum: Personal Investments
Topic: Does the IRS care if I report a basis of zero?
Replies: 21
Views: 3175

Re: Does the IRS care if I report a basis of zero?

I wouldn't use zero as the cost basis. You can try finance.yahoo.com to get the price history, or you can do an AI search. It may not be perfect but it would definitely be better than using zero. Hopefully there weren't a lot of dividends reinvested but even if you picked the lowest price during your holding period, it'd still be better than zero.
by Artsdoctor
Tue Mar 26, 2024 3:51 pm
Forum: Personal Finance (Not Investing)
Topic: US obligations not included in the 1099
Replies: 12
Views: 508

Re: US obligations not included in the 1099

We're in the same boat: you're in New York and I'm in California, and we have "special" rules.

If the mutual fund in question doesn't contain 50% USGO, none of the dividends will be exempt from state income tax. So in answer to your question regarding the Federal Money Market fund, all of the income will be taxed in New York (as it will be in California).

You can read the small print at the bottom of the pages:

https://personal1.vanguard.com/pdf/USGOIN_2023.pdf
by Artsdoctor
Tue Mar 26, 2024 3:45 pm
Forum: Personal Finance (Not Investing)
Topic: Confirming my understanding of RMD Basics
Replies: 18
Views: 1453

Re: Confirming my understanding of RMD Basics

Thanks again. So basically, If we receive refund from federal taxes, we have met safe harbor? Getting a refund means that you overpaid taxes last year. Safe harbor refers to the amount of taxes you need to pay in the current year to avoid an underpayment penalty. You achieve a safe harbor when taxes you've paid for the current year equal at least 90 percent of the current year tax, or 100 percent of prior year’s tax liability (110 percent for high income taxpayers). Great, thank you all for the input. One thing you might consider--and there are many ways to pay taxes for sure--is this: You're getting your social security benefits monthly. Currently, you're having taxes withheld. You were born in 1952 and your first RMD will be taken in 202...
by Artsdoctor
Tue Mar 26, 2024 11:33 am
Forum: Investing - Theory, News & General
Topic: Taxation of Treasury bills, notes and bonds
Replies: 1078
Views: 157279

Re: Taxation of Treasury bills, notes and bonds

^ Instructions for Form 8949. It'll tell you everything you have to know but it's very long and the information is buried. The answer is in the section called "Worksheet for Accrued Market Discount Adjustment in Column (g)".
by Artsdoctor
Tue Mar 26, 2024 11:32 am
Forum: Personal Finance (Not Investing)
Topic: An unintended visit from "Aunt IRMAA"?
Replies: 41
Views: 7276

Re: An unintended visit from "Aunt IRMAA"?

Hi friends, I think we may have unintentionally exceeded our goals for 2023 mAGI as shown below :oops: (did not want to exceed standard IRMAA limits). Can I put money into my tIRA to reduce my mAGI at this point in time ? If not is there anything else I can do ? I was introduced to Aunt IRMAA in Dec 2023 when I received my Jan 2024 Medicare statement. My monthly premium had increased by almost $100. I did some research and discovered our additional income in 2022 (our RV purchase just got more expensive :D ) and triggered IRMAA for me. And guess what, the Lexus we bought in 2023 is resulting in a potential additional year of IRMAA premiums if threshold is $210,000 (our current AGI is $210,167). Another option to tIRA contribution might be ...
by Artsdoctor
Mon Mar 25, 2024 4:17 pm
Forum: Investing - Theory, News & General
Topic: Taxation of Treasury bills, notes and bonds
Replies: 1078
Views: 157279

Re: Taxation of Treasury bills, notes and bonds

^ Merry: I am sure that many, many people are doing what you're doing. Brokers will give you instructions that are either incomplete, confusing, or even incorrect. Fidelity's pretty good but this is what you have to do: First, you should take a look at the IRS Publication: Instructions for Form 8949. It'll tell you everything you have to know but it's very long and the information is buried. The answer is in the section called "Worksheet for Accrued Market Discount Adjustment in Column (g)". Second, you did everything right but you didn't finish the process. You'll enter the information on Form 8949 but when you get to the line where you're entering the information from Fidelity, you'll need to make an "Adjustment." It i...
by Artsdoctor
Mon Mar 25, 2024 8:40 am
Forum: Personal Finance (Not Investing)
Topic: Medicare: Getting Part A and D only
Replies: 89
Views: 4989

Re: Medicare: Getting Part A and D only

If the timing of diagnosis and enrollment in Part B falls within General Enrollment of Jan-Mar, there would be quicker coverage, but if the diagnosis comes on April 1st, the day after General Enrollment for Part B ends, they would not get that General Enrollment option again until January 1st of the next year, 9 months later, with coverage beginning February 1st, 10 months later. A lot of time to wait for insurance coverage to begin. Unless there is some other way? Short of managing to get yourself arrested and jailed, perhaps for something principled and arguably legal like being a journalist observing a nonviolent protest march in a place where police are known to be excessively likely to arrest innocent bystanders, which could maybe tri...
by Artsdoctor
Sun Mar 24, 2024 4:52 pm
Forum: Personal Finance (Not Investing)
Topic: Medicare: Getting Part A and D only
Replies: 89
Views: 4989

Re: Medicare: Getting Part A and D only

I think it's more than reasonable for people to make their own insurance-related decisions after learning about the pros and cons of having/not having coverage. The problem here will always be how opaque the current system is, even for Medicare recipients. You'll find a lot of lists that appear to place services neatly into Part A and Part B columns, but healthcare billing is always going to be more complicated that that. For the purposes of this forum, I think that it would be unrealistic for most seniors to try and navigate the system adroitly enough to avoid Medicare Part B. There is a personal view that if you have a healthy lifestyle, you're unlikely to need a lot of medical care; however, my entire career has been filled with accident...
by Artsdoctor
Sun Mar 24, 2024 4:28 pm
Forum: Personal Finance (Not Investing)
Topic: Understanding Inherited IRA with delayed RMDs
Replies: 17
Views: 888

Re: Understanding Inherited IRA with delayed RMDs

No, you use the single life expectancy from Publication 590-B Appendix B and then follow the reduce the factor by 1 for each subsequent year until the tenth year when 100% needs to be distributed. But it's not clear to me if you go back to the life expectancy in 2022 and then reduce from there or if you start with 2024 number due to the 2022 and 2023 RMD deferral. I'm guessing the former so if the 2022 life expectancy was 30, then it would be 28 this year and your RMD this year would be 1/28 of the 12/31/23 closing balance, then in 2025 it would be 1/27 of the 12/31/24 closing balance, etc. until 2031 (not 2032 AFAIK) when you need to distribute the remaining balance. Ah, it’s starting to make sense. I found p590-b, and the calculation rou...
by Artsdoctor
Sun Mar 24, 2024 3:52 pm
Forum: Personal Finance (Not Investing)
Topic: Medicare: Getting Part A and D only
Replies: 89
Views: 4989

Re: Medicare: Getting Part A and D only

EricGold wrote: Sun Mar 24, 2024 3:25 pm
Artsdoctor wrote: Sat Mar 23, 2024 9:31 am Although Part A would pay for hospital charges, there would be no coverage for physicians so he'd essentially be uninsured in regards to healthcare providers charges.
Are you sure about this ? I'm under the impression that independent contractors would bill separately but not hospital employees, physician or otherwise.
I'm very sure. I've been billing Medicare for hospital visits for decades.

You can see what Part A covers here: Scroll down (or search "Part B") and you can see what's covered and how.

https://www.medicare.gov/coverage/inpat ... 20hospital.
by Artsdoctor
Sun Mar 24, 2024 1:43 pm
Forum: Investing - Theory, News & General
Topic: VTIAX expense increase: why?
Replies: 16
Views: 2039

Re: VTIAX expense increase: why?

Vanguard will tell you that mutual funds are slightly more expensive for them than ETFs. The OP may be interested in converting the mutual fund shares to the ETF version (VXUS); that ER is 0.08%. There is the bid-ask spread but that's generally tiny.
by Artsdoctor
Sun Mar 24, 2024 1:38 pm
Forum: Personal Investments
Topic: HSA Tax efficiency in CA
Replies: 21
Views: 1655

Re: HSA Tax efficiency in CA

Learning: Let's back up for a moment. CA doesn't make it easy but once you get the hang of it, you'll be fine. 1. From a federal point of view. All of your contributions are put in to your HSA pre-tax. You won't pay any federal income tax on the money you put in, you won't pay any tax on dividends/gains, and you won't pay any income tax when you take money out provided it's used for medical expenses. If you're 65+, you can take the money out for any reason but if it's for non-medical expenses, you'll pay income tax on that amount. 2. From a state (CA) point of view. The state treats it just like any other brokerage account. It doesn't even recognize an HSA as any special account at all. That means that all your contributions will not be in ...
by Artsdoctor
Sat Mar 23, 2024 6:09 pm
Forum: Personal Investments
Topic: HSA Tax efficiency in CA
Replies: 21
Views: 1655

Re: HSA Tax efficiency in CA

Regarding IRA-like distributions, at some point you'll want to withdraw money from your HSA. When you do, you'll need to check off a box on your federal tax return that verifies that you're using the money for qualified medical expenses. If you don't check that box and you're over 65, the money that you've withdrawn would be treated like ordinary income on your federal return. From a state income tax point of view, it doesn't matter what you withdraw the money for before the state doesn't really recognize it as a tax-favored account. Do I owe tax on the basis as well or just the capital gains? Take a look at Form 8889. You'll see a part for Distributions. You'll need to specify that the distributions are for Qualified Medical Expenses. If ...
by Artsdoctor
Sat Mar 23, 2024 4:47 pm
Forum: Personal Finance (Not Investing)
Topic: Overcontributed to HSA in 2023 - Easiest Path Forward
Replies: 6
Views: 482

Re: Overcontributed to HSA in 2023 - Easiest Path Forward

spankasmurf wrote: Sat Mar 23, 2024 3:12 pm Just short your 2024 contribution by the amount of overcontribution in 2023. Pay the 6% fine for this year. No forms.
I know that this has been debated before (with varying conclusions) but I think that you're correct about deducting the excess in 2024. This is the best reference I could find without looking too far:

https://www.goodrx.com/insurance/fsa-hs ... ntribution
by Artsdoctor
Sat Mar 23, 2024 3:07 pm
Forum: Personal Finance (Not Investing)
Topic: Medicare premiums reimbursements from HSA
Replies: 17
Views: 1400

Re: Medicare premiums reimbursements from HSA

For me, I'd be weary about doing both. Both are tax benefits so it would seem that you'd be double-dipping. I'd reason it like this: 1. The SEHID allows self-employed individuals to deduct health insurance premiums (including Medicare premiums) as a business expense. On the other hand, HSA withdrawals for eligible medical expenses are also tax-free. If you’ve already deducted the premium through SEHID, you’ve received a tax benefit. 2. Generally, the IRS prevents double-dipping. You cannot claim the same expense for both the SEHID deduction and HSA reimbursement. In other words, you cannot use HSA funds to reimburse yourself for expenses that you’ve already deducted through SEHID. Now, I'll be the first admit that common sense sometimes doe...
by Artsdoctor
Sat Mar 23, 2024 1:47 pm
Forum: Personal Finance (Not Investing)
Topic: Medicare: Getting Part A and D only
Replies: 89
Views: 4989

Re: Medicare: Getting Part A and D only

I read a stat somewhere along the way that about 20% of those eligible go without Part B for some reason? My guess is the biggest reason is probably lower income. However, if income is low enough, it would seem better to enroll in Part B and Medicaid rather than be without Part B. I think at least in some States if one qualifies for Medicaid, then the State pays for the Part B premium and possibly the Part D premium or part of it, with lower Part D cost share? Could be worth looking into as an option. I think there might be similar combos of Medicare Advantage plans with Medicaid? There have been multiple studies looking at healthcare coverage among American over 65. The number of Americans over 65 without any coverage whatsoever is tiny. ...
by Artsdoctor
Sat Mar 23, 2024 9:31 am
Forum: Personal Finance (Not Investing)
Topic: Medicare: Getting Part A and D only
Replies: 89
Views: 4989

Re: Medicare: Getting Part A and D only

I'm kicking this around. I know I'm not getting any younger and may change my mind, but for most of the years of my life, I've gone to a Dr once a year, for a physical. Typical Dr office costs are in the $200-400 range (a physical would probably be somewhat more). I'd pay more per year in just a few months of Part B. Thoughts? Too risky? Too something else I'm not thinking of? I have a friend who does this. He’s 80 yo and substantially ahead in terms of savings. Yes he is healthy but he and I know that it might have been otherwise. He worked in the health insurance industry for 20 plus years. I personally wouldn’t go that direction but I understand that’s not completely insane. You pay your money. You take your chances. I can't recommend t...
by Artsdoctor
Fri Mar 22, 2024 7:54 pm
Forum: Personal Finance (Not Investing)
Topic: What should a taxpayer expect a CPA to do?
Replies: 27
Views: 2982

Re: What should a taxpayer expect a CPA to do?

Our tax returns are done by a CPA. We pay both Federal and state tax. Income from US Govt obligations is not taxed by states. Our CPA does NOT examine our fund holdings to ascertain if some of their dividends come from US Govt obligations. For example, 49.37 % of dividends paid by Vanguard Federal Money Market Fund (the settlement fund) in 2023 were from US Govt obligations. The CPA listed all dividends from the fund as taxable until I gave her a note referring to a Vanguard file listing US Govt obligations percent for all their funds/ETFs. Should we expect a CPA doing our tax returns to pay attention to such details without prompting? Having a CPA is, in my opinion, all about dialogue. You can teach each other as you go along (they know t...
by Artsdoctor
Fri Mar 22, 2024 6:47 pm
Forum: Personal Finance (Not Investing)
Topic: AARP/UHC Medicare supplement plan cost analysis: What am I missing?
Replies: 8
Views: 791

Re: AARP/UHC Medicare supplement plan cost analysis: What am I missing?

you are overthinking this. CA allows folks to change plans every year without medical underwriting (Birthday Rule), so if you don't like who you pick this year, you can change them next year. My suggestion is to purchase one of the cheapest Plan N that you can find. fwiw: in my SoCal zip, UHC is one of the most expensive plans. (USAA is the cheapest.). You can compare approved rates on the link below. https://interactive.web.insurance.ca.gov/apex_extprd/f?p=111:30 This is an important point. The OP lives in CA but it's important to underscore that every state has their own idiosyncrasies pertaining to switching Medigap policies. You're right that in CA, you can switch plans within that 60 day period after your birthday. However, you can on...
by Artsdoctor
Fri Mar 22, 2024 2:33 pm
Forum: Personal Finance (Not Investing)
Topic: AARP/UHC Medicare supplement plan cost analysis: What am I missing?
Replies: 8
Views: 791

Re: AARP/UHC Medicare supplement plan cost analysis: What am I missing?

I don't think you're going to be able to predict future rates but you'd like to shoot for stability at least. Because some states have very restrictive rules regarding switching Medigap policies, I've come to the conclusion that it's probably better to go with a company which is large and has a reasonable track record. UHC has its problems and I've certainly not enjoyed dealing with them getting prior authorizations for years in clinical practice, but they are endorsed by AARP and they are huge. AARP is also huge and I have to believe that their lobbying power would be a disincentive for UHC to do anything dramatically underhanded. I could be wrong, of course.
by Artsdoctor
Fri Mar 22, 2024 8:12 am
Forum: Personal Investments
Topic: HSA Tax efficiency in CA
Replies: 21
Views: 1655

Re: HSA Tax efficiency in CA

Regarding IRA-like distributions, at some point you'll want to withdraw money from your HSA. When you do, you'll need to check off a box on your federal tax return that verifies that you're using the money for qualified medical expenses. If you don't check that box and you're over 65, the money that you've withdrawn would be treated like ordinary income on your federal return.

From a state income tax point of view, it doesn't matter what you withdraw the money for before the state doesn't really recognize it as a tax-favored account.
by Artsdoctor
Thu Mar 21, 2024 7:20 pm
Forum: Personal Investments
Topic: HSA Tax efficiency in CA
Replies: 21
Views: 1655

Re: HSA Tax efficiency in CA

^ From a state point of view, your HSA in CA is just another brokerage account. You'll pay income tax on any dividends, and you'll pay income tax on any capital gains. You should keep track of the reinvestment of dividends because they'll go towards your cost basis (meaning, you'll pay income tax only on the gains of the reinvested dividends when you sell). From a federal point of view, your distributions from your HSA will only be tax-free if they're used for qualified medical expenses. After 65, you can withdraw those funds for non-medical expenses but you'll be taxed just like an IRA on withdrawal. Therefore, keep any medical receipts now so you can "reimburse" yourself later. This is really not a big deal in CA, especially whe...
by Artsdoctor
Thu Mar 21, 2024 7:11 pm
Forum: Personal Finance (Not Investing)
Topic: Capital loss carryover question
Replies: 10
Views: 686

Re: Capital loss carryover question

My MIL has $61k of capital loss carryover. If she has $50k of capital gains this year , can she offset all $50k on next year's tax return? No. If $50k gains are realized in 2024, then $50k will be offset against the $61k carry-over loss on 2024 tax return. I agree--the original post could have been clearer. I'm interpreting it this way: MIL just had her 2023 taxes completed and there's a $61K carryover loss. She has a capital gain in 2024 of $50K. When her 2024 tax forms are completed next year, the $50K gain will be offset by $50K of the carryover losses, she'll take the maximum $3K loss on the 2024 return, and she'll have the remaining carryover loss of $8K which she can apply to future gains or take the maximum $3K loss on her 2025 retu...
by Artsdoctor
Thu Mar 21, 2024 7:03 pm
Forum: Personal Finance (Not Investing)
Topic: Can I take and additional QCD after taking RMD
Replies: 13
Views: 881

Re: Can I take and additional QCD after taking RMD

Thanks for the replies. I should have waited but I took out a QCD, then took the additional amount as an RMD and had tax withheld for the RMD portion. So my RMD is satisfied. Now I want to take an additional amount as a QCD for a charity. I am under the $105,000 that can be taken as a QCD. I checked with my accountant to see if she knew how to fill in out on the IRS forms if I took an additional QCD. She said there would be no problem. I do not intend taking out any further money from my IRA for personal expenditure as I have taxable accounts, plus pensions and SS. Thanks. Lynette It's really easy to enter the QCD on your tax form. The real trick is to remember that you took the QCD because 1099-R will not reflect this. When you give the 1...
by Artsdoctor
Thu Mar 21, 2024 2:53 pm
Forum: Personal Finance (Not Investing)
Topic: Can I take and additional QCD after taking RMD
Replies: 13
Views: 881

Re: Can I take and additional QCD after taking RMD

^ This causes confusion. There is no required sequence here. However, you can USE sequence if you like. First, you can take $105,000 out of your IRA in 2024 for your QCD. You'll get a 1099-R showing the distribution but QCD won't be on the 1099-R; you'll need to make sure you tell your accountant about it or write it on your 1040. Second, you can take that QCD anytime you'd like. However, if you take any distribution at all from your IRA to yourself, you'll owe tax on it. So if you take $105,000 out for your QCD and you want another $10,000 for yourself, you're going to pay tax on that $10,000 regardless of when you took it. However, it matters when the amounts are smaller. For example, let's say your RMD is $10,000 for the year. You're not...
by Artsdoctor
Thu Mar 21, 2024 2:40 pm
Forum: Personal Investments
Topic: Long term capital gains vs long term capital losses.
Replies: 5
Views: 348

Re: Long term capital gains vs long term capital losses.

As far as replacement for those shares, I'd opt for an tax-exempt fund (say, a money market fund or a limited-term tax-exempt fund if you like).
by Artsdoctor
Thu Mar 21, 2024 2:38 pm
Forum: Personal Investments
Topic: Long term capital gains vs long term capital losses.
Replies: 5
Views: 348

Re: Long term capital gains vs long term capital losses.

If you had a loss of $5M, you could theoretically offset your $5M gain altogether so there's no limit. After all is said and done, you can only declare a net capital loss of $3,000 each year but you can carryover losses in excess of that. In your particular case, your mutual fund share loss could easily be used to decrease your gain.
by Artsdoctor
Thu Mar 21, 2024 2:32 pm
Forum: Personal Finance (Not Investing)
Topic: NY State tax treatment of Accrued Market Discount for US Treasury Note
Replies: 76
Views: 6157

Re: NY State tax treatment of Accrued Market Discount for US Treasury Note

Any information on how other tax software (especially pro software) treats this issue or how CPAs are dealing with it? There have been several posts on tax advice websites. The consensus seemed to be that there is no NY law to the contrary so most tax professionals would exempt AMD in NY from state income tax. If someone had very large numbers, some accountants may offer caution to the client about the lack of clarity in state tax law but would probably follow that caution with an acknowledgement that they had never had problems in their past experiences. That seems to be the way many, if not most, states handle it. In addition to my own correspondence to the California FTB several years ago confirming that AMD would be exempt from state i...
by Artsdoctor
Wed Mar 20, 2024 9:07 pm
Forum: Investing - Theory, News & General
Topic: Is active mutual fund’s capital gain always a bad thing?
Replies: 28
Views: 2329

Re: Is active mutual fund’s capital gain always a bad thing?

I used to work in mutual fund accounting. This entire line of questioning is mostly sterile. Capital gains distributions are about income recognition per reportable transactions as defined by the IRS. Tax recognition has only the lossless relationship to performance. There are so many moving parts. Purchases/redemptions from the fund. Carry over losses. Embedded unrealized gains / losses. etc. It is sterile, to be sure. In a tax-advantaged account, it makes no difference whatsoever. It's not sterile for a lot of investors holding the fund in a taxable account. It's a needless expense and, for the most part, an annoyance which offers no gain and may cost money. If an investor is contemplating purchasing a fund in a taxable account, take a l...
by Artsdoctor
Wed Mar 20, 2024 6:28 pm
Forum: Investing - Theory, News & General
Topic: Taxation of Treasury bills, notes and bonds
Replies: 1078
Views: 157279

Re: Taxation of Treasury bills, notes and bonds

^ Factual Fran: Yes, that's exactly right. If you use adjustment code D, it should shunt the gain to interest. The only other thing that needs to be done for some (all?) software users is to make sure that the interest is then backed out of state tax since it would be tax-exempt there (the software program wouldn't know that your interest is from a government obligation).
by Artsdoctor
Wed Mar 20, 2024 5:51 pm
Forum: Investing - Theory, News & General
Topic: Trading Treasuries (nominal and TIPS)
Replies: 4191
Views: 466841

Re: Trading Treasuries (nominal and TIPS)

The 10-yr TIPS (2034) 91282CJY8 is reopened for auction with Indicative yld of 1.939 and price of $99.35. On the secondary mrkt the bond is sold for $98.29 with YTM of 1.943. Does this make the purchase on the sec. mkt a better return? You'll never really know. If you buy that bond on the secondary market right now, you know what you'll get although there will be bid-ask spread, usually very small. If you buy at auction, there won't be any bid-ask spread (everyone gets the same price) but you won't know exactly what your yield will be until the auction (it will mirror the secondary market closely though). Some people prefer one method over the other, and sometimes opinions are pretty strong. It's personal preference and many people do both.
by Artsdoctor
Wed Mar 20, 2024 5:33 pm
Forum: Personal Consumer Issues
Topic: Bought a new Lexus - can't get a second key for 3-5 months???
Replies: 54
Views: 6186

Re: Bought a new Lexus - can't get a second key for 3-5 months???

There was significant problem with microchip backlogs during the worst part of the pandemic. You were given a second key but not a fob. The whole unit will take about 6-9 months to get to your dealer although perhaps it's a bit better now. (We purchased a Lexus in February 2023 and got the second unit in December).

In reading over your original post, it actually sounds as if your salesperson misrepresented the delay to you. It has been common knowledge for the past year that the delay has been in months, not weeks. You can see if the manager can help or bump it up to corporate, but I don't think that they can make a new unit appear out of nowhere.
by Artsdoctor
Wed Mar 20, 2024 4:30 pm
Forum: Investing - Theory, News & General
Topic: Taxation of Treasury bills, notes and bonds
Replies: 1078
Views: 157279

Re: Taxation of Treasury bills, notes and bonds

Pre-maturity sales of notes (and bonds, I presume) ARE reported by Schwab on 1099-B. Proceeds less basis is split between accrued market discount and capital gain I just saw this... That wasn't my experience. I sold two T-notes prior to maturity last year and my Schwab 1099-B put the entire gain in box 1f, with "0" in the Realized Gain or (loss) column. I calculated the 'ratable market discount' and entered in the adjustment column g (f8949), with the difference in gain/loss column h. Were your entries in column h both losses? Cuz if the notes sold for more than acquisition basis but less than or equal to acquisition basis plus calculable accrued discount, then the correct "splits" in both cases would be: 100% accrued d...
by Artsdoctor
Wed Mar 20, 2024 4:04 pm
Forum: Investing - Theory, News & General
Topic: Questions on 1099-B (ratable discount for treasuries sold prior to maturity)
Replies: 17
Views: 2878

Re: Questions on 1099-B (ratable discount for treasuries sold prior to maturity)

If you are uneasy with the ambiguities, then I wouldn't sell your T-bills before maturity. As noted in my original post, I already understand how to calculate the ratable share. I was just trying to understand why Schwab didn't report the sale of a capital asset. Now I know. The other question I asked, which I guess is more of a rhetorical question, is why the instructions for 8949 completely ignore the requirement to parse gains on discounted debt instruments into the ratable discount (or constant yield) portion and the capital gain/loss portion, especially for T-Bills since brokerage firms aren't required to report these. When you receive your 1099s from your broker, you'll first want to see exactly what has been reported to the IRS. Mos...
by Artsdoctor
Wed Mar 20, 2024 1:44 pm
Forum: Investing - Theory, News & General
Topic: Questions on 1099-B (ratable discount for treasuries sold prior to maturity)
Replies: 17
Views: 2878

Re: Questions on 1099-B (ratable discount for treasuries sold prior to maturity)

^ If you're selling your T-bills before maturity, the broker will not report the sale. This has been effect for 10 years or so. You can probably do an AI search to find the exact tax regulation. There are multiple threads about this, and CPAs will handle this differently. You're going to find a couple of opinions on this. If you are uneasy with the ambiguities, then I wouldn't sell your T-bills before maturity. First, you figure out your ratable rate. You find your settlement date and the maturity date, figure out the number of days, and figure out your earned interest per day if you hold until maturity. That's your ratable rate. Second, you figure out how many days you held the T-bill if you sold before maturity. You'll multiple the number...
by Artsdoctor
Wed Mar 20, 2024 9:05 am
Forum: Personal Investments
Topic: Can TIPS in a taxable account make sense?
Replies: 22
Views: 2688

Re: Can TIPS in a taxable account make sense?

If you live in a high income tax rate state, it is better to hold them in taxable. If you hold the tips in tax deferred you pay state tax on the interest when you withdraw. If you hold them in taxable, you will not pay state tax. Last I checked, the usual state tax ate here in California is about 9.3%, but it can go over 12%. Everyone will need to do their own tax calculations. It's true that TIPS in a taxable account will generally not be taxed at the state level although selling before maturity can be a headache. But you will be paying income tax at the federal level each year, and you'll have no choice on the year that you'll be paying that tax. This can work for people who are not in a higher marginal tax bracket but having TIPS in a t...
by Artsdoctor
Wed Mar 20, 2024 8:59 am
Forum: Personal Investments
Topic: Looking for info/advice from Californians investing with an HSA
Replies: 52
Views: 5728

Re: Looking for info/advice from Californians investing with an HSA

^ If you're going to use the HSA as an investment account, I'd still recommend using software which will allow to track the cost basis (and specific lot identification). The reason for this is that you'll eventually start selling your (hopefully appreciated) shares, and you might want to sell shares with the least appreciated cost first. Your statements won't help you with that. The statements also won't keep track of the reinvested dividends which may make your cost basis more difficult to calculate.

Ultimately, your CA capital gains/losses will be different than your federal capital gains/losses. This is easily taken care of with software but I don't think that statements alone will help you with that.
by Artsdoctor
Wed Mar 20, 2024 8:54 am
Forum: Personal Finance (Not Investing)
Topic: Your experience-Vanguard Charitable Endowment Program?
Replies: 20
Views: 2780

Re: Your experience-Vanguard Charitable Endowment Program?

I've been using VCEP since 2007, and have generally had a good experience. I like it because I can transfer cash and appreciated securities from my Vanguard brokerage with not much more than a single click. I leave only a small amount in my VCEP account. Two recent events have been somewhat surprising: 1. I use the VCEP money market option to store the minimal balance and recently noticed a decrease in the account value. I asked VCEP about this and received the following reply: "The movement you are seeing is the returns for the money market fund. Even though money market is fairly stable, there will still be fluctuations in account value" I had no idea that the VCEP MMF does not attempt a stable value of $1/share. In fact, the M...
by Artsdoctor
Tue Mar 19, 2024 5:24 pm
Forum: Personal Finance (Not Investing)
Topic: IRS slow this year (2024)
Replies: 27
Views: 2918

Re: IRS slow this year (2024)

For those still filing paper returns, there may be a considerable wait. The IRS provides some information on that wait with tracking points here:

https://www.irs.gov/refunds/what-to-exp ... -this-year
by Artsdoctor
Tue Mar 19, 2024 5:16 pm
Forum: Personal Investments
Topic: Rebalancing Yearly in Taxable - how to LTCG?
Replies: 15
Views: 1343

Re: Rebalancing Yearly in Taxable - how to LTCG?

I would not rebalance if it cost me money. There are too many ways to accomplish your goals without resorting to that. Some are: 1. Hopefully, you will tax-loss harvest throughout the year whenever the opportunity arises. That way, if you have to sell something at a gain in your taxable account, it won't cost you. 2. If you like, you can turn off auto-investment of dividends in your taxable account and put the dividends where they're needed most. 3. There are usually plenty of opportunities to rebalance in your tax-advantaged accounts. 4. It's nice to have an initial plan that proports to hold your Roth until the very last part of your life so keeping more aggressive investments there can make sense. But in fact, most retirees are going to ...
by Artsdoctor
Tue Mar 19, 2024 2:38 pm
Forum: Investing - Theory, News & General
Topic: Trading Treasuries (nominal and TIPS)
Replies: 4191
Views: 466841

Re: Trading Treasuries (nominal and TIPS)

gavinsiu wrote: Tue Mar 19, 2024 1:39 pm A question about TIPS auction. According to tips watch, the next one for 5 year TIPS will be april 18. If I want to grab some 5 year tips at Fidelity, will there be a lead time when I can put a bid in for those bonds?
The US Treasury publishes a schedule of all auctions. For the April 18 TIPS auction, the announcement occurs on April 11 and settlement date will be April 30.
by Artsdoctor
Tue Mar 19, 2024 8:44 am
Forum: Personal Investments
Topic: Looking for info/advice from Californians investing with an HSA
Replies: 52
Views: 5728

Re: Looking for info/advice from Californians investing with an HSA

^ Certainly you can do that. Remember that it requires a bit of bookkeeping: you'll declare the capital gains as income on your state tax return, as well as any dividends from the fund/ETF. If you buy the fund back, you'll be selling eventually and that will create another taxable event (either a capital gain or a capital loss). I don't find those things a problem at all since I'm used to the CA state tax form but some find the bookkeeping bothersome. With Fidelity, you do have a lot of options since you can do most things that will fit your investment needs without any fees. I'd hate to give that account up.
by Artsdoctor
Mon Mar 18, 2024 6:08 pm
Forum: Personal Investments
Topic: Can TIPS in a taxable account make sense?
Replies: 22
Views: 2688

Re: Can TIPS in a taxable account make sense?

Most professional financial advisors will tell you to hold TIPS in your tax-deferred accounts. Nonetheless, there are some tax-savvy investors who have no problems with TIPS in taxable accounts.

Before you do that however,, make sure that you understand the tax consequences. If you don't fully understand how TIPS work, don't do it. If you don't understand OID and phantom income, don't do it.

If you want to keep things as simple as possible, consider taking the taxable bond funds in your tax-deferred accounts and purchasing an equivalent sum of munis in your taxable account. You'd then free up some space in your tax-deferred account to buy TIPS. There are many ways to handle it although I'd argue for putting a premium on simplicity.
by Artsdoctor
Mon Mar 18, 2024 3:57 pm
Forum: Personal Finance (Not Investing)
Topic: Medicare: Getting Part A and D only
Replies: 89
Views: 4989

Re: Medicare: Getting Part A and D only

gunny2 wrote: Sun Mar 17, 2024 8:15 pm Thanks for the replies. huh...I guess I always figured if you have to go to the hospital for something (eg chemo etc), it's Part A.

Being a vet who'll get Tricare for Life (and services at any base), I still wonder if it's not worth considering.
You really need to look into what your benefits are for Tricare For Life. Tricare and TFL are two different things. TFL is meant as a Medicare supplement.
by Artsdoctor
Mon Mar 18, 2024 10:12 am
Forum: Personal Finance (Not Investing)
Topic: Medicare: Getting Part A and D only
Replies: 89
Views: 4989

Re: Medicare: Getting Part A and D only

gunny2 wrote: Sun Mar 17, 2024 8:15 pm Thanks for the replies. huh...I guess I always figured if you have to go to the hospital for something (eg chemo etc), it's Part A.

Being a vet who'll get Tricare for Life (and services at any base), I still wonder if it's not worth considering.
There's a terrific book called "Medicare for Dummies." It covers a lot of ground and will be more than you need, but there is a section for federal employees and Tricare recipients.

These governmental plans are pretty unique, so just make sure that when getting advice from people that you understand most people won't be all that familiar with the federal benefits programs.
by Artsdoctor
Mon Mar 18, 2024 10:07 am
Forum: Investing - Theory, News & General
Topic: Taxation of Treasury bills, notes and bonds
Replies: 1078
Views: 157279

Re: Taxation of Treasury bills, notes and bonds

This has been an invaluable thread on multiple levels. I'm probably the last to realize this, but it's become apparent that a lot of people are having more difficulty in software data entry than actually understanding the "taxation of treasury bills, notes and bonds." As more and more people do their own taxes and rely solely on tax software, falling back to simplicity may be the best option for many people. We can offer insights as to how T-notes might be purchased and sold on the secondary market as well as how such transactions might be taxed, but I'd caution recommending doing so for most investors in taxable accounts. Teaching investors how investments are taxed is sometimes challenging enough; teaching them how to enter comp...