Search found 7141 matches

by Wagnerjb
Wed Mar 07, 2018 8:52 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement portfolio planning, asset allocation, debt in retirement
Replies: 4
Views: 942

Re: Retirement portfolio planning, asset allocation, debt in retirement

Questions: 1. With my taxable income dropping in retirement, I am contemplating whether to take to take advantage of the 0% capital gains rate by drawing down my taxable account to pay-off my mortgage early (over the first two to three years of retirement). One motivating factor is that with the in...
by Wagnerjb
Wed Mar 07, 2018 10:03 am
Forum: Investing - Help with Personal Investments
Topic: I want to retire
Replies: 28
Views: 5300

Re: I want to retire

Once you sell the house, it looks like you will have roughly $1.8 million in assets. If you were to wait and retire at age 65, those assets would support around $72,000 of income (pretax) for the duration of your retirement. For you to have $85k (after tax?) to spend, I am thinking you need to gener...
by Wagnerjb
Mon Mar 05, 2018 9:00 am
Forum: Personal Finance (Not Investing)
Topic: What is the tax situation look like for an inherited trust?
Replies: 11
Views: 890

Re: What is the tax situation look like for an inherited trust?

From my research, any tax on money (interest, dividends, CG's) that is created by the trust, and recycled back into the trust, is paid for by the trust and not myself. Any income that the trust distributes to me is what I am interested in. From my understanding, ANY money I recieve would be taxed a...
by Wagnerjb
Thu Mar 01, 2018 9:01 am
Forum: Personal Finance (Not Investing)
Topic: Will my lax approach to record keeping fly in an audit?
Replies: 40
Views: 4267

Re: Will my lax approach to record keeping fly in an audit?

No! The IRS quite explicitly states that money saved by a dependent does not count as support provided by the dependent. If the child's income goes into savings in the child's name, that does not count as support provided by the child. However, if the child spends their income (or their savings, fo...
by Wagnerjb
Wed Feb 28, 2018 6:52 pm
Forum: Personal Finance (Not Investing)
Topic: Tax question: Foreign Tax Credit
Replies: 33
Views: 3464

Re: Tax question: Foreign Tax Credit

A line for the carryforward would be a help and I make that calculation in my tax spreadsheet. Maybe they considered it unnecessary with the detailed computation requested for Form 1116 Line 10. It looks like Form 1116 can get quite complicated with five different categories of income and a separat...
by Wagnerjb
Wed Feb 28, 2018 12:49 pm
Forum: Personal Finance (Not Investing)
Topic: "FREE" Employer Group Life - Really Costs You !
Replies: 52
Views: 4929

Re: "FREE" Employer Group Life - Really Costs You !

If someone does not need the insurance, any cost is too much. My father used to tell me "don't buy something you don't need just because it's cheap". Agreed. Where do I check for this on this year's W2? The only boxes I don't know the meaning of is 12a and 12b, unless I'm missing something. The amo...
by Wagnerjb
Wed Feb 28, 2018 9:24 am
Forum: Investing - Help with Personal Investments
Topic: question regarding call options and earnings
Replies: 3
Views: 283

Re: question regarding call options and earnings

I don't have the answer to your question, but I know who does. Big Banks and Trading houses almost certainly have the answer. They study these patterns for a living. The scenario you describe must happen quite regularly in the financial markets, so there is plenty of quality data to research to dete...
by Wagnerjb
Wed Feb 28, 2018 8:58 am
Forum: Investing - Help with Personal Investments
Topic: US Treasury at 4%
Replies: 4
Views: 1892

Re: US Treasury at 4%

There are probably guys in the CCCP sitting around having the same conversation as BHs. Gosh, I sure hope not. Hopefully, they aren't sitting around asking each other questions like "Should I break up with my girlfriend?" or "What are your favorite socks?" or "Look at me, I have a $5,000 watch". :D...
by Wagnerjb
Tue Feb 27, 2018 12:50 pm
Forum: Personal Finance (Not Investing)
Topic: paying for child's college tuition - does it count towards the limit for gift tax?
Replies: 40
Views: 3347

Re: paying for child's college tuition - does it count towards the limit for gift tax?

No, you didn’t miss anything, Andy. As a practical manner, payments for a dependent’s college related expenses count toward support for dependents. I have never seen parents filing gift tax returns for such items. The rules in 26 U.S. Code § 2503 are really meant for those who pay for a “nondepende...
by Wagnerjb
Tue Feb 27, 2018 12:01 pm
Forum: Personal Finance (Not Investing)
Topic: paying for child's college tuition - does it count towards the limit for gift tax?
Replies: 40
Views: 3347

Re: paying for child's college tuition - does it count towards the limit for gift tax?

How many colleges charge more than $28k per year in room and board? I just Googled Harvard and saw that it was $10k. Harvard is not a cheap school, so I'd be surprised (without knowing) if a lot of schools charge more than $28k per year. Colleges don't charge room and board, except maybe for a Fres...
by Wagnerjb
Tue Feb 27, 2018 10:56 am
Forum: Personal Finance (Not Investing)
Topic: paying for child's college tuition - does it count towards the limit for gift tax?
Replies: 40
Views: 3347

Re: paying for child's college tuition - does it count towards the limit for gift tax?

The most well known ones are: (1). Payments made DIRECTLY to a qualified educational organization for TUITION. Note that both "directly" and "tuition" are the key words. In other words, you cannot make a direct payment of $50k ($20k for tuition and $30k for room and board) and claim $50k exemption....
by Wagnerjb
Mon Feb 26, 2018 9:09 pm
Forum: Investing - Theory, News & General
Topic: Systemic Risk in Ten Stocks?
Replies: 17
Views: 1662

Re: Systemic Risk in Ten Stocks?

My prediction is that this will probably match the market's returns over a long enough period of time, but will have greater volatility. I think that is a very reasonable expectation, although I would personally have closer to 30 stocks if possible. Here is an article that demonstrates the kind of ...
by Wagnerjb
Mon Feb 26, 2018 8:44 pm
Forum: Personal Finance (Not Investing)
Topic: Tax question: Foreign Tax Credit
Replies: 33
Views: 3464

Re: Tax question: Foreign Tax Credit

Can't you switch methods each yr ? Use 1116 to save unusable FT credits and don't use it if it is better to just do the simplified method. Of course you will need to use 1116 to make use of saved credits which means getting your US tax rate higher than the foreign tax rate. I assume if you choose t...
by Wagnerjb
Mon Feb 26, 2018 3:33 pm
Forum: Personal Finance (Not Investing)
Topic: Tax question: Foreign Tax Credit
Replies: 33
Views: 3464

Re: Tax question: Foreign Tax Credit

Can't you switch methods each yr ? Use 1116 to save unusable FT credits and don't use it if it is better to just do the simplified method. Of course you will need to use 1116 to make use of saved credits which means getting your US tax rate higher than the foreign tax rate. I assume if you choose t...
by Wagnerjb
Mon Feb 26, 2018 8:52 am
Forum: Personal Finance (Not Investing)
Topic: Tax question: Foreign Tax Credit
Replies: 33
Views: 3464

Re: Tax question: Foreign Tax Credit

1116 is a monster form. As I understand it, the credit can only be used to reduce past or future returns to the extent that U.S. taxes on foreign income exceed foreign taxes paid on that income. To start, you’d have to segregate income by source and category. Using form 1116 to carry over unused fo...
by Wagnerjb
Sun Feb 25, 2018 8:13 pm
Forum: Personal Finance (Not Investing)
Topic: HSA Contributions Tax Question (premium pass through)
Replies: 15
Views: 1383

Re: HSA Contributions Tax Question

Thanks for the response! I don't want to mistakenly deduct the $1500 twice from my income. Since it was included in box 12 code DD, it was already deducted from my income in my W2 and so I didn't pay taxes on it. If I list it under box 2 in form 8889, I believe I'll deduct it from my income again ....
by Wagnerjb
Sun Feb 25, 2018 2:06 pm
Forum: Personal Finance (Not Investing)
Topic: HSA Contributions Tax Question (premium pass through)
Replies: 15
Views: 1383

Re: HSA Contributions Tax Question

If you paid the $1500 in insurance premiums yourself (to the insurance company), then you can deduct those amounts from your income. I believe both the $1500 and the $219 need to be reflected on line 2 of your form 8889. That way, you can deduct the combined $1719 from your income. If you trick or f...
by Wagnerjb
Sun Feb 25, 2018 1:49 pm
Forum: Personal Finance (Not Investing)
Topic: Training courses and Lifetime Learning Credit for 2017 Taxes
Replies: 4
Views: 349

Re: Training courses and Lifetime Learning Credit for 2017 Taxes

I have taken several courses from Certstaff training center last year and paid a total of $2500. Can I claim them as LLC? I have all the receipts and certifications. I spoke with my accountant and he said I need 1098-T. Called training company and I am getting bumped around and not getting anywhere...
by Wagnerjb
Sun Feb 25, 2018 10:55 am
Forum: Investing - Help with Personal Investments
Topic: Roth Conversion Push with Tax Law Changes (Money Mag Article)
Replies: 23
Views: 3131

Re: Roth Conversion Push with Tax Law Changes (Money Mag Article)

So my parents read an article in Money Magazine ( http://time.com/money/5097654/make-this-one-change-to-your-retirement-account-now-tax-experts-say/ ) suggesting now is somehow particularly ideal to make Roth conversions. I just am not seeing how a ~3% marginal change makes conversions magically mo...
by Wagnerjb
Sun Feb 25, 2018 10:43 am
Forum: Personal Finance (Not Investing)
Topic: Vanguard 1099 question
Replies: 4
Views: 377

Re: Vanguard 1099 question

I am trying to understand the Vanguard 1099 The 1099-int and div are straightforward However instead of a section labeled 1099-b "I have a section labeled Summary of 2017 Proceeds From Broker and Barter Exchange Transactions" It is not labeled as a 1099-b which confuses me. There is a proceeds and ...
by Wagnerjb
Thu Feb 22, 2018 4:04 pm
Forum: Investing - Help with Personal Investments
Topic: AMT in Turbo Tax for Mortgage Interest
Replies: 6
Views: 858

Re: AMT in Turbo Tax for Mortgage Interest

If you paid any AMT, the amount would be reflected on line 45. You say that you didn't pay any AMT, but the number on line 45 was updated. Which is it?

Did TurboTax generate a form 6251?
by Wagnerjb
Wed Feb 21, 2018 9:13 pm
Forum: Personal Finance (Not Investing)
Topic: Child's tax return question / parents form 8615
Replies: 23
Views: 1712

Re: Child's tax return question / parents form 8615

If the 1099B shows both gross sales proceeds and "basis reported to IRS", it is wishful thinking to believe the IRS will calculate the net gains or losses from all such reported sales, and add that net income or loss to the interest and dividend income in order to determine if the taxpayer meets th...
by Wagnerjb
Wed Feb 21, 2018 5:40 pm
Forum: Personal Finance (Not Investing)
Topic: Child's tax return question / parents form 8615
Replies: 23
Views: 1712

Re: Child's tax return question / parents form 8615

Thank you. To confirm, I thought that if someone (i.e. my daughter) has a 1099 B, that they have to file their own return (regardless of the amount). I could be totally wrong here. If I don't need to file a return for her, would I instead report her dividends and cap gains on my return? And even if...
by Wagnerjb
Wed Feb 21, 2018 5:36 pm
Forum: Personal Finance (Not Investing)
Topic: Child's tax return question / parents form 8615
Replies: 23
Views: 1712

Re: Child's tax return question / parents form 8615

If the 1099B shows both gross sales proceeds and "basis reported to IRS", it is wishful thinking to believe the IRS will calculate the net gains or losses from all such reported sales, and add that net income or loss to the interest and dividend income in order to determine if the taxpayer meets th...
by Wagnerjb
Wed Feb 21, 2018 5:32 pm
Forum: Personal Finance (Not Investing)
Topic: Child's tax return question / parents form 8615
Replies: 23
Views: 1712

Re: Child's tax return question / parents form 8615

The daughter does not need to file Form 8615, but she may need to file a tax return depending on the amount of the 1099B proceeds that generated the $200 capital loss. For example, if she sold a stock or fund for $15,000 for a $200 loss, the IRS will assume a $15,000 short term gain unless a tax re...
by Wagnerjb
Wed Feb 21, 2018 11:49 am
Forum: Personal Finance (Not Investing)
Topic: Child's tax return question / parents form 8615
Replies: 23
Views: 1712

Re: Child's tax return question / parents form 8615

Thank you. To confirm, I thought that if someone (i.e. my daughter) has a 1099 B, that they have to file their own return (regardless of the amount). I could be totally wrong here. If I don't need to file a return for her, would I instead report her dividends and cap gains on my return? And even if...
by Wagnerjb
Wed Feb 21, 2018 11:08 am
Forum: Personal Finance (Not Investing)
Topic: Child's tax return question / parents form 8615
Replies: 23
Views: 1712

Re: Child's tax return question / parents form 8615

First of all, your daughter does not need to file a tax return. And her income is not to be included in the calculations of your son's Kiddie Tax. The forms ask for the income of all of the children that need to file a form 8615 . Your daughter doesn't need to file at all, and thus no 8615 either. Y...
by Wagnerjb
Tue Feb 20, 2018 8:30 am
Forum: Investing - Theory, News & General
Topic: Cap Gain Tax Q 2018 tax year
Replies: 4
Views: 550

Re: Cap Gain Tax Q 2018 tax year

And the capital gains must be long-term, not short-term.
by Wagnerjb
Sun Feb 18, 2018 10:16 pm
Forum: Personal Finance (Not Investing)
Topic: Help! Are we stuck paying the tax/penalty/interest on this 529 withdrawal?
Replies: 23
Views: 2304

Re: Help! Are we stuck paying the tax/penalty/interest on this 529 withdrawal?

I'd disown the tax guy's response, say you're amending back to what you filed originally, and include a simple statement that all 1099-Q distributions were spent on qualified expenses and maybe attach a brief statement of how it was spent (dates and amounts of payments and for what). Three years ag...
by Wagnerjb
Sun Feb 18, 2018 3:37 pm
Forum: Personal Finance (Not Investing)
Topic: Help! Are we stuck paying the tax/penalty/interest on this 529 withdrawal?
Replies: 23
Views: 2304

Re: Help! Are we stuck paying the tax/penalty/interest on this 529 withdrawal?

To my surprise, we've never received IRS letters. But with our income too high for education credits or deductions and my son having a full-tuition scholarship, 529 withdrawals were low and always made to him, not us. My own theory is that when there's a match of both a 1099-Q but no 1098-T for the...
by Wagnerjb
Sun Feb 18, 2018 2:21 pm
Forum: Personal Finance (Not Investing)
Topic: How to qualify wife for ACA subsidy in 2018
Replies: 18
Views: 1828

Re: How to qualify wife for ACA subsidy in 2018

Flora wrote:
Sun Feb 18, 2018 9:51 am
Consider charging less rent by 2k in order to save almost 12k with the subsidy, thereby netting 10k.
How about just asking your tenant to delay the rent payments for the last month or two of 2018 (as many as necessary), paying you the back rent in January 2019.

Best wishes.
by Wagnerjb
Sun Feb 18, 2018 9:29 am
Forum: Investing - Help with Personal Investments
Topic: Is a Brokerage "Redemption Fee" tax deductible?
Replies: 14
Views: 981

Re: Is a Brokerage "Redemption Fee" tax deductible?

I see. Thanks, Andy. I suspect part of the reason I've never seen anything like that at TaxAide is that, as you know, few of our clients keep records at that level of detail. That information was at the very back of a 16 page broker 1099 statement, although the fees were summarized in a table at th...
by Wagnerjb
Sun Feb 18, 2018 9:06 am
Forum: Personal Finance (Not Investing)
Topic: Question About The Kiddie Tax (Form 8615)
Replies: 2
Views: 413

Re: Question About The Kiddie Tax (Form 8615)

I looked at Form 8615 and can't quite figure this out. If the parent has dividend and capital gains income, how does 8615 figure that into the "Kiddie Tax"? It appears to just lump the child's unearned income onto the parent's taxable income, with no regard to the nature of the parent's income. I a...
by Wagnerjb
Sun Feb 18, 2018 8:53 am
Forum: Personal Finance (Not Investing)
Topic: Help! Are we stuck paying the tax/penalty/interest on this 529 withdrawal?
Replies: 23
Views: 2304

Re: Help! Are we stuck paying the tax/penalty/interest on this 529 withdrawal?

I paid the school in 2015 for spring 2016 tuition/fees, etc. I have since become more familiar with the 529 rules and realize now that I'm supposed to withdraw and pay in the same calendar year that the expenses are incurred. The crazy thing is that I pre-paid the 2016 tuition and fees on 12/31/15!...
by Wagnerjb
Sun Feb 18, 2018 8:43 am
Forum: Investing - Help with Personal Investments
Topic: Is a Brokerage "Redemption Fee" tax deductible?
Replies: 14
Views: 981

Re: Is a Brokerage "Redemption Fee" tax deductible?

The Scottrade 1099 statement had two "miscellaneous fees" of $20 each for two stocks that my brother owns. One was sold in 2017 and I applied the $20 adjustment just exactly as you mentioned. That sale was a short-term "covered" sale, with cost basis reported to the IRS. The other stock wasn't sold...
by Wagnerjb
Sat Feb 17, 2018 10:49 am
Forum: Investing - Help with Personal Investments
Topic: Is a Brokerage "Redemption Fee" tax deductible?
Replies: 14
Views: 981

Re: Is a Brokerage "Redemption Fee" tax deductible?

welderwannabe is correct, depending on the circumstances. The important issue is that the total sale proceeds reported to the IRS by the broker match what the taxpayer reports to the IRS. If the broker reports GROSS proceeds and doesn't include the redemption fee in cost basis, taxpayer should repo...
by Wagnerjb
Sat Feb 17, 2018 9:31 am
Forum: Investing - Help with Personal Investments
Topic: Is a Brokerage "Redemption Fee" tax deductible?
Replies: 14
Views: 981

Re: Is a Brokerage "Redemption Fee" tax deductible?

welderwannabe wrote:
Sat Feb 17, 2018 7:40 am
The fees would increase your cost basis, reducing your 'profit' if any or increasing your loss.
According to the IRS publication that Livesoft linked, a redemption fee reduces your sales proceeds.
by Wagnerjb
Fri Feb 16, 2018 6:45 pm
Forum: Personal Consumer Issues
Topic: Should I be paying $1300/yr. for under/uninsured motorist protection?
Replies: 99
Views: 8720

Re: Should I be paying $1300/yr. for under/uninsured motorist protection?

What if he had been very, very seriously injured? Our medical insurance would have paid. Suppose you have an HDHP with a $6K deductible - who would pay that? Suppose you needed months in rehab - How much would your health insurance pay. Suppose you suffer a permanent disability as a result of the a...
by Wagnerjb
Fri Feb 16, 2018 6:43 pm
Forum: Personal Consumer Issues
Topic: Should I be paying $1300/yr. for under/uninsured motorist protection?
Replies: 99
Views: 8720

Re: Should I be paying $1300/yr. for under/uninsured motorist protection?

Let's say you have a passenger in your car, and that passenger is permanently disabled in an accident that was not your fault. Your insurance will cover your passenger's medical bills up to a certain point (assuming you pay for that coverage), but it will not cover lost income, pain and suffering, ...
by Wagnerjb
Fri Feb 16, 2018 12:44 pm
Forum: Personal Consumer Issues
Topic: Should I be paying $1300/yr. for under/uninsured motorist protection?
Replies: 99
Views: 8720

Re: Should I be paying $1300/yr. for under/uninsured motorist protection?

dm200 wrote:
Fri Feb 16, 2018 12:21 pm


What if he had been very, very seriously injured?
Our medical insurance would have paid.
by Wagnerjb
Fri Feb 16, 2018 11:19 am
Forum: Personal Consumer Issues
Topic: Should I be paying $1300/yr. for under/uninsured motorist protection?
Replies: 99
Views: 8720

Re: Should I be paying $1300/yr. for under/uninsured motorist protection?

I don't think I need this - any advice on cutting this from our policy? I canceled my under/uninsured motorist coverage quite a few years ago. My logic was that a) I have good medical coverage for my family and b) Comprehensive (or is it Collision?) will cover my car if it is damaged. A few months ...
by Wagnerjb
Thu Feb 15, 2018 9:15 am
Forum: Personal Finance (Not Investing)
Topic: Employer Seems Clueless About HSAs and Taxes
Replies: 4
Views: 580

Re: Employer Seems Clueless About HSAs and Taxes

Keep in mind that the amount withheld from your paycheck is actually referred to as "employer contribution" by the IRS. This was very confusing to me as well. If the amounts withheld from your paycheck are properly excluded from your W2 wages, then I believe you should input the HSA contributions as...
by Wagnerjb
Wed Feb 14, 2018 2:57 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage qualifying when retired
Replies: 6
Views: 980

Re: Mortgage qualifying when retired

Rick: I will share with you my experience and maybe it will help you see what might happen in your case. I built a home right before I retired and I qualified for the mortgage with my income. However, about 18 months after I retired I refinanced the mortgage. It wasn't nearly as easy to qualify at i...
by Wagnerjb
Mon Feb 12, 2018 9:37 pm
Forum: Personal Finance (Not Investing)
Topic: Question for TaxAide Volunteers
Replies: 10
Views: 1166

Re: Question for TaxAide Volunteers

I was working at one of our sites on Saturday and was surprised to be able to get carryover data on taxpayers who had been to another site (different SIDN and EFIN) last year. I am pretty sure that happened for a taxpayer I handled last week. My take is that the "global" carryover of data is active...
by Wagnerjb
Sat Feb 10, 2018 3:54 pm
Forum: Investing - Help with Personal Investments
Topic: has anyone here tried to engineer a low-income-generating portfolio?
Replies: 18
Views: 1786

Re: has anyone here tried to engineer a low-income-generating portfolio?

Fred: first of all, the strategy makes sense in general and I see nothing wrong with “managing” one’s income to optimize government benefits. We all do this. As a matter of fact, I am “managing” my 26-year old college student’s income to get the same full ACA subsidy that you are focused on. However...
by Wagnerjb
Sat Feb 10, 2018 1:46 pm
Forum: Investing - Help with Personal Investments
Topic: has anyone here tried to engineer a low-income-generating portfolio?
Replies: 18
Views: 1786

Re: has anyone here tried to engineer a low-income-generating portfolio?

Fred: a few questions for clarification of your situation. Should we assume the $5MM portfolio is entirely in after-tax accounts? Should we assume you and Wilma won't be drawing Social Security during this strategy? Should we assume that you and Wilma are not subject to RMD's from any IRA or 401k du...
by Wagnerjb
Sat Feb 10, 2018 10:59 am
Forum: Investing - Theory, News & General
Topic: Funds without dividends
Replies: 17
Views: 1868

Re: Funds without dividends

Look for funds with the words "tax managed" in the fund name. Vanguard has several of them. I think (but I'm not sure) those are mostly managed through minimizing capital gains (although I assume they probably try to minimize dividends as well). But the yield is still not that much better than your...
by Wagnerjb
Thu Feb 08, 2018 8:56 am
Forum: Investing - Help with Personal Investments
Topic: Previously Incorrect Form 8606
Replies: 2
Views: 343

Re: Previously Incorrect Form 8606

I would amend the 2016 tax return if you determine it was incorrect. I had a similar issue with an incorrect form 8606 a few years ago (prepared by KPMG) and I insisted that they amend the return. Like your situation, there was no bottom line tax impact of the error.....but I did not want this to po...
by Wagnerjb
Wed Feb 07, 2018 11:31 am
Forum: Personal Finance (Not Investing)
Topic: would this be considered a wash sale?
Replies: 6
Views: 492

Re: would this be considered a wash sale?

Using the example from Scottrade, if you sell both of the lots you bought there would be no wash sale. I am not positive of the answer here, but I wonder if you also sold the shares in your wife's Roth whether there would be no wash sale? Obviously, selling the shares in your wife's Roth has no tax ...
by Wagnerjb
Tue Feb 06, 2018 2:50 pm
Forum: Personal Finance (Not Investing)
Topic: Accelerated RSU vesting, FICA taxes
Replies: 9
Views: 2556

Re: Accelerated RSU vesting, FICA taxes

I am in this predicament. A large number of shares just vested because I recently turned 55(retirement age) Even though they vested they will not actually be distributed. The will distribute over the next 3 years. In addition to paying Medicare and the surtax I have to pay almost 5 % in local taxes...