Search found 381 matches

by fabdog
Mon Feb 11, 2019 8:00 pm
Forum: Personal Investments
Topic: Implications of rolling a 529 to another state?
Replies: 5
Views: 276

Re: Implications of rolling a 529 to another state?

Check to see if the state where you currently have the 529 "recaptures" any tax benefits you may have received for contributing in the past. I have money in 2 different state plans that is staying there because they will recapture any state tax benefits I got when making the contribution Depending o...
by fabdog
Sun Feb 10, 2019 8:06 pm
Forum: Personal Investments
Topic: Muni Fund- tax exemption change ?
Replies: 4
Views: 455

Re: Muni Fund- tax exemption change ?

yes, the general muni fund is exempt from federal taxes. What the rep may have been trying to communicate that it would not be exempt from state taxes, except to the extent that the bonds in the fund were from your specific state So if you purchased a CA specific MM fund, it would be both federal an...
by fabdog
Sun Feb 10, 2019 11:58 am
Forum: Personal Finance (Not Investing)
Topic: Received 2 W-2s from same employer - what to do
Replies: 9
Views: 788

Re: Received 2 W-2s from same employer - what to do

If you live in a location with city or county taxes that they withheld, then that's what they are showing you on the second W2. Or if you worked in multiple states on assignments it could be that allocating to different states, but since it specifically references local I'd suspect that Your tax sof...
by fabdog
Sun Feb 10, 2019 9:04 am
Forum: Personal Investments
Topic: What Should I Ask The Schwab Rep?
Replies: 14
Views: 994

Re: What Should I Ask The Schwab Rep?

You can certainly ask if they have any current incentives for bringing in new assets. I'd spend some time thinking what you want... do you want them to manage your money? in what arrangement? (Intelligent portfolio or intelligent advisory) Do you just want to invest in their funds, or others? if oth...
by fabdog
Sat Feb 09, 2019 6:44 pm
Forum: Personal Investments
Topic: Is my 1099-R wrong year by bank?
Replies: 3
Views: 212

Re: Is my 1099-R wrong year by bank?

you actually performed the re characterization in 2018, so that's when the 1099 gets issued. Your tax software will take you thru the mechanics of reporting it correctly.

Mike
by fabdog
Sat Feb 09, 2019 6:34 pm
Forum: Personal Finance (Not Investing)
Topic: Gift Form 709
Replies: 10
Views: 566

Re: Gift Form 709

you'd need to file splitting the gift to take advantage of the max $60K ($15K from each of you to each of them)

The form documents that you made the gift and the $140K is taken out of your estate exemption

Mike
by fabdog
Sat Feb 09, 2019 4:12 pm
Forum: Personal Finance (Not Investing)
Topic: Becoming a Franchisee
Replies: 13
Views: 1283

Re: Becoming a Franchisee

I have never been a franchise owner. one good piece of advice I have seen is if you are thinking of buying one, go to work at one of their locations for 2 weeks and see what it's really like. It's not clear to me that buying a franchise expecting to generate a nice side income without running it is ...
by fabdog
Fri Feb 08, 2019 4:22 pm
Forum: Personal Finance (Not Investing)
Topic: Can employer deduct amount from salary as loan
Replies: 11
Views: 1185

Re: Can employer deduct amount from salary as loan

Going to be hard to help with the details at hand... but some thing employers will deduct when you leave (if these apply to you) Relocation assistance if you didn't the full time. This is usually prorated Tuition assistance if you didn't stay the prescribed time (may or may not be prorated) Any adva...
by fabdog
Mon Feb 04, 2019 6:57 am
Forum: Personal Finance (Not Investing)
Topic: Tax question on LTC reporting reimbursements
Replies: 6
Views: 348

Re: Tax question on LTC reporting reimbursements

perhaps the example they use to illustrate will help You are a calendar year taxpayer. Your bank credited, and made available, interest to your bank account in December 2016. You did not withdraw it or enter it into your books until 2017. You must include the amount in gross income for 2016, the yea...
by fabdog
Sun Feb 03, 2019 8:13 pm
Forum: Personal Finance (Not Investing)
Topic: Tax question on LTC reporting reimbursements
Replies: 6
Views: 348

Re: Tax question on LTC reporting reimbursements

The 1099 is clear it's 2018 reimbursement. Let's try an analogy Your mutual fund declares a dividend on 12/31, but because it's credited after market closes, and the first is a holiday you can't access until at least the 2nd, maybe the 3rd. How do you think the IRS would view you attempting to use t...
by fabdog
Sun Feb 03, 2019 5:18 pm
Forum: Personal Finance (Not Investing)
Topic: Qualified Business Income Deduction (Difference between Freetaxusa and TT)
Replies: 4
Views: 339

Re: Qualified Business Income Deduction (Difference between Freetaxusa and TT)

Turbotax. The QBI is supposed to reduced by the deduction for S/E tax, and solo Retirement contributions you made (Solo 401K, SEP, etc) and any health insurance deductions

Mike
by fabdog
Sat Feb 02, 2019 11:57 am
Forum: Personal Finance (Not Investing)
Topic: Did I screw up my first backdoor Roth conversion??
Replies: 12
Views: 782

Re: Did I screw up my first backdoor Roth conversion??

you need to tell the software you had a contribution for 2018. So far all it sees is a 2017 contribution, and 2 years of rollover.

You won't get a 5498 till May, just tell the software about both 2017 and 2018 and it should settle down

Mike
by fabdog
Fri Feb 01, 2019 8:56 am
Forum: Personal Investments
Topic: Stock loss write off
Replies: 5
Views: 180

Re: Stock loss write off

yes. Assuming you sold both positions and realized the gain and the loss Capital gains and losses are offset, and if the final number is a loss, only $3K can be claimed on that year's taxes, and the balance carried forward to use against future capital gains, or if none, deducting $3K/year In your c...
by fabdog
Thu Jan 31, 2019 8:47 am
Forum: Personal Investments
Topic: Keeping Track / Seeing Impact of Fees
Replies: 15
Views: 607

Re: Keeping Track / Seeing Impact of Fees

Not clear what you mean by "hiding" what they are charging. Mgt fees are clearly defined up front so you know what you're buying. Since the fees are deducted daily, do you really want daily entries where an amount is taken out of your fund? Then this would drive reporting each of those as a "transac...
by fabdog
Thu Jan 31, 2019 8:37 am
Forum: Personal Investments
Topic: Keeping Track / Seeing Impact of Fees
Replies: 15
Views: 607

Re: Keeping Track / Seeing Impact of Fees

In a brokerage account where you are being charged an AUM (assets under mgt) fee you'll usually see that charged out separately as a quarterly fee For a Vanguard or Fidelity account where you are holding mutual funds, the charges won't be shown explicitly as a separate charge. The mgt fees are taken...
by fabdog
Sun Jan 27, 2019 10:12 am
Forum: Personal Consumer Issues
Topic: HVAC Specs
Replies: 15
Views: 1168

Re: HVAC Specs

I'd ask the builder about the FROG and how well it will be insulated, and if there are neighbors with FROG's ask them their experience. Ours was not well insulated, and we have to use a portable aircon up there to be able to use it in the summer. Linking it to the one system for the first floor migh...
by fabdog
Sat Jan 26, 2019 8:42 pm
Forum: Personal Investments
Topic: Can/should we use a Roth for 2018?
Replies: 4
Views: 523

Re: Can/should we use a Roth for 2018?

you can make the Roth contribution for 2018 up until April 15th of this year. I'd run my taxes thru software first to make sure nothing surprising (did you itemize last year and deduct state taxes for example, that would show up as income this year if you got a state tax refund) With no other taxabl...
by fabdog
Fri Jan 25, 2019 6:26 pm
Forum: Personal Finance (Not Investing)
Topic: First time owing federal taxes
Replies: 8
Views: 1136

Re: First time owing federal taxes

the withholding tables were updated early in 2018 for the new tax bill, and most folks saw federal withholding go down on the same income. Depending on your other circumstances, that may or may not have been enough withholding. If you look at your change in income vs your change in federal tax withh...
by fabdog
Fri Jan 25, 2019 12:06 pm
Forum: Personal Investments
Topic: Backdoor Roth contribution at age 70+?
Replies: 9
Views: 337

Re: Backdoor Roth contribution at age 70+?

if it came as box 1, no box 11, and had SS and medicare taken out... good to go as earned income for 2018.

Curious what type of deferred comp plan, but looks like good to go on earned income

Mike
by fabdog
Fri Jan 25, 2019 11:04 am
Forum: Personal Investments
Topic: Backdoor Roth contribution at age 70+?
Replies: 9
Views: 337

Re: Backdoor Roth contribution at age 70+?

the deferred comp will most likely not count as earned income for purpose of Roth/Tira. It will come as box 1 and box 11, no ss/medicare.

This will not count as earned income in the year paid out

Mike
by fabdog
Fri Jan 25, 2019 7:12 am
Forum: Personal Finance (Not Investing)
Topic: Tax question for rental property
Replies: 6
Views: 742

Re: Tax question for rental property

option 1 is not a valid option for a rental If you've made a repair/improvement to the rental it needs to be accounted for following the rules for expensing or depreciation of the repair/improvement You'll want to break out the costs of repairing the deck and doing the outdoor tile and treat them se...
by fabdog
Wed Jan 23, 2019 4:44 pm
Forum: Personal Investments
Topic: 199A Pass Thru double dip?
Replies: 5
Views: 270

Re: 199A Pass Thru double dip?

We currently file one tax return not two (person / sole proprietor and rental LLC), so my concern was whether or not IRS would want two separate returns. one return is fine, Schedule C for the 1099 income, Schedule E for the rental. I am working thru the beginnings of my return now, and TurboTax ca...
by fabdog
Wed Jan 23, 2019 3:18 pm
Forum: Personal Investments
Topic: 199A Pass Thru double dip?
Replies: 5
Views: 270

Re: 199A Pass Thru double dip?

OK. When you say your family will qualify for "almost all 20%" I'm confused confused. Are you saying you'll hit the phase out limits for income and you have a specified service business? you mention a 1099 job, is that your sole income or are there W2 wages as well? For the rental property, the IRS ...
by fabdog
Wed Jan 23, 2019 11:09 am
Forum: Personal Consumer Issues
Topic: Internet service speed issue
Replies: 25
Views: 1238

Re: Internet service speed issue

if you are testing at a laptop or desktop connected by wireless router, check and see if it has an issue (maybe reboot it, check for firmware upgrades) My daughter had a similar issue, her service speed went thru the floor. Replaced wireless router and back to normal. May also be an issue with the c...
by fabdog
Tue Jan 22, 2019 10:40 am
Forum: Personal Investments
Topic: HSA employer->personal account strategy
Replies: 11
Views: 667

Re: HSA employer->personal account strategy

The full contribution on first paycheck only works if your employer allows it. Mine will prorate what you select across the 24 pay periods of the year. So check and see what your employer's payroll allows As noted, if you want to simplify you can just turn off your payroll and pay the medicare on it...
by fabdog
Mon Jan 21, 2019 8:03 pm
Forum: Personal Investments
Topic: Multiple 401K accounts
Replies: 3
Views: 265

Re: Multiple 401K accounts

There may be a cost advantage, depending on the fees in your former employers plans. Or maybe not It would certainly make life easier to have it all in one place, especially if you continue to change employers, don't want to lose track That said, your current employers plan may not allow rollovers i...
by fabdog
Mon Jan 21, 2019 4:37 pm
Forum: Personal Finance (Not Investing)
Topic: Can you still deduct interest paid on indebtedness secured by primary residence of $1,100,000 for tax year 2018?
Replies: 2
Views: 647

Re: Can you still deduct interest paid on indebtedness secured by primary residence of $1,100,000 for tax year 2018?

The answer is interest on 1,000,000 The answer you quote refers to both the original mortgage and any home equity loans taken out, with the limits on mortgage at $1 million, and Heloc at $100K Since you didn't mention a HELOC, my take is you can deduct interest on $1 million For 2018, you can deduct...
by fabdog
Mon Jan 21, 2019 11:59 am
Forum: Personal Finance (Not Investing)
Topic: Overcontribution to 401K
Replies: 8
Views: 419

Re: Overcontribution to 401K

I'm really surprised mega corp let her over contribute. They are usually quite strict on this As an example I moved in the middle of the year, and the 2 locations were separate entities although part of the same mega corp. They reset my SS payments YTD to zero, and I ended up being over withheld, an...
by fabdog
Sun Jan 20, 2019 11:12 am
Forum: Personal Consumer Issues
Topic: Do any of you guys have a good on-line wine store?
Replies: 12
Views: 1000

Re: Do any of you guys have a good on-line wine store?

I haven't found the on line pricing to be that good. Depending on where you live, I find that between Total Wine, Costco, and Trader Joe's I can get access to a large variety of wines at good prices

Mike
by fabdog
Sat Jan 19, 2019 1:48 pm
Forum: Personal Finance (Not Investing)
Topic: Deducting Self Paid Health Insurance Premiums from Maternity Leave
Replies: 15
Views: 467

Re: Deducting Self Paid Health Insurance Premiums from Maternity Leave

Sorry for using "out of pocket" as shorthand for an item that you actually pay, and are not reimbursed for. From IRS topic 502 You can only include the medical expenses you paid during the year and you can only use the expenses once on the return. You must reduce your total deductible medical expens...
by fabdog
Sat Jan 19, 2019 12:03 pm
Forum: Personal Finance (Not Investing)
Topic: Deducting Self Paid Health Insurance Premiums from Maternity Leave
Replies: 15
Views: 467

Re: Deducting Self Paid Health Insurance Premiums from Maternity Leave

since you paid out of pocket for the insurance, it would be deductible as a medical expense. It will be subject to the 7.5% of AGI limits, as are all out of pocket medical expenses. The premiums that come out of her paycheck are not eligible for the medical expense deduction if they are done on a pr...
by fabdog
Sat Jan 19, 2019 11:21 am
Forum: Personal Finance (Not Investing)
Topic: turbotax deduction for mortgage insurance premiums question
Replies: 2
Views: 210

Re: turbotax deduction for mortgage insurance premiums question

do you have enough deductions to make it over the new standard deduction thresholds? If MFJ do you have more than $24K in state/local taxes/mortgage interest/MIP/Charitable deductions? If so then depending on the amount of your premium you may want to wait If not, then it won't matter as you'll take...
by fabdog
Sat Jan 19, 2019 10:53 am
Forum: Personal Investments
Topic: Are 529 account ownership transfers subject to tax recapture in VA?
Replies: 3
Views: 165

Re: Are 529 account ownership transfers subject to tax recapture in VA?

not a lawyer, but I believe what they are saying in that section is that the new owners inherit the tax implications of the account. specific to the 2 terms mentioned, on carryover, if your parents had any carryover deductions they hadn't yet deducted, those would move to you as the new owner recapt...
by fabdog
Wed Jan 16, 2019 12:12 pm
Forum: Personal Finance (Not Investing)
Topic: Job Application Question
Replies: 4
Views: 408

Re: Job Application Question

I think you are confusing the job sites with recruiters. On most of the job sites (indeed, Monster) if companies are posting, they are paying the board for the ad, and I believe there are fees for each applicant they source. I am not aware of fees for the actual hire a recruiter or headhunter gets a...
by fabdog
Wed Jan 16, 2019 11:12 am
Forum: Personal Investments
Topic: Superfund a 529 Account
Replies: 4
Views: 450

Re: Superfund a 529 Account

They likely don't want to venture into what they think of as tax advice. If you do the superfunding, you'll need to file a from 709, gift tax return, to report it, even though you won't owe any tax and won't have any impact on your estate tax amount you can exclude. But it doesn't matter if you do i...
by fabdog
Tue Jan 15, 2019 8:57 am
Forum: Personal Investments
Topic: Roth v. Trad for retiring USAF colonel w/30 years active duty
Replies: 11
Views: 1059

Re: Roth v. Trad for retiring USAF colonel w/30 years active duty

As you noted there are many spirited discussions on how to solve the Traditional/Roth puzzle But in general, if you think you are in a lower tax bracket today than you would be in retirement, then it makes sense to go with a Roth. Looking ahead, and my crystal ball no better than anyone else's, so u...
by fabdog
Mon Jan 14, 2019 1:51 pm
Forum: Personal Investments
Topic: Money market allocation
Replies: 2
Views: 379

Re: Money market allocation

Cash

Mike
by fabdog
Mon Jan 14, 2019 10:25 am
Forum: Personal Investments
Topic: Backdoor Roth IRA - Did I screw up?
Replies: 6
Views: 539

Re: Backdoor Roth IRA - Did I screw up?

yes, you had an unforced error on your backdoor Roth. The only balance that matters for your 8606 calc on the backdoor is 12/31. So now you'll have to prorate the backdoor, and depending on how far above zero your IRA balance is, some or most of the transaction will now be taxable. You can do a test...
by fabdog
Fri Jan 11, 2019 9:41 am
Forum: Personal Investments
Topic: 529 Rollover/out Question
Replies: 4
Views: 173

Re: 529 Rollover/out Question

Fidelity runs plans for NH, MA, AZ, and DE. You can go to the Fidelity site and see what they offer for each of the states plans. Every 529 is sponsored by a state. That's just the way they work. You can invest in any state's plan you desire. When we lived in a state with no state tax deduction we u...
by fabdog
Fri Jan 11, 2019 9:26 am
Forum: Personal Investments
Topic: 529 Rollover/out Question
Replies: 4
Views: 173

Re: 529 Rollover/out Question

you can roll your 529 into another state's plan. Vanguard runs plans for Utah, Nevada, and NY. They also have menus of funds or age based selections (but much better expenses). I haven';t seen one that looks like a brokerage account. Each plan is sponsored by a state and administered by a fund compa...
by fabdog
Thu Jan 10, 2019 4:11 pm
Forum: Personal Finance (Not Investing)
Topic: resources about a rental property business
Replies: 4
Views: 515

Re: resources about a rental property business

biggerpockets.com is focused on real estate investing

Mike
by fabdog
Thu Jan 10, 2019 11:42 am
Forum: Personal Finance (Not Investing)
Topic: Rules regarding reimbursing from HSA?
Replies: 3
Views: 244

Re: Rules regarding reimbursing from HSA?

Yes. As long as an allowable medical expense. There are folks who save up receipts and reimburse years later, taking advantage of the tax free growth.

The amount you had in the account when you had the procedure does not matter. Does not even have to be reimbursed in the same year

Mike
by fabdog
Thu Jan 10, 2019 11:27 am
Forum: Personal Investments
Topic: Tax concerns about buying CDs at discount/premium
Replies: 8
Views: 497

Re: Tax concerns about buying CDs at discount/premium

I have not done this for CD's, but entering a 1099 with OID is simple in Turbotax. If you have premium getting amortized that should get reported as well, and you'd need to enter an "offset" to your taxable interest for the premium amortization (it's returning your purchase). Make a separate entry t...
by fabdog
Wed Jan 09, 2019 5:42 pm
Forum: Personal Finance (Not Investing)
Topic: Virginia 529 state tax deduction
Replies: 23
Views: 15056

Re: Virginia 529 state tax deduction

Actually, the statement matched their written guidance, since I didn't want to depend on a phone consult, I wanted to have something I could fall back on in writing later. Not clear what's changed, it seemed they were really looking to prevent double dipping between the two types of VA 529 plans (wh...
by fabdog
Wed Jan 09, 2019 4:48 pm
Forum: Personal Finance (Not Investing)
Topic: Virginia 529 state tax deduction
Replies: 23
Views: 15056

Re: Virginia 529 state tax deduction

I had this situation earlier this year. I had money in a Vanguard plan that had gotten no state tax deductions, and asked Va 529 plan how it would be treated when I rolled it over into VA plan. They replied via email it would be treated as a contribution. My end of year statement shows it as a contr...
by fabdog
Tue Jan 08, 2019 10:37 am
Forum: Personal Consumer Issues
Topic: Paying "cash" for auto - possibly w regular credit card?
Replies: 57
Views: 4516

Re: Paying "cash" for auto - possibly w regular credit card?

Most dealers will only take a credit card for a deposit. Last 2 dealerships I dealt with had $500 and $2000 limits on what they would accept via CC as a deposit to hold the car I was buying Buying a car with a rewards card would be nice, but the dealer isn't going to pay the transaction fees. On che...
by fabdog
Tue Jan 08, 2019 8:44 am
Forum: Personal Finance (Not Investing)
Topic: What is the minimum amount of money that you have to spend for following item deductions to kick in?
Replies: 3
Views: 522

Re: What is the minimum amount of money that you have to spend for following item deductions to kick in?

They did go way. The threshold used to be amounts in total of all misc deductions above 2% of AGI. None of those items (classes, professional dues, union dues, tax prep, investment account fees, etc) are deductible any longer As noted in the previous post, if you can meet the lifetime learning credi...
by fabdog
Mon Jan 07, 2019 6:15 pm
Forum: Personal Finance (Not Investing)
Topic: TurboTax - too soon for purchase?
Replies: 15
Views: 1521

Re: TurboTax - too soon for purchase?

They will provide LOTS of updates.. no worries

Mike
by fabdog
Mon Jan 07, 2019 10:00 am
Forum: Personal Finance (Not Investing)
Topic: Child # 3 - seeking advice from older members
Replies: 89
Views: 7357

Re: Child # 3 - seeking advise from older members

Not sure how wise we are, but we were married at about the age you are now, and my wife had 2 girls from her first marriage. We then had another girl when I was 38/wife 37, and a son when I was 42/wife 41. We are now retired, and the two younger kids are junior in college/junior in high school. No r...
by fabdog
Sun Jan 06, 2019 1:50 pm
Forum: Personal Finance (Not Investing)
Topic: Turbo tax deluxe [Which version to use?]
Replies: 6
Views: 554

Re: Turbo tax deluxe

Deluxe should be fine for your needs. Given that you have a simple return (SS and basic 1099's) you can do online or with the download product. Some folks find the download product better as you don't have your data stored in the cloud, and can use the software for what if planning Also, you can fin...