Search found 324 matches

by HouseStark
Tue Apr 01, 2014 10:01 am
Forum: Personal Finance (Not Investing)
Topic: Paying taxes due to IRS with multiple credit cards
Replies: 5
Views: 2170

Re: Paying taxes due to IRS with multiple credit cards

Have you considered that the fees for using a credit card to pay and the interest charges on those credit card balances may exceed what the IRS would charge you for late payment penalties and interest? Why don't either pay what you can as an extension payment and pay the balance when able, or file and request a payment plan? Look up payment plans at IRS.gov and learn the implications and cost.
by HouseStark
Thu Mar 13, 2014 9:51 pm
Forum: Personal Investments
Topic: Advise on selling taxable mutual funds
Replies: 2
Views: 571

Re: Advise on selling taxable mutual funds

There are many potential factors beyond capital gains rates that could possibly have an impact in determining the actual effective tax rate on the gains you would realize from selling all or some of those shares. Among them are the phase-out of itemized deductions, the phase-out of personal exemptions, the phase-out of other AGI-limited tax deductions or credits, the taxation on Social Security income, and the new net investment income tax. You would have to do a detailed tax projection to determine the impact of different levels of capital gains. That's how you avoid any surprises. You should have stopped any automatic reinvestment of distributions in those funds. Also, keep in mind that it is not an all or nothing proposition. You could h...
by HouseStark
Sun Mar 09, 2014 1:53 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard Brokerage Corrected Statements and Turbotax
Replies: 6
Views: 1087

Re: Vanguard Brokerage Corrected Statements and Turbotax

LifeIsGood wrote:Thanks for the info. OUCH! I guess the early bird get's the shaft. If I were to leave everything as is and not file an amended return, wouldn't IRS catch the discrepancy on my return and just refund the difference?
The IRS will not correct that type of error on their own. The IRS will not correct for over-reporting of income, since they cannot be sure you are reporting income for which they have not received information returns. The IRS will usually correct math errors and tax calculation errors. They will also adjust refunds for an under statement for estimated taxes paid, such as when someone forgets to include all payments of estimated taxes paid.

To correct for your type of error, an amended return is in order.
by HouseStark
Thu Mar 06, 2014 1:23 pm
Forum: Personal Finance (Not Investing)
Topic: Minimizing tax liability on home sale/transfer
Replies: 4
Views: 597

Re: Minimizing tax liability on home sale/transfer

I agree that the taxable gain may be less than anticipated when factoring in the main home gains exclusion. If a house has been owned for that long it would seem likely there were some capital improvements over that period which could be added to the basis. It would be worth compiling that information to determine its implications on the gain. Also, selling expenses will reduce the taxable gain. Using 5% of a $700,000 selling price as expenses would give a reduction of $35,000 in gain.
by HouseStark
Tue Mar 04, 2014 1:07 pm
Forum: Personal Finance (Not Investing)
Topic: Form 8960, NIIT, investment expenses
Replies: 7
Views: 1272

Re: Form 8960, NIIT, investment expenses

Only your Schedule E net income from a rental home would flow to the Form 8960 as investment income. That net income would already have had the applicable real estate taxes deducted to have arrived at that net income.
Keep in mind that a vacation home that has both rental income and personal use could be treated differently from a regular full-time rental property and is subject to rules that may limit the deductibility of some expenses. You should be aware of those rules. IRS Pub 527, available online, is a good source to get informed.
by HouseStark
Mon Mar 03, 2014 12:51 pm
Forum: Personal Finance (Not Investing)
Topic: Curious outcome, donations and cost basis, 8000%marginal rat
Replies: 4
Views: 597

Re: Curious outcome, donations and cost basis, 8000%marginal

Is the donated asset properly categorized as a long-term capital gain property? There is a limit on the amount of deduction that can be taken of 30% of AGI. It doesn't make sense to me how that would cause such a leap, but maybe it has something to do with it.
by HouseStark
Mon Mar 03, 2014 12:44 pm
Forum: Personal Finance (Not Investing)
Topic: Timing between HSA contributions and withdrawals
Replies: 3
Views: 384

Re: Timing between HSA contributions and withdrawals

Assuming you have eligibility to contribute that amount to your HSA, there is no issue on timing of contribution and distribution for an expense incurred after you opened your HSA.
by HouseStark
Sun Mar 02, 2014 4:32 pm
Forum: Personal Finance (Not Investing)
Topic: Paying IRS taxes with a credit card when e-filing
Replies: 7
Views: 1090

Re: Paying IRS taxes with a credit card when e-filing

You can pay the balance due on your 1040 return any way that is permitted, including going to another payment provider other than the one TT uses.
by HouseStark
Sun Mar 02, 2014 1:11 pm
Forum: Personal Finance (Not Investing)
Topic: Help with filling out form 8889 (HSA Contributions)
Replies: 4
Views: 3591

Re: Help with filling out form 8889 (HSA Contributions)

Your questions are all inquiring about inputs to TurboTax and I can't help you there, but I can tell you what to look for on the output side, that is the actual Forms 8889. First, there will be two forms, one for you and one for your wife. Your form would indicate family coverage on line 1 and hers would indicate self-only. Neither form should have any amount on line 2 for HSA contributions. The only HSA contributions should appear on line 9 for employer contributions. Since, by your description your accounting of the total HSA contributions agrees with the amounts reported on the W-2s box 12 under code W, there should be no issue with this. Neither form should have any amount on line 13 for HSA deduction, since all contributions were by th...
by HouseStark
Sun Mar 02, 2014 12:22 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Question: Tuition reimbursement and standard deductions
Replies: 2
Views: 507

Re: Tax Question: Tuition reimbursement and standard deduct

I second that reply. As a general rule for any tax benefit based on an expense, if you are reimbursed for that expense and that reimbursement is non-taxable, then your out-of-pocket expense is zero and you cannot claim any tax benefit since you have no expense.
by HouseStark
Sat Mar 01, 2014 6:21 pm
Forum: Personal Finance (Not Investing)
Topic: Pay Stub question- HSA
Replies: 7
Views: 5208

Re: Pay Stub question- HSA

My Box 12 had contributions made by salary deductions. At the end of the year I was $200 short of the limit, so I contributed that directly and took it as a deduction. Turbotax kept including the amount in Box 12 as part of my taxable income, so they were saying that I owed like $800 while TaxAct said I was due a $400 refund. They also kept trying to force me to pay for the Deluxe version, so maybe if I did that they would have corrected it, but treating it incorrectly in the first place takes away all confidence I have in their product so I just went with TaxAct. edited to correct: Box 12 only listed my contributions by salary deductions. Premium pass through contributions weren't listed anywhere. Without knowing the details of the operat...
by HouseStark
Fri Feb 28, 2014 7:44 pm
Forum: Personal Finance (Not Investing)
Topic: HUD-1 and filing taxes
Replies: 16
Views: 6941

Re: HUD-1 and filing taxes

This is a recovery from taxes paid in 2012. Does this mean I have to file an amended return for 2012? No, you do not need to file an amended return for 2012, at least not for that reason. But who knows, maybe you messed up some other way? Just ribbing ya. When you receive a refund in 2013 of 2012 state income taxes you paid and deducted on your 2012 federal return, that is a common variety of a recovery, though most people don't think of it that way. What it means is that that state tax refund may, or may not, be reportable as income on your 2013 federal tax return. It's pretty much the same thing for a recovery of property taxes, but admittedly many tax pros, including myself, would simply include that as an reduction of 2013 property tax...
by HouseStark
Fri Feb 28, 2014 7:33 pm
Forum: Personal Finance (Not Investing)
Topic: Pay Stub question- HSA
Replies: 7
Views: 5208

Re: Pay Stub question- HSA

If an amount for an HSA contribution appears on a W-2, it should be listed in Box 12 with a code of W. Any amount in Box 12 is not going to be a deduction on the tax return because it is either 1) an employer contribution without employee salary reduction, or 2) it is an employee contribution by salary reduction. Both of those types of contributions are included in the amount for code W. The amount of employee contribution by salary reduction would not be a deduction for an HSA contribution since that amount would be excluded from the amount of taxable income in the W-2 Box 1 (plus excluded from Boxes 3 & 5 for Social Security and Medicare). In other words, it's a pre-tax contribution, like a regular 401(k) employee contribution, so no ...
by HouseStark
Fri Feb 28, 2014 7:19 pm
Forum: Personal Finance (Not Investing)
Topic: Stock donation to charity
Replies: 6
Views: 897

Re: Stock donation to charity

If you arrive at the conclusion to take this deduction for 2014, I would work with the donation recipient to make sure your donation acknowledgment agrees with that period. I agree that the transfer date of the stock would seem to be the governing date of the donation because that is when the value of the donation is determined.
by HouseStark
Fri Feb 28, 2014 7:10 pm
Forum: Personal Investments
Topic: Options & Taxes
Replies: 5
Views: 688

Re: Options & Taxes

berg wrote:As part of my options strategy, I'm trying to consider taxes. Wondering if my math here makes sense.

I'm considering selling a portion of stock that will keep me in the 33% tax bracket, but not put me much higher.
You say "selling a portion of stock", but your description refers to options, so this is ambiguous. Are you talking about selling stock you already own, or about exercising options by doing a "cashless" exercise? Or exercising options to hold shares to sell at some later point? These are different things tax-wise.
by HouseStark
Fri Feb 28, 2014 6:57 pm
Forum: Personal Finance (Not Investing)
Topic: HUD-1 and filing taxes
Replies: 16
Views: 6941

Re: HUD-1 and filing taxes

If part of the RE taxes you paid in the current tax year, meaning 2013, were credited back to you on the closing statement for a 2013 sale, then that is simply a reduction of RE taxes that can be deducted for 2013, not a recovery. For example, if you paid $2000 during 2013 for the first six months of RE taxes, but then were credited with $500 from the buyer on the closing statement for a 2013 sale because the sale took place before the end of the six month period, that would give you net taxes paid of $1500 to deduct on your 2013 Schedule A. I'm repeating the date to emphasize these events are all occurring in the same year. When the tax payment was deducted on a previous year's return, that would seem to be a recovery.
by HouseStark
Tue Feb 25, 2014 1:39 pm
Forum: Investing - Theory, News & General
Topic: Good article on not using a FA that charges a high AUM %
Replies: 8
Views: 1438

Re: Good article on not using a CFP

This article is not about using the services of a CFP. It's about how financial advisers who charge a fee based on Assets Under Management are not worth what they charge and the author postulates how that fee model will change. Most such advisers are acting primarily as portfolio managers, not as general financial planners, even if they have CFP after their names. Financial planning is a lot more than managing a portfolio. It also addresses retirement planning, estate planning, risk planning and estate planning, in addition to actual investment management and planning. Those services are not what the so-called financial advisors at the big firms mentioned are usually doing. They're collecting those 1-2% annual fees for managing a portfolio,...
by HouseStark
Tue Feb 25, 2014 1:05 pm
Forum: Personal Finance (Not Investing)
Topic: Fixing 8606 error, understanding IRA basis
Replies: 4
Views: 693

Re: Fixing 8606 error, understanding IRA basis

As I studied the form, it looks like the appreciation on the after-tax contributions are not taxed as I make distributions. The multiplier created by the ratio between pre and after tax bases is used to determine the taxable portion of the distributions (conversions). It seems like this calculation subtracts the after tax contribution basis and appreciation from taxable income. No, that's not what it does. It is ratably allocating the non-taxable basis portion of the IRA value against the amount of the distribution. Look at the form and then see what would be the difference if your IRA had appreciated to a higher value. The result would be that the non-taxable exclusion would be smaller. It's not excluding the earnings from the contributio...
by HouseStark
Tue Feb 25, 2014 12:59 pm
Forum: Personal Finance (Not Investing)
Topic: Fixing 8606 error, understanding IRA basis
Replies: 4
Views: 693

Re: Fixing 8606 error, understanding IRA basis

To correct the return, you would file a 2012 1040X amended return, and with that return attach the corrected Form 8606 and any other part of the original tax return that is changed by the amended return. If a form or schedule is not changed by the amended return, then it is not included with the 1040X.
by HouseStark
Sun Feb 23, 2014 4:14 pm
Forum: Personal Finance (Not Investing)
Topic: Can I contribute to an IRA while I have a 401K?
Replies: 5
Views: 843

Re: Can I contribute to an IRA while I have a 401K?

You didn't mention whether you have any other Traditional IRAs other than the one you opened with your $6500 contribution. That would make a difference. The objective of a back door Roth contribution, is not to get an IRA deduction for the contribution, but to make a Roth contribution by getting around the income limitation rules for Roth contributions.
by HouseStark
Sun Feb 23, 2014 4:10 pm
Forum: Personal Finance (Not Investing)
Topic: Can I contribute to an IRA while I have a 401K?
Replies: 5
Views: 843

Re: Can I contribute to an IRA while I have a 401K?

Yes, you are eligible to contribute to a Traditional IRA, if you have the earned income. You may not be eligible to deduct your IRA contribution. That is a different thing. But, if your intent was to do a backdoor Roth, then you don't care about deducting your TIRA contribution, anyway.
by HouseStark
Sun Feb 23, 2014 4:05 pm
Forum: Personal Investments
Topic: Help With Maxing Out Company 401(k) Match
Replies: 9
Views: 846

Re: Contributions to 401(k)

Would a different way of saying that be the company matches $1 for $1 on the first 1% and 50 cents on the $1 for the next 5%? What's 1% plus 5%? That means for a 6% deferral you get a match of 3.5%, or perhaps more enticing, a "return" of 58.3%. Think of it as for your $100 contribution, the company gives you $58. That is for your first 6% deferral contribution.
by HouseStark
Sat Feb 22, 2014 11:11 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth is complicated for taxes
Replies: 18
Views: 4573

Re: Backdoor Roth is complicated for taxes

It shouldn't be that complicated. I'm wondering if it actually got done in the correct way. If you supposedly "fixed" the federal return by doing something with the "Deductions section" that doesn't sound right to me. There should be nothing going on with deductions that has any relationship to a Roth conversion. I don't know MA income tax, but I would think if you had it reflected correctly on your federal return, there would be nothing more to correct on the MA return. I'm trying to give you a heads up on taking another look at this, but I don't use TurboTax, so I can't give specific guidance there. If you make the entries correctly and did a "true" backdoor Roth, meaning that you had no other pre-tax IRA bal...
by HouseStark
Sat Feb 22, 2014 7:14 pm
Forum: Personal Investments
Topic: Form 8606 Info
Replies: 20
Views: 2227

Re: Form 8606 Info

Filing a current year Form 8606 may not be required in years when there are no additions to IRA basis, or any distributions that would require it, but I think it's still a darn good idea to generate one, whether or not it is included in the return. How many threads pop up here on BH from people that have incorrectly carried forward IRA basis from prior years? Of course, there are also many threads about what to do when one forgot to report the non-deductible contributions in the first place. The point is, by carrying the basis information forward every year on a Form 8606 the most recent return has all the basis information that may be needed in the future. That way if one switches tax software and the data doesn't import, or goes to anothe...
by HouseStark
Sat Feb 22, 2014 6:50 pm
Forum: Personal Finance (Not Investing)
Topic: Help Reporting RSUs on Taxes
Replies: 4
Views: 1805

Re: Help Reporting RSUs on Taxes

You don't mention whether you have a state income tax, but that would likely be subject to amendment which would also produce a refund.
by HouseStark
Sat Feb 22, 2014 6:47 pm
Forum: Personal Finance (Not Investing)
Topic: Help Reporting RSUs on Taxes
Replies: 4
Views: 1805

Re: Help Reporting RSUs on Taxes

Hi, I have a question on what I'm supposed to do with RSUs on my taxes. In 2012, I sold some RSUs. When I did my taxes, ETrade had nothing in the "Cost Basis" column. That made me think, "Oh. These shares were *given* to me, so the cost is zero." So, I put that as my cost basis. After looking at my W2 a bit more, I'm pretty sure that the RSUs showed up on my W2 and that I was taxed for them there. That means that I already paid taxes for my RSUs and that they are already considered income. That means that my cost basis is more than zero. Is this how RSUs are normally done? Why would ETrade report my cost basis as zero? Am I supposed to figure out my own cost basis when dealing with RSUs? I could by looking at how much I...
by HouseStark
Fri Feb 21, 2014 1:37 pm
Forum: Personal Finance (Not Investing)
Topic: Do i need a new cpa?
Replies: 10
Views: 1651

Re: Do i need a new cpa?

Depending upon your area, many CPAs may not have experience with farming or timber sales. Those are not generally encountered situations in many practices. If you want some more satisfaction then finding a practitioner who deals with those situations would be recommended. You also have to keep in mind that the current time is probably the absolute worst time of the year to engage a new tax practitioner. One option is to tell your CPA you will want to file an extension and just want to make sure you are covered at the minimum for the safe harbors to avoid penalties on underpayment of estimated taxes, but interest would accrue on unpaid balances due, or at best, to pay your projected total liability by April 15th. Then you could seek out a ne...
by HouseStark
Thu Feb 13, 2014 9:02 am
Forum: Personal Finance (Not Investing)
Topic: Energy Efficiency Tax Credits are Back
Replies: 4
Views: 1208

Re: Energy Efficiency Tax Credits are Back

Dolomite wrote:Just to clarify a point about IRS Residential Energy Credits (Form 5695):
The previous lifetime limit was $1500 prior to Dec 31, 2011, but the limit is now $500.
I used the $1500 lifetime limit in my 2010 filing, so I cannot use the current $500 credit in my 2013 filing, correct?
Thanks to any responders.
Correct.
by HouseStark
Mon Feb 10, 2014 10:23 am
Forum: Personal Finance (Not Investing)
Topic: Realized Gain from Tax Exempt Funds
Replies: 7
Views: 927

Re: Realized Gain from Tax Exempt Funds

The OP could have miscalculated the actual gain, if increased basis from reinvested distributions was not taken into account, so the $1200 could not be correct. If it comes off the 1099-B, then it most likely is correct.

Also, since all shares of the fund were sold, total gain is the same no matter what basis method is used, assuming there were no previous shares. The only effect that different basis methods could have would the split of the gain between short and long term, the total gain could not change. The difference would likely be minimal, in any case.
by HouseStark
Mon Feb 10, 2014 10:04 am
Forum: Personal Finance (Not Investing)
Topic: Realized Gain from Tax Exempt Funds
Replies: 7
Views: 927

Re: Realized Gain from Tax Exempt Funds

Brokers and fund companies are generally required to report the basis of fund shares acquired beginning Jan. 1, 2012. For common stock shares basis reporting is generally required for shares acquired beginning Jan. 1, 2011. I guess that is "the story" they are obligated to tell. It is not a very entertaining story. Shares for which reporting is required are called "covered" shares, likewise shares for which reporting is not required are called "non-covered" shares. If you purchased the fund beginning in five years ago, then some or all of the shares you sold in 2013 are non-covered shares. If you were having distributions from the fund reinvested into the fund, or otherwise purchased some shares after 1/1/2012,...
by HouseStark
Fri Feb 07, 2014 6:50 pm
Forum: Personal Finance (Not Investing)
Topic: Help with EIN, SSN confusion on W2
Replies: 3
Views: 600

Re: Help with EIN, SSN confusion on W2

I would assume that you would like to have your W-2 earnings credited to your Social Security earnings record to increase your future Social Security retirement income. That's not happening if your W-2 is reporting your earnings by using your EIN. It doesn't happen with your income tax return, it happens when your W-2 is filed with the Social Security Administration. I also think you would want to have your W-2 income tax withholdings credited to your income account. That also would not seem to be occurring, according to what you describe. How that has not caused any issues with income taxes if it has occurred over multiple years would be a big question to me. I'm baffled why you would let this issue persist over years, according to your de...
by HouseStark
Thu Feb 06, 2014 3:21 pm
Forum: Personal Investments
Topic: Help with Roth IRA & Retirement Strategies
Replies: 12
Views: 1793

Re: Help with Roth IRA & Retirement Strategies

Since your prior TIRA contributions were non-deductible, then you can determine your contribution basis for your and your wife's TIRAs. That piece of information is needed to determine either 1) the tax implication of any conversions of the existing TIRA balance to a Roth without additional non-deductible contributions, or 2) the tax implication of new non-deductible TIRA contributions for purposes of converting to Roth, that is, a back-door Roth contribution. Just knowing the balance of the TIRAs does not provide that information, since it is lacking information on the amount of gain (earnings) in those TIRAs that is subject to tax on conversion.
by HouseStark
Thu Feb 06, 2014 10:32 am
Forum: Personal Investments
Topic: Help with Roth IRA & Retirement Strategies
Replies: 12
Views: 1793

Re: Help with Roth IRA & Retirement Strategies

Here is how our current retirement accounts stack up: His Traditional Non-Deductible IRA: $27,569 Her Traditional Non-Deductible IRA: $35,125 I would welcome thoughts on whether we should even be considered a Back door ROTH, costs associated to it we should consider or whether we continue with just 401k, trad. nondeductible IRA and brokerage account contributions. Thank you Dylan A quibbling note: there is no such thing as a "non-deductible IRA", only non-deductible IRA contributions , as you noted also. Your and your wife's Trad IRAs may have been funded with non-deductible contributions, either entirely or in part. That means those TIRAs have basis, perhaps more clearly understood as contribution basis. The contribution basis i...
by HouseStark
Thu Feb 06, 2014 10:18 am
Forum: Personal Investments
Topic: If I contribute to IRA now, how soon do I get the tax form?
Replies: 14
Views: 1185

Re: If I contribute to IRA now, how soon do I get the tax fo

A 1099-R is used to report distributions from an IRA, among other purposes. If you're not taking a distribution (withdrawal) from an IRA, then there will be no 1099-R. So don't wait for one.
by HouseStark
Thu Feb 06, 2014 9:49 am
Forum: Personal Investments
Topic: If I contribute to IRA now, how soon do I get the tax form?
Replies: 14
Views: 1185

Re: If I contribute to IRA now, how soon do I get the tax fo

If I contribute to IRA for 2013 now, how soon do I get the tax form, such as 5498, 1099-R etc? Thanks. Contributions to IRAs are reported on form 5498. Custodians are not required to issue form 5498 until May, for contributions of the previous calendar year, which makes sense since contributions can be made until April 15. The owner of the IRA does not need to have received form 5498 for any tax filing purposes. As owner, you know, and can confirm via a statement or online, how much you contributed. You can, and should confirm, that any contributions made in the Jan 1 to Apr 15 timeframe were credited to the desired tax year. That is all the information needed to complete any tax reporting for Traditional IRA contributions, whether deducti...
by HouseStark
Tue Feb 04, 2014 10:47 am
Forum: Personal Finance (Not Investing)
Topic: HSA and tax reporting (HDHP premium)
Replies: 3
Views: 1141

Re: HSA and tax reporting (HDHP premium)

W-2 code W should report HSA contributions, both by the company and by the employee via payroll deduction (Sec 125). It absolutely should not report health insurance premiums paid, either the company or the employee share. The OP has it right. If it's not an HSA contribution, meaning it's not going into the employee's HSA, how can it be considered an HSA contribution? Who does the company payroll? Is this some smallish company that does its own payroll? I can't believe any third-party payroll provider would make such an obvious error. The OP can't be the only one in the company with this situation. You need to talk to someone in the company who cares about getting this right. If the person responsible for payroll is defensive about being in...
by HouseStark
Tue Feb 04, 2014 10:01 am
Forum: Personal Investments
Topic: Prices for mutual funds. What do I pay?
Replies: 33
Views: 3269

Re: Prices for mutual funds. What do I pay?

The result is that when buying mutual fund shares, whether Vanguard or other fund companies, you do not know for certain what price per share you will be paying, since your purchase order will not be executed until after the close of the current or the next trading day, whichever is applicable, as already described. If the previous day's closing net asset value (NAV) was the pre-determined purchase, or sale, price, investors could place big orders knowing which way the market had moved and hence how the NAV of fund shares would move after the close of trading. That would a form of arbitrage, giving them an advantage at the expense of current fund shareholders.
by HouseStark
Mon Feb 03, 2014 8:58 am
Forum: Personal Investments
Topic: Backdoor Roth IRA, what to do with the 3 cent interest
Replies: 4
Views: 1701

Re: Backdoor Roth IRA, what to do with the 3 cent interest

Why would you be paying interest on anything in your IRA? Anyway, yes, you should convert the entire balance of your TIRA to your Roth, including the three cents of earnings. Then you should ignore the three cents in your tax reporting of the conversion, because it's 3 cents and the IRS will ignore it. Therefore, assuming you have no other TIRA balances, following the conversion you be reporting zero taxable income from the conversion.

That's my two cents.
by HouseStark
Sun Feb 02, 2014 10:56 am
Forum: Personal Finance (Not Investing)
Topic: Roth TSP reduces tax refund
Replies: 21
Views: 2428

Re: Roth TSP reduces tax refund

The responses so far may be educated guesses, but if the OP wants an informed response, then provide a summary of 1040 line amounts without the Roth TSP entry and then with TSP entry. That is going to provide an immediate indication of what is changing and most likely lead to answering why. Without that information, I'll go with operator error on how the information is being entered.
by HouseStark
Tue Jan 28, 2014 9:18 am
Forum: Personal Finance (Not Investing)
Topic: Have you ever been audited?
Replies: 8
Views: 1622

Re: Have you ever been audited?

A camera lens would be categorized as equipment, not supplies. Supplies are basically things that get used up, like toner, paper and other consumables. Equipment is a type of depreciable asset. A camera lens has a usable life of years. It is not used up or worn out by short term use. All photographic equipment is also specifically described by the IRS as a type of "listed property". Listed property are things that typically have general use outside of business use. The most common type of listed property are vehicles. Other types are computers, and equipment "used for entertainment, recreation or amusement, including photographic, phonographic, communication and video equipment". As you can see, these are the types of th...
by HouseStark
Fri Jan 24, 2014 4:52 pm
Forum: Personal Finance (Not Investing)
Topic: New Home Owner - Tax Questions
Replies: 48
Views: 4117

Re: New Home Owner - Tax Questions

Damn math! Gets me every time.
by HouseStark
Fri Jan 24, 2014 3:59 pm
Forum: Personal Finance (Not Investing)
Topic: New Home Owner - Tax Questions
Replies: 48
Views: 4117

Re: New Home Owner - Tax Questions

primetime wrote: So regardless of what I put in escrow, it's $252.63 per month and $252.63*5= $1263.17
Sounds, right. I think it's a coincidence that they also collect five months of reserves.
by HouseStark
Fri Jan 24, 2014 3:39 pm
Forum: Personal Finance (Not Investing)
Topic: New Home Owner - Tax Questions
Replies: 48
Views: 4117

Re: New Home Owner - Tax Questions

My mistake, yes I meant RE taxes. On the settlement, it states that county property taxes from 1/1/13 to 8/28/13 was $1997.67. This is under "adjustments for items unpaid by seller" Then under "reserves deposited by lender" (my employer did not pay for the taxes) it states $1265.90 Taxes are $253.18 per month @ 5 months. So how much can I deduct? Okay, the closing statement says the RE taxes to date were UNPAID by the seller. That means they were charged against the seller's proceeds at closing. Do you not know what your annual RE taxes are for your new home? You really ought to know that sort of thing. Is there a county website where you can access such information? The "reserves deposited by lender" refers t...
by HouseStark
Fri Jan 24, 2014 3:11 pm
Forum: Personal Finance (Not Investing)
Topic: New Home Owner - Tax Questions
Replies: 48
Views: 4117

Re: New Home Owner - Tax Questions

My 1098 reads $2692.79 in box 1, "Mortage Interest recieved from Payer/Borrower" It has $1884.00 in box 2, "Points paid on purchase of principle residence" In box 5, it says $0.00 for "real estate taxes" No mention of personal property taxes paid on this form. I contacted my county tax office and property taxes were due in Feb and July of 2013. I closed on my home in Aug of 2013. At closing, I put in 5 months worth of taxes into escrow. This is reflected in box 1005 on my HUD-1 statement. 1. For 2013, even though I put money in escrow, since the tax payments were made by the previous owner, I don't put in anything for personal property taxes paid for 2013, correct? I think you mean real estate taxes, not perso...
by HouseStark
Fri Jan 24, 2014 11:33 am
Forum: Personal Finance (Not Investing)
Topic: IRS Form 941 - Income Withholding [S Corp owner]
Replies: 8
Views: 3167

Re: IRS Form 941 - Income Withholding [S Corp owner]

I don't know of any rule that would prevent doing a payroll in only the final quarter of the year. I suppose some S-corps do such a thing for cash flow management or uncertainties. As long as the 941s are correct I don't know that it would raise any issues. If a business is ongoing with some stability I wouldn't think it would be an advisable thing to do without good reason.
by HouseStark
Fri Jan 24, 2014 10:43 am
Forum: Personal Finance (Not Investing)
Topic: IRS Form 941 - Income Withholding [S Corp owner]
Replies: 8
Views: 3167

Re: IRS Form 941 - Income Withholding

I'm reasonably certain I'm on the right track. I'd confess that my OP may not have been eloquent. The S Corp cut me a check in 2013 Q4. This was the first quarter in which I received an income. I paid myself only once in that quarter. The withholding from that paycheck will be due via EFTPS by January 31, and I'll need to file form 941 to reflect the withholding. Everything reconciles. In a round about way, I was simply asking: For income taxes owed on the distribution portion of my income, should the SCorp withhold those, or should I as the employee instead pay estimated taxes? My sense is that either is a legitimate route. Either is a legitimate route. Withholding has the advantage of being treated, for timing purposes, as if it was with...
by HouseStark
Fri Jan 24, 2014 10:04 am
Forum: Personal Finance (Not Investing)
Topic: IRS Form 941 - Income Withholding [S Corp owner]
Replies: 8
Views: 3167

Re: IRS Form 941 - Income Withholding

I'm full owner of an LLC filing as an S Corp for tax purposes. I'm due to file my first quarterly 941 by the end of the month. Looking for a little help from those who've done it. Everything on 941 appears to apply to W-2 wages, and that makes sense - it's my understanding that any distributions (non-W2 income) will be reported on schedule k-1, instead. I will have substantial W2 wages, as well as distributions, for the 4th quarter of 2013. Is now my only chance to withhold income taxes (specifically, on line 3)? In other words, should line 3 reflect the income taxes I anticipate owing from salary and distributions, combined? Simple example: I'm in the 25% bracket - assume no deductions or credits. I made $100k. I paid myself half in wages...
by HouseStark
Fri Jan 24, 2014 9:15 am
Forum: Personal Finance (Not Investing)
Topic: Qualified vs Non-qualified Dividends
Replies: 22
Views: 4781

Re: Qualified vs Non-qualified Dividends

ajcp wrote: Interesting, I didn't realize it was reported like that. Although I don't think that would apply to these two indexes, but good to know in general.
Since one common characteristic of index funds is a much lower turnover ratio, I would expect most such funds are able to avoid short-term capital gains, but I suppose as companies in the index change, short-term trades may be occasionally forced upon them and so would require some gains management, if a goal was for the fund to net out the gains with losses.
by HouseStark
Thu Jan 23, 2014 10:36 pm
Forum: Personal Finance (Not Investing)
Topic: Qualified vs Non-qualified Dividends
Replies: 22
Views: 4781

Re: Qualified vs Non-qualified Dividends

I also got my 1099 from Fidelity and even FUSVX had 1% non-qualified dividends. As livesoft points out, not all dividends are automatically qualified if you hold them for 60 days. They must also be from one of these four companies: 1. A US corporation 2. The corporation is incorporated in a U.S. possession. 3. The corporation is eligible for the benefits of a comprehensive income tax treaty with the United States that the Treasury Department determines is satisfactory for this purpose and that includes an exchange of information program. 4. The corporation does not meet (2) or (3) above, but the stock for which the dividend is paid is readily tradable on an established securities market in the United States. There are additional rules that...