Search found 6490 matches

by kaneohe
Sun May 17, 2020 3:14 pm
Forum: Personal Investments
Topic: Return of capital/principal in taxable account question
Replies: 8
Views: 495

Re: Return of capital/principal in taxable account question

don't forget that the ultimate goal is to maximize after-tax returns , not to keep tax at zero. Would you rather have an account that tripled and that you would pay taxes on or an account that didn't gain anything and that you would pay 0 taxes on.
by kaneohe
Sun May 17, 2020 11:38 am
Forum: Personal Investments
Topic: Return of capital/principal in taxable account question
Replies: 8
Views: 495

Re: Return of capital/principal in taxable account question

your numbers are confusing...........did you mean lump sum 20K? Then after 2K/mo. additional contributions you would have invested 34K. If your value is now 36K, then if you sell 34K your gain will depends on your cost basis method. If you sell specific lots, you can pick the higher cost basis lots ...
by kaneohe
Sat May 16, 2020 9:39 pm
Forum: Personal Investments
Topic: tax types or avoiding them on dividends
Replies: 7
Views: 569

Re: tax types or avoiding them on dividends

Take a look at the 1099-DIV https://www.irs.gov/pub/irs-pdf/f1099div.pdf Note the 1st 2 entries: 1a)Total ordinary dividends; 1b)Qualified dividends They are not totally independent of each other; 1b) is contained in 1a) so the total ordinary dividends consists of qualified dividends and another com...
by kaneohe
Sat May 16, 2020 6:01 pm
Forum: Investing - Theory, News & General
Topic: What's the point of TLH when you already have booked losses?
Replies: 35
Views: 2104

Re: What's the point of TLH when you already have booked losses?

Don't forget the time value of $$. If you harvest and only use 3K against ordinary income , in the 24% bracket
you are saving and hopefully reinvesting the $720 savings each which can add up over a period of time.
by kaneohe
Sat May 16, 2020 5:32 pm
Forum: Investing - Theory, News & General
Topic: What's the point of TLH when you already have booked losses?
Replies: 35
Views: 2104

Re: What's the point of TLH when you already have booked losses?

...................................... +1 Benefit of additional TLH. In year harvested, CLs offset CGs dollar-for-dollar, $3K/yr limit does not apply. So if you normally receive dividends of $10K/yr in CGs, a $10K TLH will offset the CGs dollar-for-dollar. Then $3K of your $100K carryover loss can ...
by kaneohe
Sat May 16, 2020 4:53 pm
Forum: Investing - Theory, News & General
Topic: What's the point of TLH when you already have booked losses?
Replies: 35
Views: 2104

Re: What's the point of TLH when you already have booked losses?

What's the point of not harvesting more losses? Only one I can think of is wanting to leave assets to your heirs with a higher basis. ............................................................ Don't inherited assets get a stepup in basis to date of death value ? so no gain if sold then. Even if b...
by kaneohe
Wed May 13, 2020 6:52 pm
Forum: Investing - Theory, News & General
Topic: Vanguard 2020 distribution schedule
Replies: 9
Views: 1001

Re: Vanguard 2020 distribution schedule

There are a "few" funds on that list. Never realized that.
by kaneohe
Mon May 11, 2020 6:16 pm
Forum: Personal Investments
Topic: Ally Bank 1.25% savings .50 Moneymarket
Replies: 26
Views: 3729

Re: Ally Bank 1.25% savings .50 Moneymarket

hope you're right (about the little later) . I have funds fleeing HYS drop from 1.5% to 1.3% to what I thought was Ally 1.5% (but now 1.25%). Need a couple more days to get into NP CD. You can open the account right now with $0 and as long as the funds post before the 10 day guarantee window closes...
by kaneohe
Mon May 11, 2020 3:56 pm
Forum: Personal Investments
Topic: Ally Bank 1.25% savings .50 Moneymarket
Replies: 26
Views: 3729

Re: Ally Bank 1.25% savings .50 Moneymarket

.................................................. As expected. If it was like the last rate drop the no penalty CDs will also fall a little later. hope you're right (about the little later) . I have funds fleeing HYS drop from 1.5% to 1.3% to what I thought was Ally 1.5% (but now 1.25%). Need a co...
by kaneohe
Mon May 11, 2020 3:51 pm
Forum: Personal Finance (Not Investing)
Topic: Deducting Medicare insurance premiums
Replies: 25
Views: 1538

Re: Deducting Medicare insurance premiums

is there such a thing as a standard deduction for OH? a brief search didn't find one....if true,then you need to itemize but may run into % AGI floor limitations similar to Fed.
by kaneohe
Mon May 11, 2020 12:58 pm
Forum: Personal Finance (Not Investing)
Topic: Problems obtaining a free annual Equifax credit report online
Replies: 56
Views: 34850

Re: Problems obtaining a free annual Equifax credit report online

....................................................... I then tried requesting the Equifax report by phone at 877-322-8228 but nothing showed up in the mail. I don't know if there is some sort of error in Equifax's system or if they are just not mailing paper credit reports during the COVID-19 cri...
by kaneohe
Mon May 11, 2020 9:29 am
Forum: Personal Finance (Not Investing)
Topic: 2020 tax forecast
Replies: 8
Views: 758

Re: 2020 tax forecast

since you already know that the 110% safe harbor(based on last yr) will be way too much, your only choice is the 90% of current yr safe harbor. Since there is much more uncertainty on current yr data, all you can do is forecast and forecast and forecast again each quarter and make changes to your pa...
by kaneohe
Sat May 09, 2020 4:27 pm
Forum: Personal Finance (Not Investing)
Topic: 2020 Tax Credit: Stimulus & taxable Social Security
Replies: 9
Views: 533

Re: 2020 Tax Credit: Stimulus & taxable Social Security

you mentioned earned income.........any way to contribute to 401K or similar to reduce your reported income?
by kaneohe
Sat May 09, 2020 11:43 am
Forum: Personal Finance (Not Investing)
Topic: 2020 Tax Credit: Stimulus & taxable Social Security
Replies: 9
Views: 533

Re: 2020 Tax Credit: Stimulus & taxable Social Security

https://www.irs.gov/pub/irs-pdf/f1040.pdf

if you look at the 1040, you can see how AGI is calculated.........
by kaneohe
Fri May 08, 2020 3:44 pm
Forum: Personal Finance (Not Investing)
Topic: Are Qualified Dividends included in the MAGI calculation for ACA subsidy???
Replies: 14
Views: 1279

Re: Are Qualified Dividends included in the MAGI calculation for ACA subsidy???

Qualified dividends are a subset of total dividends (Line 3b on the 1040 I believe). Line 3b is included in AGI and therefore MAGI. But, line 3b is -not- included in the AGI calculation, so Qualified Dividends are not in the MAGI number either. Look at your 1040 and do the math. 7a Other income fro...
by kaneohe
Thu May 07, 2020 10:10 am
Forum: Personal Finance (Not Investing)
Topic: Understanding Adjusted Gross Income
Replies: 24
Views: 1955

Re: Understanding Adjusted Gross Income

bg5 wrote:
Thu May 07, 2020 7:17 am
We do contribute to our pensions but its not tax deffered
Is this pension separate from the 403b?
by kaneohe
Thu May 07, 2020 10:06 am
Forum: Personal Investments
Topic: Rollover question
Replies: 4
Views: 156

Re: Rollover question

so no large immediate impact but over time, Roth will be better and if/when tax rates go back up in 2025?/2026 then you be better off having converted now.
by kaneohe
Thu May 07, 2020 9:19 am
Forum: Personal Investments
Topic: Rollover question
Replies: 4
Views: 156

Re: Rollover question

what is your marginal tax rate for the conversion vs your heirs marginal tax rate for ordinary income?
by kaneohe
Thu May 07, 2020 7:30 am
Forum: Personal Finance (Not Investing)
Topic: Understanding Adjusted Gross Income
Replies: 24
Views: 1955

Re: Understanding Adjusted Gross Income

We do contribute to our pensions but its not tax deffered this might be a matter of how you think about it. The only 403b s I know reduced your reported salary so offered tax deferred savings. For example if your total salary was 100K and you contributed 20K to 401K, your federal reported gross inc...
by kaneohe
Wed May 06, 2020 6:08 pm
Forum: Personal Investments
Topic: Traditional IRA Contribution Limit Odd Situation
Replies: 7
Views: 305

Re: Traditional IRA Contribution Limit Odd Situation

https://www.irs.gov/retirement-plans/ir ... ion-limits

it might help if you provided some key info that's required:

you can always contribute if you have W2 income or equivalent but whether you can deduct is the question.
by kaneohe
Wed May 06, 2020 8:23 am
Forum: Personal Finance (Not Investing)
Topic: Understanding Adjusted Gross Income
Replies: 24
Views: 1955

Re: Understanding Adjusted Gross Income

Cyclesafe wrote:
Wed May 06, 2020 7:56 am
When calculating "AGI" one must always consider the purpose it is being calculated for. The definition changes with different applications.

It's best to use the appropriate tax form as a guide. The devil in in the details...
perhaps you thinking of MAGI? AGI is unique is my understanding.
by kaneohe
Sat May 02, 2020 5:06 pm
Forum: Investing - Theory, News & General
Topic: How are mutual funds fees calculated if the year is negative?
Replies: 18
Views: 1876

Re: How are mutual funds fees calculated if the year is negative?

aren't the fees typically on assets, not gains? so they always win; and sometimes you do.
by kaneohe
Sat May 02, 2020 10:13 am
Forum: Personal Investments
Topic: Question on how RMDs affect a spending plan in retirement.
Replies: 16
Views: 1219

Re: Question on how RMDs affect a spending plan in retirement.

https://www.irahelp.com/slottreport/taking-non-cash-required-distributions-your-ira "When individuals take withdrawals from their IRAs, it's usually a cash withdrawal. By cash, we don't mean dollar bills; instead it's usually done by issuing a check. But it's possible to take a non-cash withdrawal ...
by kaneohe
Sat May 02, 2020 9:00 am
Forum: Personal Finance (Not Investing)
Topic: Possible cash withdrawal error by bank?
Replies: 37
Views: 1692

Re: Possible cash withdrawal error by bank?

Perhaps consider opening another account with lower balance where such an error would be more obvious. OP said here (https://www.bogleheads.org/forum/viewtopic.php?f=2&t=291781#p4777023) that he already has about ten accounts. What occurred here is the risk you run when instead of reconciling bank ...
by kaneohe
Sat May 02, 2020 8:32 am
Forum: Personal Finance (Not Investing)
Topic: Possible cash withdrawal error by bank?
Replies: 37
Views: 1692

Re: Possible cash withdrawal error by bank?

One issue is that your normal balance is quite large so it is easy to see how a 2K discrepancy would be missed. Perhaps consider opening another account with lower balance where such an error would be more obvious Well, this account is/was paying over 2% interest so the $50 or so interest a month w...
by kaneohe
Sat May 02, 2020 8:14 am
Forum: Personal Finance (Not Investing)
Topic: Possible cash withdrawal error by bank?
Replies: 37
Views: 1692

Re: Possible cash withdrawal error by bank?

Feb 28, 2019 and today is May 2, 2020...... and you are just figuring out a $1,900 error occurred more than a year ago. If you spent 5 minutes a month to eyeball accounts from bank to credit cards this stuff would not happen. I repeat, I have a credit card payment due every 4th that I schedule a we...
by kaneohe
Fri May 01, 2020 10:17 pm
Forum: Personal Investments
Topic: QCD RMD and Roth Conversion
Replies: 9
Views: 530

Re: QCD RMD and Roth Conversion

........................................................... I seem to be getting the idea from other forum postings that the QCD alone might still be taxable somehow. ..................................................... I believe you are correct in your beliefs. Can you show some examples of why o...
by kaneohe
Fri May 01, 2020 9:26 pm
Forum: Personal Finance (Not Investing)
Topic: Problems obtaining a free annual Equifax credit report online
Replies: 56
Views: 34850

Re: Problems obtaining a free annual Equifax credit report online

....................................................... I then tried requesting the Equifax report by phone at 877-322-8228 but nothing showed up in the mail. I don't know if there is some sort of error in Equifax's system or if they are just not mailing paper credit reports during the COVID-19 cri...
by kaneohe
Fri May 01, 2020 12:33 pm
Forum: Personal Investments
Topic: Question about Mutual Fund Taxes
Replies: 12
Views: 608

Re: Question about Mutual Fund Taxes

[.......................................................................... Now I'm confused, these seem to be conflicting answers or I'm missing something obvious. I'm looking at VSTAX if it helps. I believe what you are missing is that we are talking about different types of CGs........... I beli...
by kaneohe
Fri May 01, 2020 10:46 am
Forum: Personal Investments
Topic: Question about Mutual Fund Taxes
Replies: 12
Views: 608

Re: Question about Mutual Fund Taxes

Please bear with me as I'm fairly new to all of this, and I did Google before I ask. I have been told that if I were to buy in to a mutual fund now, I would be responsible for capital gains for my share of the fund over the entire year. Is that true, or would I only be responsible for the taxable g...
by kaneohe
Thu Apr 30, 2020 9:57 am
Forum: Personal Investments
Topic: Does cost basis/disposal order method matter for Roth IRA?
Replies: 3
Views: 221

Re: Does cost basis/disposal order method matter for Roth IRA?

The usual cost basis methods for taxable accounts mean nothing for the Roth. The Roth cost basis that matters are your contribution basis (how much you directly contributed) and your conversion basis (how much you converted from TIRA to Roth). The ordering rules are that you withdraw from your contr...
by kaneohe
Tue Apr 28, 2020 6:11 pm
Forum: Personal Investments
Topic: Cost basis during Roth conversion
Replies: 31
Views: 1853

Re: Cost basis during Roth conversion

................................................................ Long winded preamble but my question is if you get sell quotes for the bonds during the day of the transfer, could you use this value instead of the end of day 'guess'. Would you need to convince the brokerage house to make this chang...
by kaneohe
Tue Apr 28, 2020 2:12 pm
Forum: Personal Investments
Topic: RMDs
Replies: 13
Views: 901

Re: RMDs

In addition to the direct savings on not having to pay tax on the RMDs, it is possible that there are associated benefits. If you are paying NIIT because the RMDs raise your income, you may reduce/eliminate that. Same with
IRMAA if you are taking SS.
by kaneohe
Tue Apr 28, 2020 12:58 pm
Forum: Personal Investments
Topic: Cost basis during Roth conversion
Replies: 31
Views: 1853

Re: Cost basis during Roth conversion

So just to confirm, the price at the moment I transfer an in-kind stock from my traditional IRA to my Roth, that becomes my cost basis price. Is that correct? It does make a difference if the stock goes up (or down) after the transfer. Thanks! As Alan S. explained , your Roth conversion basis is th...
by kaneohe
Tue Apr 28, 2020 8:05 am
Forum: Personal Investments
Topic: Help me understand brokered CDs
Replies: 17
Views: 713

Re: Help me understand brokered CDs

.................................................................. Yes I believe you are correct. It's confusing because their listings have a single column labeled APY/YTM. The footnote says it's APY for new issues and YTM for secondary. still I believe that APY/YTM are similar in that they are an...
by kaneohe
Tue Apr 28, 2020 7:45 am
Forum: Personal Investments
Topic: Help me understand brokered CDs
Replies: 17
Views: 713

Re: Help me understand brokered CDs

https://www.schwab.com/public/schwab/investing/accounts_products/investment/bonds/certificates_of_deposit you might want to talk to the Schwab Fixed Income folks to see if your understanding is correct. Maturity Ranges ( 4/28/2020 ) Rates up to 1-3 Month CDs................ 0.35 %APY their current ...
by kaneohe
Mon Apr 27, 2020 1:15 pm
Forum: Investing - Theory, News & General
Topic: Reporting cap gains on non-covered shares to the IRS
Replies: 7
Views: 419

Re: Reporting cap gains on non-covered shares to the IRS

since you used average cost basis when you sold, there's a fair chance that the VG may be ok. How does it compare w/ the value today? might you be in the 0% CG gain tax bracket for at least some amount?
by kaneohe
Mon Apr 27, 2020 10:42 am
Forum: Investing - Theory, News & General
Topic: Reporting cap gains on non-covered shares to the IRS
Replies: 7
Views: 419

Re: Reporting cap gains on non-covered shares to the IRS

Looking at the cost basis screen, I see that some funds that I have held for a long time that have big cap gains also have what are called "Noncovered shares". This is what Vanguard says about noncovered shares: Vanguard will report cost basis information to the IRS only for "covered shares," meani...
by kaneohe
Sun Apr 26, 2020 11:02 pm
Forum: Personal Consumer Issues
Topic: Where has the all good foil gone?
Replies: 20
Views: 1993

Re: Where has the all good foil gone?

call their toll-free number (often on the box). These companies appreciate feedback and will often reward you to compensate for your disappointment esp. if the call is civil.
by kaneohe
Sun Apr 26, 2020 10:48 pm
Forum: Personal Finance (Not Investing)
Topic: Estimated Taxes, RMD, and COVID-19 Relief (CARES) Act
Replies: 5
Views: 422

Re: Estimated Taxes, RMD, and COVID-19 Relief (CARES) Act

1. For folks who are taking advantage of the CARES Act - how are you calculating your 2020 Estimated Taxes ? See US and state income tax calculator - Bogleheads.org for some ways. 2. I am really hung-up on the discrepancy between what I calculated by hand and what TT is showing. Is there a signific...
by kaneohe
Sat Apr 25, 2020 6:51 pm
Forum: Personal Finance (Not Investing)
Topic: IRS Publication 590-B Example - IRA Withdrawal with QCD and Nondeductible Contributions
Replies: 19
Views: 1131

Re: IRS Publication 590-B Example - IRA Withdrawal with QCD and Nondeductible Contributions

I guess we'll have to wait for Alan S. to interpret. I read instructions on form , then instructions in instruction sheet so typically avoid the trouble awaiting in Pubs (ignorance is bliss :happy ). I know Alan has, from day 1, always emphasized that the QCDs come from taxable first. I remembered t...
by kaneohe
Sat Apr 25, 2020 6:21 pm
Forum: Personal Finance (Not Investing)
Topic: IRS Publication 590-B Example - IRA Withdrawal with QCD and Nondeductible Contributions
Replies: 19
Views: 1131

Re: IRS Publication 590-B Example - IRA Withdrawal with QCD and Nondeductible Contributions

knowing the answer in advance :happy, I got basically the same answer from the 8606. The Dec 31 value basically would be a tweak on the calculation. If the value of the remaining IRA had gone up, that would not be part of the basis so part of the 5K distribution might be taxable. If the IRA value c...
by kaneohe
Sat Apr 25, 2020 6:10 pm
Forum: Personal Finance (Not Investing)
Topic: IRS Publication 590-B Example - IRA Withdrawal with QCD and Nondeductible Contributions
Replies: 19
Views: 1131

Re: IRS Publication 590-B Example - IRA Withdrawal with QCD and Nondeductible Contributions

Line 7 for the 8606:

7 Enter your distributions from traditional, SEP, and SIMPLE IRAs in 2019. Do
not include .................................., qualified charitable distributions

since distributions were 25K but QCD was 20K, why wouldn't Line 7 be 5K?
by kaneohe
Sat Apr 25, 2020 5:44 pm
Forum: Personal Finance (Not Investing)
Topic: IRS Publication 590-B Example - IRA Withdrawal with QCD and Nondeductible Contributions
Replies: 19
Views: 1131

Re: IRS Publication 590-B Example - IRA Withdrawal with QCD and Nondeductible Contributions

knowing the answer in advance :happy , I got basically the same answer from the 8606. The Dec 31 value basically would be a tweak on the calculation. If the value of the remaining IRA had gone up, that would not be part of the basis so part of the 5K distribution might be taxable.
by kaneohe
Fri Apr 24, 2020 8:34 pm
Forum: Personal Finance (Not Investing)
Topic: RMD waived for 2020. Alternate strategy
Replies: 14
Views: 1081

Re: RMD waived for 2020. Alternate strategy

My strategy is just to take the tax reduction due to my RMD being waived. That's what we'll do with Mom's non-RMD; i.e., do nothing. (Or rather that's what we'll do for most of it, since she has several tax deferred accounts, some of which have automatic RMDs. It's not worth the bother to try to un...
by kaneohe
Fri Apr 24, 2020 4:29 pm
Forum: Personal Finance (Not Investing)
Topic: American Opportunity Tax Credit (AOTC) for student
Replies: 7
Views: 452

Re: American Opportunity Tax Credit (AOTC) for student

............................................................................... But I have also read sources online that make it sound like I should start with my $2,500 education tax credit, subtract my $1,260 in taxes owed, and then take 40% of the remaining $1,240 as a ~$500 addition to my refun...
by kaneohe
Fri Apr 24, 2020 8:15 am
Forum: Personal Investments
Topic: Long Term Capital Gains - RSUs - Sanity check
Replies: 1
Views: 144

Re: Long Term Capital Gains - RSUs - Sanity check

................................................................. 537 RSU shares (all between $36-$80 cost basis per share), resulting in $32k in total cost, all granted more than one year ago. Ticker price now is around $140. 537 * $140 = $75,180. Long term capital gains should be 15% = $11,277 in...
by kaneohe
Tue Apr 21, 2020 8:25 am
Forum: Personal Investments
Topic: Carrying forward and tracking ST and LT losses to future years
Replies: 3
Views: 266

Re: Carrying forward and tracking ST and LT losses to future years

https://www.irs.gov/pub/irs-pdf/i1040sd.pdf

see p. D12
The capital loss carryover wksht from the Sch D instructions is used to determine what to use. You should find that
Chip's answer is correct ........that the 3K against ordinary income comes from the ST losses first.
by kaneohe
Mon Apr 20, 2020 4:47 pm
Forum: Personal Investments
Topic: Best way to sell Dodge & Cox Mutual Fund, but not be out of the market?
Replies: 20
Views: 1357

Re: Best way to sell Dodge & Cox Mutual Fund, but not be out of the market?

...................................................... My goal was to sell this mutual fund and then use funds to buy a different mutual fund, but Fidelity is saying because it's not in the same fund family, I have to do it on different days. Sell one day, let funds clear then buy on a different da...