Search found 170 matches

by bkslainte
Wed Dec 30, 2015 1:00 pm
Forum: Personal Investments
Topic: Vanguard Target Retirement 2030 Trust II-Bond interest question
Replies: 2
Views: 582

Re: Vanguard Target Retirement 2030 Trust II-Bond interest question

There is no monthly distribution/monthly dividend paid so no reinvestment.

It is harder to tell with the monthly NAV because there is the stock component which may cause an increase/decrease on a daily basis. I guess I can start taking a much closer look at the end of month NAV and strip out the stock component based on the stock market's change that day.
by bkslainte
Wed Dec 30, 2015 12:10 pm
Forum: Personal Investments
Topic: Vanguard Target Retirement 2030 Trust II-Bond interest question
Replies: 2
Views: 582

Vanguard Target Retirement 2030 Trust II-Bond interest question

Hello,
Vanguard customer service didn't seem to know the answer on this so of course I'm turning to the collective wisdom here.

I hold the Vanguard Target Retirement 2030 Trust II in my Fidelity 401K(sorry could not find a ticker symbol but fund number is 1476). The target fund has an allocation of 18% Total Bond Market II and about 8% Total Intl Bond Indx fund.

How are the bond interest payments paid out in this fund?

I am accustomed to the Vanguard bond funds which pay out a monthly bond distribution. Does this fund calculate the bond interest payments and incorporate this into the daily NAV, monthly NAV???


Thanks in advance,
Brian
by bkslainte
Thu Dec 24, 2015 12:37 pm
Forum: US Chapters
Topic: My Christmas Gift to You
Replies: 71
Views: 11500

Re: My Christmas Gift to You

Taylor,
Thank you very much, always look forward to this Christmas message!!

Thanks,
Brian
by bkslainte
Sat Jul 25, 2015 9:33 am
Forum: Personal Consumer Issues
Topic: Buy copy of wall street journal in San Jose Bay Area
Replies: 11
Views: 2478

Re: Buy copy of wall street journal in San Jose Bay Area

Try this out, it worked for me last year. Free 39 week subscription

http://www.rewardsgold.com/mags/wsj/tgs_wsj_pg4-39.htm

For North San Jose, the Rivermark Starbucks(inside the Safeway) has the WSJ during weekdays, not sure about weekends.
by bkslainte
Mon Dec 29, 2014 10:09 am
Forum: Personal Investments
Topic: 2015 Roth contribution-variable income
Replies: 2
Views: 480

Re: 2015 Roth contribution-variable income

Great, thank you for this. There are no pre-tax IRAs so I should be ok.
by bkslainte
Mon Dec 29, 2014 9:54 am
Forum: Personal Investments
Topic: 2015 Roth contribution-variable income
Replies: 2
Views: 480

2015 Roth contribution-variable income

Hello,
I am a sales rep so income can vary during any given year. However, for 2015, I expect to be over the limits for a ROTH IRA contribution but want to get the money in a Roth as soon as possible.

Should I just do a backdoor Roth IRA contribution in early January?

Thanks,
Brian
by bkslainte
Tue Oct 21, 2014 3:59 pm
Forum: Personal Finance (Not Investing)
Topic: Negotiations with lenders
Replies: 3
Views: 668

Re: Negotiations with lenders

Yes, of course. Just ask them to provide their best pricing. I would also be upfront with them that you are looking at several different lenders.

Also, although rates may be the most important thing to you, you should also consider other factors such as:

Can this lender close on time?
Is the lender responsive when I email or call?

If the rates are very similar, I usually choose the lender who is responsive, easy to work with and who I know can close on time.
by bkslainte
Mon Oct 20, 2014 3:10 pm
Forum: Personal Investments
Topic: Sell bonds to buy real estate?
Replies: 11
Views: 1836

Re: Sell bonds to buy real estate?

I think this is very risky especially if this is your first real estate type deal. I own 10 rental units, starting out 4 years ago. My partner on the deals is a 20 year real estate professional and every time vacant land comes up as an opportunity, he passes and take the opportunity to remind me all the risks of real estate development. However, if you are going to proceed, here are some questions I would consider. How many of these developments has your cousin done in the past? Do his projects come in on time and on budget? Is the undeveloped land in a good area? I would really check out the location because getting stuck with a piece of land in a bad area or location would be the worst scenario. You mention a booming Houston real estate m...
by bkslainte
Fri Sep 12, 2014 11:23 am
Forum: Personal Consumer Issues
Topic: Great deal for new Costco members
Replies: 18
Views: 3943

Re: Great deal for new Costco members

Does anybody have experience with how Costco defines new members?

We currently have an annual membership that will expire in a few weeks. I might consider dropping for a few weeks and then signing up for this deal.
by bkslainte
Thu Sep 11, 2014 3:34 pm
Forum: Personal Finance (Not Investing)
Topic: Rental rate of return
Replies: 17
Views: 2167

Re: Rental rate of return

I would suggest using cap rate to simplify your analysis

Cap rate is net operating income/purchase price($100,000 in your case)
by bkslainte
Wed Sep 10, 2014 4:06 pm
Forum: Personal Consumer Issues
Topic: Visit to SFO Area - Dining
Replies: 14
Views: 1859

Re: Visit to SFO Area - Dining

Go Niners!

La Taqueria: 2889 Mission Street, near 25th, San Francisco

I have never been but it was just ranked the #1 burrito by ESPN's FiveThirtyEight.
by bkslainte
Tue Sep 02, 2014 2:02 pm
Forum: Personal Consumer Issues
Topic: Fantasy football debt owed
Replies: 27
Views: 3982

Re: Fantasy football debt owed

Thanks for all the replies. I hope this board never loses its witty and sarcastic nature. My wife would probably appreciate all the anti-ffl remarks here,ha!

The commissioner(or the gentleman who organizes the league) is an acquaintance. When I asked him about the money a few months ago, he intimated that he might just pay out of pocket. At the time, I thought that was unfair but that was also before this season was cancelled. My major question was whether I should continue to hound him for the award, contact the 3 individuals directly or just drop it.
by bkslainte
Tue Sep 02, 2014 11:42 am
Forum: Personal Consumer Issues
Topic: Fantasy football debt owed
Replies: 27
Views: 3982

Fantasy football debt owed

Hi all, I am reaching out to get the collective wisdom of the always thoughtful and knowledgeable Boglehead crowd. I have belonged to a fantasy football league for the past 6 years. There are 12 members and the league fee is $50. The first place team gets $450 and the second place team gets $150. Most fantasy football leagues require payment upfront or a few weeks in the season. For whatever reason, the fees/awards for this league don't seem to get collected/distributed until the following fantasy football season. In 2013, I placed second and should have received the $150 award but have not received anything yet. Now, it appears that the 2014 season will not happen so I don't see any impetus for the payments to happen. I had emailed the com...
by bkslainte
Fri Aug 22, 2014 3:23 pm
Forum: Personal Investments
Topic: 3.85% medicare tax?
Replies: 6
Views: 1222

Re: 3.85% medicare tax?

You should probably run the numbers through taxcaster to see the overall picture. You are still going to being paying taxes on all your income and dividends/interest. Additionally, you will be paying the additional 3.8% on the dividends/interest.

If someone had no interest or dividends, it would actually be better as they would not get hit with the 3.8% surcharge for that year.
by bkslainte
Tue Aug 12, 2014 7:10 pm
Forum: Personal Investments
Topic: Selling stocks and minimizing taxes
Replies: 16
Views: 1398

Re: Selling stocks and minimizing taxes

Does the current value include any reinvested dividends? If you have not done anything with the ESPP and were reinvesting the dividends, then your cost basis might be higher because you continued to reinvest the dividends.
by bkslainte
Tue Aug 12, 2014 6:46 pm
Forum: Personal Finance (Not Investing)
Topic: Fed Taxes on Sale of Rental/Primary Residence
Replies: 12
Views: 1953

Re: Fed Taxes on Sale of Rental/Primary Residence

Did you take depreciation on the property during the time it was a rental? This depreciation is recaptured and might result in a tax when the property is sold.
by bkslainte
Tue Aug 12, 2014 5:03 pm
Forum: Personal Investments
Topic: Selling stocks and minimizing taxes
Replies: 16
Views: 1398

Re: Selling stocks and minimizing taxes

You should also determine your cost basis for the stocks to get a true idea of your losses/gains. The cost basis is the price which you paid for the stock. If the stock has gone down in value, then you can offset these losses against any gains you have on other ESPP purchases.
by bkslainte
Mon Aug 04, 2014 5:21 pm
Forum: Non-US Investing
Topic: Advice for US newcomer
Replies: 9
Views: 1075

Re: Advice for US newcomer

And, yes, I am already scanning term4sale and accuquote.
Should I take my employer life insurance as well?
I would definitely look into taking the employer life insurance as long as its term life. First, the rates are usually quite competitive with what you will find online. Secondly, for lower levels of insurance such as 3x to 5x your salary, they probably don't require a health exam/physical. For larger amounts through your employer, they might require an examination.
by bkslainte
Mon Jul 21, 2014 5:06 pm
Forum: Personal Consumer Issues
Topic: Will app for biz credit cards impact personal credit score?
Replies: 5
Views: 860

Re: Will app for biz credit cards impact personal credit sco

I have applied for several business cards in the last year under an LLC name. This was simply for the great signup rewards that the business cards offered. The business cards for which I applied required both the LLC EIN and personal SSN. As I understand it, the credit is granted to the individual and credit check was done against my SSN. However, I am not sure if this is for all business cards and I don't know by how many points this affected my credit.
by bkslainte
Thu Jun 26, 2014 3:38 pm
Forum: Personal Finance (Not Investing)
Topic: School me on my rental property understanding..
Replies: 16
Views: 1730

Re: School me on my rental property understanding..

Does this sound right. How much higher is the rate for an investment property vs a primary residence usually? Did I get tricked?
I would say that mortgage rates average .5 points higher for an investment properties so you did not get tricked.


Along with the other feedback provided, I was going to provide this point as well. Investment properties imply risk and you will pay more for it.

Home insurance will be more than primary residence. Mortgage rates will be higher than for primary residences.

The OP probably has an primary residence/owner occupied mortgage with his lender. Could they come after him if they find out its a rental? Possibly but not likely. There are a few bogleheads threads on this already.
by bkslainte
Mon Jun 23, 2014 1:55 pm
Forum: Investing - Theory, News & General
Topic: How common are after-tax in service rollovers?
Replies: 17
Views: 1938

Re: How common are after-tax in service rollovers?

There might not be too much information on this online but you better believe the Bogleheads already have several polls on whether their plans offer this feature :) One of several polls below.

http://www.bogleheads.org/forum/viewtop ... 1&t=104829
by bkslainte
Wed Jun 18, 2014 6:00 pm
Forum: Personal Finance (Not Investing)
Topic: Renegotiating Extra Escrow payments after analysis
Replies: 9
Views: 1065

Re: Renegotiating Extra Escrow payments after analysis

Is escrow mandatory with this loan?

You should ask the lender if you can stop escrow payments and just pay the property taxes(and home insurance if applicable) directly.
by bkslainte
Wed Jun 18, 2014 1:12 pm
Forum: Personal Consumer Issues
Topic: Need help with maps-Sierra Leone
Replies: 1
Views: 365

Need help with maps-Sierra Leone

Hello bogleheads and hopefully amateur cartographers,

I am asking this on behalf of my uncle(don't worry, he is not an oil minister or anything :) ). He currently works in Sierra Leone and is looking for a detailed map of the region. So far, the most detailed map he can locate is from 1960 and there are many new towns in the area or towns that no longer exist. I looked around online(google maps, university pages,etc) but have not found a satisfactory map yet. Most important would be town/city names in the region.

Any ideas on getting a good map for this region? I have the longitude, latitude information.

Are there online services than produce maps in this scenario?


Thanks,
Brian
by bkslainte
Thu Jun 05, 2014 2:24 pm
Forum: Personal Finance (Not Investing)
Topic: tenant advice?
Replies: 46
Views: 4649

Re: tenant advice?

He also has a lot of free time and has a number of court cases (under aliases) that include eviction for not paying rent.
If this is true, this changes my initial thoughts about the situation. I still think you should have a direct conversation with the tenant but if they have this past history then unfortunately, you might need to go the lawyer route.


Also, did this not come up during the background check? Normally, my property management company will screen for this and contact past landlords. This is hindsight of course. Now that you are in this situation, I would be very careful.
by bkslainte
Thu Jun 05, 2014 10:42 am
Forum: Personal Finance (Not Investing)
Topic: tenant advice?
Replies: 46
Views: 4649

Re: tenant advice?

Open friendly direct talks and avoid getting nasty. Ask what you can do to help.
I agree that this would be a good place to start. Plus, its a lot cheaper than getting a lawyer involved and you might resolve this quickly.
by bkslainte
Fri May 30, 2014 3:35 pm
Forum: Personal Finance (Not Investing)
Topic: determining rental price for house?
Replies: 11
Views: 1845

Re: determining rental price for house?

I agree with listing this at $3000(or $2995) if the area comps support that price.

First, you might get someone to rent at the higher price.

Secondly, you might get someone that wants to negotiate down the price and then you have that $100 to close the deal.
by bkslainte
Fri May 30, 2014 12:47 pm
Forum: Personal Finance (Not Investing)
Topic: determining rental price for house?
Replies: 11
Views: 1845

Re: determining rental price for house?

Have you done research on comparable rental listings in the area?

Looking at craigslist ads would give you a ballpark figure on rents in the area.
by bkslainte
Fri May 30, 2014 12:27 pm
Forum: Personal Investments
Topic: Investing with Upstart
Replies: 1
Views: 536

Investing with Upstart

Does anyone have experience investing with Upstart?

They are in the peer to peer lending space and have recently begun offering 3 year loan types.

The rates they offer to investors appears attractive but I assume there are also higher risks of defaults. Are there any other risks involved?
by bkslainte
Tue May 27, 2014 10:17 am
Forum: Personal Finance (Not Investing)
Topic: Dealing with mortgage delay close to closing date
Replies: 7
Views: 1363

Re: Dealing with mortgage delay close to closing date

I agree with others that this is common and most likely will get done. However, you should be proactive about this and stay on top of your lender. Also, I would communicate this with your real estate agent. They can also apply pressure and your agent will need to be ready to communicate any possible delay to the seller/sellers agent. This happened with a transaction of mine and the seller gave us an additional 3 days to close that was written into the contract as an addendum. However, each transaction is different and you never know what is going on in the seller's mind. Do they need this transaction to close because they have purchased another property? Was there a similar property that sold for a higher price and maybe they are looking fo...
by bkslainte
Wed May 21, 2014 10:57 am
Forum: Personal Consumer Issues
Topic: White collar crime book recommendations?
Replies: 21
Views: 2275

Re: White collar crime book recommendations?

Although this covers white collar crime against a business, I enjoyed Rouge Trader that tells the story of Nick Leeson and the trades that led to the collapse of Barings Bank.

Also, you should check out the tv series American Greed on CNBC that covers a lot of the more of white collar crime against individuals/consumers.
by bkslainte
Tue May 20, 2014 11:09 am
Forum: Personal Finance (Not Investing)
Topic: Gift Tax Question
Replies: 14
Views: 3190

Re: Gift Tax Question

Its not related to the gift tax question but wanted to add the following,

Will the home buyer be taking out a mortgage to purchase the house? Any recent large inflows to bank accounts will be scrutinized by the lender. You might want to check with the lender/mortgage broker on the best way to receive this gift/down payment assistance.
by bkslainte
Tue May 13, 2014 4:12 pm
Forum: Investing - Theory, News & General
Topic: Stock Market to Plunge? What a friend said.
Replies: 78
Views: 8707

Re: Stock Market to Plunge? What a friend said.

At first, I was going to reply with more sarcasm.

After thinking about this a bit more and leveraging my inner Bogle, I would refer you to a previous Boglehead post that might be helpful. It looks like you are at Level 2 right now.


http://www.bogleheads.org/forum/viewtop ... 8#p2057008
by bkslainte
Thu May 08, 2014 12:40 pm
Forum: Personal Finance (Not Investing)
Topic: CNBC - [Among millionaires, 4% are doctors]
Replies: 100
Views: 18073

Re: CNBC - 4% doctors are millionaires!!

I think you can find part of the answer in the previous slide
Three-fourths of America's millionaires are retired, and nearly 60 percent are grandparents with an income of less than $150,000 per year.

Just under a quarter of the millionaires surveyed had a household income of more than $200,000.
According to that survey, 60% of millionaires had incomes of $150,000 or less. I think it has been mentioned on this forum(maybe once or twice :)) but high income doesn't always equal high wealth.
by bkslainte
Wed May 07, 2014 4:08 pm
Forum: Personal Finance (Not Investing)
Topic: Must I pay taxes on rental income in this scenario?
Replies: 12
Views: 1460

Re: Must I pay taxes on rental income in this scenario?

I just wanted to bump this up one time to see if anyone else weighs in with an idea

The advice you have been so far is pretty good. What other ideas are you looking for? If you are going to rent a place and receive income on the place then you are going to have to report this as well as any expenses you incurred in renting it out. Outside of that, is sounds like you are looking for ideas that would be illegal.

You might also try reading some more on the topic of being a landlord. The NOLO book series has some good titles including Every Landlord's Tax Deduction Guide
by bkslainte
Wed Apr 23, 2014 4:03 pm
Forum: Personal Finance (Not Investing)
Topic: Is it a bad move to buy a home now?
Replies: 34
Views: 8573

Re: Is it a bad move to buy a home now?

First of all, relax. Take a few deep breaths. The month that you are in escrow will be one of the most up and down/roller coaster type months that you experience. Especially if you are a first time home buyer and are seeing things for the first time. I have seen several of your posts over the past few weeks and I can sense your anxiety with the purchase. Is it the best time to buy a house? Probably not, that was probably a few years ago. Or, 20 years ago. Or, 30 years ago houses were even less than they are today. But I think the most important questions are: Is it the right time for you to buy a house and can you afford it? This means, does a house fit into your lifestyle now and do you plan on being in that house for 10 plus years? Can yo...
by bkslainte
Mon Apr 14, 2014 2:17 pm
Forum: Personal Finance (Not Investing)
Topic: Financing the Purchase of Land
Replies: 6
Views: 1067

Re: Financing the Purchase of Land

I am not a real estate professional but I believe there are agreements like an option. This is how developers going about acquiring an entire city block over the decades.

You might approach the landowner and ask if he is interested in selling. If not, then ask if you can have the first option to buy if the does decide to sell within 10/20 years. You would pay him an annual sum for that option.

These are non standard and you probably want a legal document written up.

Also, if there is a time element involved then there is a risk that you would lose the option after 10/20 years or whatever is decided. But then, you would also have attained your goal of keeping the land vacant for 10/20 years.
by bkslainte
Fri Apr 11, 2014 11:13 am
Forum: Personal Finance (Not Investing)
Topic: Wasting money on rent or buy in California
Replies: 20
Views: 3638

Re: Wasting money on rent or buy in California

Why are you moving to the Bay Area? Is it a permanent move? Do you like the Bay area, have you ever been there before?

I would rent at least for the first year and get an idea of which neighborhoods you like before you purchase. I am a Bay Area resident, there are many neighborhoods and I would at least get familiar with the area before you look to buy.
by bkslainte
Wed Apr 09, 2014 5:02 pm
Forum: Personal Finance (Not Investing)
Topic: Wait for better tenant application or approve the one I have
Replies: 27
Views: 2743

Re: Wait for better tenant application or approve the one I

Why do you want to do a 2 year lease? Is that standard practice in your area/region?

I think 1 year would be standard and then it goes month to month after that. I have had multiple leases with tenants but never asked them to sign up for 2 years.
by bkslainte
Fri Apr 04, 2014 5:12 pm
Forum: Personal Investments
Topic: Contributing to prior year's Roth
Replies: 23
Views: 2796

Re: Contributing to prior year's Roth

The contribution amount is limited to $5,500 per year($6,500 if age 50 and above) Many(especially on this forum) would love to contribute much more.

So that might be the benefit or catch you mention. You only get to contribute $5,500 per year and once the year is gone so is the opportunity to contribute.
by bkslainte
Thu Apr 03, 2014 3:32 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Filing Extension
Replies: 11
Views: 689

Re: Tax Filing Extension

3. I don't worry about getting a refund because I got my refund back in January without filing taxes as I do every year.
Hi livesoft,

Can you explain this, how did you do this?

Thanks,
Brian
by bkslainte
Tue Apr 01, 2014 10:46 am
Forum: Personal Investments
Topic: Advice on what to do with proceeds from second home sale
Replies: 8
Views: 1533

Re: Advice on what to do with proceeds from second home sale

Hello, You seem to be doing very well, we should be asking you for help :) However, here are a few things that would go into my thought process on the situation. Does the net amount of 1,075,000 account for taxes? You don't mention if this includes a gain on the property or not. However, I would make sure you set aside enough for taxes as taxes like the 3.8% ACA surcharge might come into play with this transaction. You are saving 20,000 into taxable each month. That is amazing, congrats on that. What is the plan for this money? You mention that you feel you need to accelerate retirement savings but if this 20,000 per month is earmarked towards retirement savings then I think you are doing very well in this category. Of course, I would advis...
by bkslainte
Mon Mar 31, 2014 1:38 pm
Forum: Personal Investments
Topic: investment property pros and cons?
Replies: 13
Views: 2026

Re: investment property pros and cons?

Just curious, but can you share the reasons for wanting to buy in Berkeley?

As others have mentioned, there are many regulations in Berkeley regarding rental housing. I would find these regulations difficult to navigate if you are a first time property owner. If you intend to turn a profit on the property, you should make sure you are factoring everything into the expense calculations. You should also look into "soft story" issues. This is where there are garages below the units as Berkeley requires you to fix these.

My partner and I looked in to several Berkeley rental properties in 09/10 before deciding to purchase elsewhere in the Bay Area.
by bkslainte
Wed Feb 26, 2014 12:33 pm
Forum: Personal Investments
Topic: Walton 4 Land Investment
Replies: 12
Views: 3363

Re: Walton 4 Land Investment

No experience with them.

However, statements like this
allows them the ability to withstand any economic cycle by structuring the investment for safety
always raise red flags for me.

I would rather that companies came out and said. We will make money in good times and lose money in bad times. Over the couse of xx decades, you can assume this rate of return.

Those comments about withstanding any economic cycle means 2 things to me.

-Either they are not true

-They structure/hedge their investment in such a way that over the long term,you would earn less than if you were in unhedged investments
by bkslainte
Wed Feb 26, 2014 11:07 am
Forum: Personal Finance (Not Investing)
Topic: advice on new budget and possible home purchase
Replies: 8
Views: 1022

Re: advice on new budget and possible home purchase

Hello, Congrats, that is an impressive monthly saving and great incomes. Just a few thoughts/questions. How stable are your jobs at those income levels? Since you only started 6 months ago, are those salaries sent to continue/increase? Why do you want to move and how far away is that location? It seems like you have a very good thing going at the moment with the low monthly mortgage payment,etc. I know you mentioned wanting to be closer to grandparents for babysitting but you don't even had kids yet? Also, are the grandparents onboard with babysitting? What if your wife drops out of the workforce because she wants to stay at home with the kids? The 3.5K everything else budget seems very high. You are already saving quite a bit each month bu...
by bkslainte
Wed Feb 26, 2014 10:52 am
Forum: Personal Consumer Issues
Topic: Layover in Amsterdam
Replies: 23
Views: 1921

Re: Layover in Amsterdam

I've had the pleasure of living in Amsterdam twice in my life.

A few suggestions..

If you are brave and up for it, rent a bike for the 3 days. It is a great way to get around and see the place.

If you like beer, check out Cafe Gollem. A very gezellig(cozy bar) with a great selection of Belgian/Dutch beers.

Like other have mentioned, try the french fries with fritesauce, pinda(peanut sauce) or oorlog sauce(the works)

Other than that, get lost and wander around the canals during the day and at night when they light up the bridges. It is a beautiful city
by bkslainte
Tue Feb 25, 2014 5:57 pm
Forum: Personal Investments
Topic: Reinvesting equity in existing rental property
Replies: 3
Views: 531

Re: Reinvesting equity in existing rental property

Yes, you should be able to get a mortgage on the rental property. How long has it been rented out? Lenders usually like to see 12-18 months of rental history. Also, most lenders offer the best rates at a maximum of 60-70% loan to value rather than 80% as with residential mortgages.
by bkslainte
Wed Feb 19, 2014 4:32 pm
Forum: Investing - Theory, News & General
Topic: $16 Billion for WhatsApp?!?!?!
Replies: 51
Views: 6419

Re: $16 BILLION for WhatsApp?!?!?!

I just saw that and my jaw dropped a bit. I had to go back and check the purchase price for Instagram because I remember being amazed at the purchase price when it happened...but that was peanuts, only 1 billion.
by bkslainte
Wed Feb 19, 2014 1:25 pm
Forum: Personal Investments
Topic: Could use advice investing for the first time
Replies: 19
Views: 1962

Re: Could use advice investing for the first time

Sorry, I hope I didn't confuse you with the 1031 exchange. You should google this to find out if it could apply in your situation. I brought up the 1031 exchange since I thought you were alluding to this type of exchange in a prior post. The 1031 exchange mechanism is mostly used with rental properties. You purchase property 1, it increases in value and then you can exchange property 1 for another property 2(you can check for the exact rules). Even if property 1 has $1 million in capital gains, you do not pay taxes when you sell it becuase you exchanged into property 2. The taxes get deferred though so ultimately you would need to pay when you sell property 2 or you do another exchange into property 3. Ultimately, this just defers the taxes...