Search found 75 matches

by soxfan10
Sat Dec 05, 2020 7:29 am
Forum: Personal Finance (Not Investing)
Topic: Establishing "Reasonable Compensation" for S-Corp
Replies: 28
Views: 1557

Re: Establishing "Reasonable Compensation" for S-Corp

The question; "is $175,000 to $200,000 really a comparative salary, management, marketing and other services on a $500,000 business. Only you can answer that based on what someone with your knowledge, skills and education would receive as a W-2 employee. This is a good point, and raises the is...
by soxfan10
Fri Dec 04, 2020 10:38 pm
Forum: Personal Finance (Not Investing)
Topic: Is gift of loan principal taxable income to holder of loan?
Replies: 14
Views: 730

Re: Is gift of loan principal taxable income to holder of loan?

If it is an installment sale, you will still need to recognize the income. Forgiving seller financed debt should not have any income tax impact to the donee. No gift tax implications if less than $15k per person (can effectively be $60k if you and spouse are holders of the note and child + spouse ar...
by soxfan10
Fri Dec 04, 2020 10:28 pm
Forum: Personal Finance (Not Investing)
Topic: Establishing "Reasonable Compensation" for S-Corp
Replies: 28
Views: 1557

Re: Establishing "Reasonable Compensation" for S-Corp

The question; "is $175,000 to $200,000 really a comparative salary, management, marketing and other services on a $500,000 business. Only you can answer that based on what someone with your knowledge, skills and education would receive as a W-2 employee. This is a good point, and raises the is...
by soxfan10
Thu Dec 03, 2020 7:12 pm
Forum: Personal Finance (Not Investing)
Topic: Establishing "Reasonable Compensation" for S-Corp
Replies: 28
Views: 1557

Re: Establishing "Reasonable Compensation" for S-Corp

if she is the sole source of the corporation's revenues - which are all based on fees for her services - it is harder to argue that 100% of the profits are from anything other than her. This is exactly what my accountant said while I was the sole provider. And then when I had associates working for...
by soxfan10
Fri Nov 27, 2020 3:43 pm
Forum: Personal Finance (Not Investing)
Topic: Just who do I owe taxes to?
Replies: 14
Views: 1773

Re: Just who do I owe taxes to?

Do/will you live and perform the services in Texas? If so, that is who you owe taxes to (i.e., zero state income tax).

If you lived in New York or New Jersey for a part of 2020 then you should file a partial year return for 2020 for the period you were a resident in that state.
by soxfan10
Sun Nov 22, 2020 8:35 am
Forum: Personal Investments
Topic: Do I have too much HSA money?
Replies: 87
Views: 10768

Re: Do I have too much HSA money?

Receipts are a PITA. I save my summary EOBs at the end of the year, downloaded from the insurance co. EOBs are not proof of payment. Spirit Rider - what would you suggest we save to prove the medical bill, that we paid it, and that we were not reimbursed for it? 1 - How do we prove we were "no...
by soxfan10
Mon Nov 16, 2020 9:45 pm
Forum: Personal Consumer Issues
Topic: Best place to buy a TV
Replies: 54
Views: 7176

Re: Best place to buy a TV

LG OLED65CXPUA LG List Price = $1900 Amazon = $1897 ABT = $1897 Costco = $1850 Best Buy = $1900 Does it really matter where you buy it? Abt doesn’t charge sales tax iirc. Up to you if you think that’s ethical or not, but apparently it’s legal. ETA: I get 5% off with Amazon store card, so it’s a clo...
by soxfan10
Sun Nov 01, 2020 1:01 pm
Forum: Personal Finance (Not Investing)
Topic: Accountants —- LLC Tax Return Required?
Replies: 12
Views: 659

Re: Accountants —- LLC Tax Return Required?

No, the Internal Revenue Service doesn't recognize LLCs for tax purposes. I appreciate your posting, but that’s not a true statement. LLCs are recognized by the internal revenue service. For example, a two member pass-through LLC is required to file tax returns and submit K-1 to its members. Also r...
by soxfan10
Sun Oct 25, 2020 10:26 am
Forum: Personal Finance (Not Investing)
Topic: Parental Leave - 4 weeks or 16 weeks - thoughts/perspective?
Replies: 45
Views: 3793

Re: Parental Leave - 4 weeks or 16 weeks - thoughts/perspective?

You will need to look at what the HR defines as "primary caregiver". That is likely going to be the mother as she nurses and will be the primary carer of the child. While you share the responsibility the parental roles, you are not the primary caregiver and likely the secondary caregiver....
by soxfan10
Sat Oct 24, 2020 6:47 am
Forum: Personal Finance (Not Investing)
Topic: multiple babysitters over the summer/fall, 1099 or W2?
Replies: 20
Views: 1869

Re: multiple babysitters over the summer/fall, 1099 or W2?

I would first check and see if the babysitter is ok getting paid this way first. All the babysitters I had expected cash. Too bad cash is a payment type. I am doing it legally and they are properly getting classified as a household employer by me and getting a W-2. If they do not meet the minimum t...
by soxfan10
Mon Oct 19, 2020 4:56 pm
Forum: Personal Finance (Not Investing)
Topic: HM Bradley savings plan 3% APY
Replies: 53
Views: 5523

Re: HM Bradley savings plan 3% APY

Thanks, Auream. This still seems a little squishy. HMB may be the "marketer" as you say and not the bank. I can see a lot of fingers being pointed at "the other guy." Who will issue the 1099-INT? Will it be HMB, Hatch or Hatch's parent, Firstrust? I'm still not convinced that my...
by soxfan10
Thu Oct 15, 2020 9:58 pm
Forum: Personal Investments
Topic: HSA -FICA tax
Replies: 6
Views: 623

Re: HSA -FICA tax

Correct. 1.45% of $7k is $101 so that's your benefit. (well, more like $103 since the amount is actually $7100) At the same time, typically a negative of going through payroll is that your future SS would be slightly less, but you don't get that negative either. Also shelters the 0.9% surtax on hig...
by soxfan10
Mon Oct 12, 2020 8:11 pm
Forum: Personal Finance (Not Investing)
Topic: Daughter getting job in the UK and tax/IRA implications
Replies: 19
Views: 1953

Re: Daughter getting job in the UK and tax/IRA implications

At a GBP40k pay, theres almost certainly no residual US tax. For pretty much any income in the UK, the FTC should be sufficient to ensure no US tax so if there is a desire to have earned income, just use the FTC. The FEIE is often helpful for people who are working in the middle east or Asia where p...
by soxfan10
Mon Oct 12, 2020 5:12 pm
Forum: Personal Finance (Not Investing)
Topic: S-Corp owners: How do you deal with profits and pass-through tax obligations?
Replies: 11
Views: 1146

Re: S-Corp owners: How do you deal with profits and pass-through tax obligations?

Question to the board: how do distributions to LLC owners (specifically for outside investors) get treated? My understanding is the Operating Agreement will state the % of Earnings Before Taxes ("EBT") will be distributed to the owners who are responsible for paying personal taxes on that...
by soxfan10
Sun Oct 11, 2020 8:51 am
Forum: Personal Finance (Not Investing)
Topic: Cost for CPA, and billing detail
Replies: 14
Views: 1162

Re: Cost for CPA, and billing detail

For federal plus three states and a SP that seems pretty reasonable
by soxfan10
Sat Oct 10, 2020 2:10 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Question for Business Owners / Tax Gurus
Replies: 11
Views: 761

Re: Tax Question for Business Owners / Tax Gurus

You currently don't file a schedule C, you'd have to file a schedule C to do what you propose. So you need to weigh the added cost vs the deduction on $3,000 (worst case scenario). I dont think a Schedule C works here - a LLC is a disregarded entity absent an election otherwise. I dont see how the ...
by soxfan10
Sat Oct 10, 2020 7:58 am
Forum: Personal Finance (Not Investing)
Topic: Tax Question for Business Owners / Tax Gurus
Replies: 11
Views: 761

Re: Tax Question for Business Owners / Tax Gurus

Ask the partnership to pay the bills instead and reduce your salary accordingly. It's a win-win-win... you get your expenses deducted, and both you and the partnership pay less FICA. The partnership isnt going to pay less FICA - it doesnt pay any FICA on payments to partners. Guaranteed payments fo...
by soxfan10
Fri Oct 09, 2020 11:00 pm
Forum: Personal Finance (Not Investing)
Topic: Use of Whole Life Insurance for Estate Planning
Replies: 61
Views: 3721

Re: Use of Whole Life Insurance for Estate Planning

I would like to thank everyone for their help on this. I will do the calculations and will read the article and watch the podcast. We are not in the 22MM group but my concern which got deleted was that the exculsion may get a lot smaller. I am now fully alerted of the need to be very cautious about...
by soxfan10
Thu Oct 08, 2020 10:09 pm
Forum: Personal Finance (Not Investing)
Topic: Use of Whole Life Insurance for Estate Planning
Replies: 61
Views: 3721

Re: Use of Whole Life Insurance for Estate Planning

If you don't need life insurance don't buy any. If kids are grown you probably don't need any. This is just a gimmick to generate a big sales commission to your adviser. If you feel sorry for him just give him some money, it's better to gift it directly. The commission on whole life insurance is of...
by soxfan10
Thu Sep 24, 2020 8:49 pm
Forum: Personal Finance (Not Investing)
Topic: Advice for young people
Replies: 15
Views: 1898

Re: Advice for young people

My son has started his first career job. He has decided to invest 75% of his gross salary in Vanguard Target Retirement 2040 fund with its asset allocation of about 80% equities and 20% fixed income. That's my advice for you as well. Your advice is for a 20 year old just starting out in life to put...
by soxfan10
Tue Sep 22, 2020 10:27 pm
Forum: Personal Finance (Not Investing)
Topic: Bad Finance to put 20% down on House
Replies: 21
Views: 3333

Re: Bad Finance to put 20% down on House

Think the point is you only need a 4.5% return first year prior to any tax deductions to cover the PMI and Additional interest and that return requirement decreases each year. You get to keep 70k more liquid. I guess I had assumed PMI would scale with dollar amount delta to the 20% requirement seem...
by soxfan10
Mon Sep 21, 2020 9:53 am
Forum: Personal Finance (Not Investing)
Topic: Aggressive SL Debt Pay down v. Not meeting other goals
Replies: 40
Views: 2269

Re: Aggressive SL Debt Pay down v. Not meeting other goals

Your top priority needs to be increasing your income. At 5 years out of law school, your income is very low for Boston if you are in private practice. For reference, at 5 years out husband and I were both making around $150k each in a southeastern mid-sized city (not Atlanta, Miami, or even Nashvil...
by soxfan10
Sun Sep 20, 2020 8:15 am
Forum: Personal Finance (Not Investing)
Topic: Aggressive SL Debt Pay down v. Not meeting other goals
Replies: 40
Views: 2269

Re: Aggressive SL Debt Pay down v. Not meeting other goals

Your top priority needs to be increasing your income. At 5 years out of law school, your income is very low for Boston if you are in private practice. For reference, at 5 years out husband and I were both making around $150k each in a southeastern mid-sized city (not Atlanta, Miami, or even Nashvil...
by soxfan10
Sat Sep 19, 2020 8:10 pm
Forum: Personal Finance (Not Investing)
Topic: Aggressive SL Debt Pay down v. Not meeting other goals
Replies: 40
Views: 2269

Re: Aggressive SL Debt Pay down v. Not meeting other goals

Your top priority needs to be increasing your income. At 5 years out of law school, your income is very low for Boston if you are in private practice. For reference, at 5 years out husband and I were both making around $150k each in a southeastern mid-sized city (not Atlanta, Miami, or even Nashvil...
by soxfan10
Sat Sep 19, 2020 8:34 am
Forum: Personal Finance (Not Investing)
Topic: Aggressive SL Debt Pay down v. Not meeting other goals
Replies: 40
Views: 2269

Re: Aggressive SL Debt Pay down v. Not meeting other goals

As others have said - what your future income is a huge variable. My finances were very similar to yours when I graduated from law school, but 6 years out I make in then $175-200k range depending on exact bonus numbers (this was the reasonable expected path). Only you know what your reasonable compe...
by soxfan10
Sat Sep 12, 2020 9:47 am
Forum: Personal Finance (Not Investing)
Topic: So how does CA track residency for tax purposes?
Replies: 37
Views: 2785

Re: So how does CA track residency for tax purposes?

You may only have one domicile in theory - that doesnt mean that two states cant both win on a domicile argument. It's the taxpayer's burden to prove the domicile is not within the state. Generally the burden is on the party asserting change of domicile. I agree that, in theory, two different state...
by soxfan10
Sat Sep 12, 2020 6:57 am
Forum: Personal Finance (Not Investing)
Topic: So how does CA track residency for tax purposes?
Replies: 37
Views: 2785

Re: So how does CA track residency for tax purposes?

My FIL has a place in VA and in FL and he keeps a journal for travel to FL, keeps airline tickets, uses a credit card for dinners, and the like, and makes sure that he spends 180+ days in FL.) I believe if your FIL maintains a home in VA, he would be considered a resident no matter how much time he...
by soxfan10
Sun Sep 06, 2020 9:17 pm
Forum: Personal Finance (Not Investing)
Topic: Am I being overcharged for life insurance? (Don't worry guys, I'm talking about term life.)
Replies: 37
Views: 3036

Re: Am I being overcharged for life insurance? (Don't worry guys, I'm talking about term life.)

I got a 30 year $1.5M term life policy this year. Age 36 Worked w/ a broker recommended by my fee-only CFP He said due to my (listed below) health conditions most companies turned me down entirely My only option was $2000/year $166/month by one company I was given standard rating because of the fol...
by soxfan10
Wed Sep 02, 2020 10:47 pm
Forum: Personal Finance (Not Investing)
Topic: How Much House Can We Afford in HCOL Area?
Replies: 300
Views: 19816

Re: How Much House Can We Afford in HCOL Area?

More experienced forum members will likely provide more details, but there're factors beyond house purchase you need to consider. For example, I've heard of 1% rule, which says that at least 1% of the home value goes towards maintenance projects. For $2 million home that's $20 thousand. If your com...
by soxfan10
Sun Aug 30, 2020 9:19 pm
Forum: Personal Finance (Not Investing)
Topic: Just found my dream home/offer accepted, need lending ASAP and have important questions, you're my main resource
Replies: 91
Views: 6914

Re: Just found my dream home/offer accepted, need lending ASAP and have important questions, you're my main resource

In addition to an existing ~$1,000,000 investment portfolio at age ~30, earning an estimated $80,000/year in interest. That sounds a good investment. Is this your forecast for growth? You say "interest." Are you getting 8% interest? Sounds high, no!? Also, you sound sort of defensive/aggr...
by soxfan10
Sun Aug 30, 2020 11:12 am
Forum: Personal Finance (Not Investing)
Topic: Just found my dream home/offer accepted, need lending ASAP and have important questions, you're my main resource
Replies: 91
Views: 6914

Re: Just found my dream home/offer accepted, need lending ASAP and have important questions, you're my main resource

I'll edit it, but conservative income guesstimate is $340k/year. That amounts to $23k after taxes per month in my area. Are you already making this income? Is the $340k gross? How accurate is the $23k/mo after taxes? We make more than $340k gross and our net is significantly lower. I’ll put it char...
by soxfan10
Sun Aug 30, 2020 10:46 am
Forum: Personal Finance (Not Investing)
Topic: Just found my dream home/offer accepted, need lending ASAP and have important questions, you're my main resource
Replies: 91
Views: 6914

Re: Just found my dream home/offer accepted, need lending ASAP and have important questions, you're my main resource

I'll edit it, but conservative income guesstimate is $340k/year. That amounts to $23k after taxes per month in my area. Are you already making this income? Is the $340k gross? How accurate is the $23k/mo after taxes? We make more than $340k gross and our net is significantly lower. I’ll put it char...
by soxfan10
Sat Aug 29, 2020 10:51 am
Forum: Personal Finance (Not Investing)
Topic: Pull Out Money From 401k to Buy New Home
Replies: 20
Views: 1762

Re: Pull Out Money From 401k to Buy New Home

I am not an expert on this but if you take a loan from 401k, aren’t you paying it back with your taxed dollars? Effectively you paying 2 times the tax on the amount you borrow? Yes, it will be paid back in after tax dollars. That is not a disadvantage to 401k loans as all loans are paid in after ta...
by soxfan10
Sat Aug 29, 2020 10:36 am
Forum: Personal Finance (Not Investing)
Topic: Verify a young families priorities
Replies: 35
Views: 3450

Re: Verify a young families priorities

Welcome to the Forum! Thank you, glad to be here! A general question - do you and spouse have life insurance? You mention that you are both employed, so one spouse isn’t fully financially dependent on the other. However, with a small child, it likely makes sense to have some life insurance on each ...
by soxfan10
Tue Aug 25, 2020 9:11 pm
Forum: Personal Finance (Not Investing)
Topic: Dentist office with PLLC - will it save taxes?
Replies: 6
Views: 496

Re: Dentist office with PLLC - will it save taxes?

Hi guys, I am thinking of forming a dental office (PLLC) taking about 1mil in loan for the practice. It will be a single member LLC and wondering if there will be any tax benefits for doing a PLLC (especially write offs) Assuming a profit of business is around 500k. Can I just take home 200k and le...
by soxfan10
Tue Aug 25, 2020 8:40 pm
Forum: Personal Finance (Not Investing)
Topic: Dentist office with PLLC - will it save taxes?
Replies: 6
Views: 496

Re: Dentist office with PLLC - will it save taxes?

Hi guys, I am thinking of forming a dental office (PLLC) taking about 1mil in loan for the practice. It will be a single member LLC and wondering if there will be any tax benefits for doing a PLLC (especially write offs) Assuming a profit of business is around 500k. Can I just take home 200k and le...
by soxfan10
Sun Aug 16, 2020 7:51 am
Forum: Personal Consumer Issues
Topic: buying a car every year for almost no money
Replies: 61
Views: 10465

Re: buying a car every year for almost no money

What makes you so sure the dealer is going to offer the $6,300 discount again? These cars are priced at the same as a Tesla Model3 and all things being equal most people will buy a model 3 if both cars have the exact same price.. Hence the dealers are forced to discount. Also in California they hav...
by soxfan10
Fri Aug 14, 2020 6:23 am
Forum: Personal Finance (Not Investing)
Topic: Lawyers - How much does it cost to write a prenup contract?
Replies: 48
Views: 6108

Re: Lawyers - How much does it cost to write a prenup contract?

I would never review any "prenup" that a non-lawyer client attempted to prepare themselves. That is like me say, "Hey, I don't want to pay an oral surgeon to take out my wisdom teeth. I'm simply going to do it myself, and then have them quickly check my work." Not the same at al...
by soxfan10
Fri Jul 24, 2020 2:49 am
Forum: Personal Finance (Not Investing)
Topic: Sole Proprietor Taxes for next year -- Am I getting this right?
Replies: 2
Views: 309

Re: Sole Proprietor Taxes for next year -- Am I getting this right?

Biggest thing is the 20% pass through deduction is the lower of eligible income or taxable income. For some with no other sources of income, that will certainly be taxable income. Approximately halves that deduction on your facts.
by soxfan10
Wed Jul 22, 2020 10:27 pm
Forum: Personal Finance (Not Investing)
Topic: Home refinance and cost basis / tax implications
Replies: 5
Views: 454

Re: Home refinance and cost basis / tax implications

niceguy7376 wrote: Wed Jul 22, 2020 10:08 pm I do not think there is any relation between the cash to closing a refinance and cost basis.
There is not. The full initial purchase price including the acquisition financing is included in basis to begin with. Paying down the debt doesnt change anything.
by soxfan10
Mon May 18, 2020 5:01 pm
Forum: Personal Consumer Issues
Topic: What kind of sunglasses?
Replies: 107
Views: 6774

Re: What kind of sunglasses?

Probably a bit out of the price range, but Randolph Engineering makes some of the best on the market and has some models in the $150-$200 range (can also spend $400-$500). They trend more to the aviator (they started as a contractor to the Navy and Air Force in the 1970s) and similar styles so may n...
by soxfan10
Fri May 01, 2020 5:39 pm
Forum: Personal Consumer Issues
Topic: Reevaluating Auto Purchase Strategy
Replies: 11
Views: 968

Re: Reevaluating Auto Purchase Strategy

3. Dealers will be anxious to do a deal. 4. Manufacturers will be anxious to move existing inventory. I don't think either of these are true at this time. Some automotive companies are happily filling lucrative ventilator and PPE contracts. As for number three, I have a friend who works for a local...
by soxfan10
Fri May 01, 2020 10:43 am
Forum: Personal Finance (Not Investing)
Topic: Trying to lower tax on short term capital gains. Do conservation easements work?
Replies: 137
Views: 9476

Re: Trying to lower $800k tax on short term capital gains. Do conservation easements work?

Buy a property with massive depreciation (e.g., lots of bonus depreciation that’s accelerated under the 2017 tax act), become a real estate professional, and the offset the depreciation against your capital gains? This is a completely new idea to me. Is this worthwhile or is it spend $1 to save .50...
by soxfan10
Fri May 01, 2020 7:08 am
Forum: Personal Finance (Not Investing)
Topic: Trying to lower tax on short term capital gains. Do conservation easements work?
Replies: 137
Views: 9476

Re: Trying to lower $800k tax on short term capital gains. Do conservation easements work?

Buy a property with massive depreciation (e.g., lots of bonus depreciation that’s accelerated under the 2017 tax act), become a real estate professional, and the offset the depreciation against your capital gains? This is a completely new idea to me. Is this worthwhile or is it spend $1 to save .50...
by soxfan10
Thu Apr 30, 2020 8:56 pm
Forum: Personal Finance (Not Investing)
Topic: Trying to lower tax on short term capital gains. Do conservation easements work?
Replies: 137
Views: 9476

Re: Trying to lower $800k tax on short term capital gains. Do conservation easements work?

Just adding a second post to add - much like the shelters of the 1970s and 80s, the only way these work and create positive after tax returns is to have unrealistic valuations. This is even more so now than it was 40+ years ago when federal rates were as high as 70%. The promoter needs to get paid a...
by soxfan10
Thu Apr 30, 2020 8:46 pm
Forum: Personal Finance (Not Investing)
Topic: Trying to lower tax on short term capital gains. Do conservation easements work?
Replies: 137
Views: 9476

Re: Trying to lower $800k tax on short term capital gains. Do conservation easements work?

Has anyone tried conservation easements? I would be wary. Certain iterations of the conservation easement strategy have been put on the listed transaction list (generally not a good idea to engage in a listed transaction affirmatively). You will also need to be prepared to defend the value of the e...
by soxfan10
Mon Apr 27, 2020 12:29 pm
Forum: Personal Finance (Not Investing)
Topic: Do 529s, UMTAs and HSAs Cause Wash Sales
Replies: 28
Views: 1472

Re: Do 529s, UMTAs and HSAs Cause Wash Sales

IRS Publications are general information, are not all-inclusive and do not constitute "substantial authority. You are reading to fit your narrative. Until shown contrary authoritative evidence, I shall accept the IRS Publications as written. In this case, that means that indirect transactions ...
by soxfan10
Sat Apr 11, 2020 12:40 pm
Forum: Personal Finance (Not Investing)
Topic: 32 year old couple w/newborn checkup
Replies: 23
Views: 1736

Re: 32 year old couple w/newborn checkup

Yep, Boston. Any of the trains from North Station to Haverhill, Lowell, Worcester, Fitchburg, etc that take you an hour outside the city put you in the $450-$550k price range for a nice house if that size. But if you work in downtown and would need to get on the subway after the train, then your pr...
by soxfan10
Sat Apr 11, 2020 11:44 am
Forum: Personal Finance (Not Investing)
Topic: 32 year old couple w/newborn checkup
Replies: 23
Views: 1736

Re: 32 year old couple w/newborn checkup

My wife and I are also attorneys and in a very similar position income wise, student loans, and HCOL, probably the same city judging from your name. We have one small child in daycare, also $1700/month, who's climbing all over me asni write this. The only thing that jumped out at me was the house. ...
by soxfan10
Sat Apr 11, 2020 9:11 am
Forum: Personal Finance (Not Investing)
Topic: 32 year old couple w/newborn checkup
Replies: 23
Views: 1736

Re: 32 year old couple w/newborn checkup

Too much debt, while the plan has a high probability of working out the plan laid out only works if things go exactly as OP needs them to on the employment front (or better yet, "life" front) for the next 5-7 years. $900k debt is nothing to sneeze at with the assets/income listed. Making ...