Search found 673 matches

by SouthernCPA
Wed Sep 30, 2015 9:10 pm
Forum: Personal Finance (Not Investing)
Topic: Take a mortgage on new home?
Replies: 6
Views: 1167

Re: Take a mortgage on new home?

If you can afford to pay cash then DO IT! And this is coming from a banker. Your CPA is only looking at how to minimize taxes, no how to maximize your wealth. It makes zero sense to pay $100 in interest to a lender just to be able to save $33-$39 on taxes. You're still coming out behind. You are 66...
by SouthernCPA
Wed Sep 30, 2015 11:41 am
Forum: Personal Finance (Not Investing)
Topic: Cheapest way to form an LLC
Replies: 16
Views: 2267

Re: Cheapest way to form an LLC

I agree with dulocracy, do not do this without an attorney. There is just too much that can go wrong.

Also, please please please, if you will have a partner in the business - have an attorney write your operating agreement....
by SouthernCPA
Tue Sep 29, 2015 11:06 pm
Forum: Personal Finance (Not Investing)
Topic: how to sell half value of my house to fiance or spouse
Replies: 31
Views: 4353

Re: how to sell half value of my house to fiance or spouse

My comment was directed to the comment about her possibly having to pay gift tax on the amount above 14k I guess I'm not following you...if she gave him the money for her share of the house BEFORE they get married, they would not have the marriage exclusion and she would have to pay gift taxes on t...
by SouthernCPA
Tue Sep 29, 2015 10:53 pm
Forum: Personal Finance (Not Investing)
Topic: Cheapest way to form an LLC
Replies: 16
Views: 2267

Re: Cheapest way to form an LLC

It's $50 to file the appropriate papers with the Secretary of State in Mississippi. That said, I would talk to a lawyer if you have any liability questions. Regarding selling the LLC interest later on as being "capital gains" or "ordinary income" as mentioned above, there are more peices to that puz...
by SouthernCPA
Tue Sep 29, 2015 10:35 pm
Forum: Personal Finance (Not Investing)
Topic: how to sell half value of my house to fiance or spouse
Replies: 31
Views: 4353

Re: how to sell half value of my house to fiance or spouse

I can only comment on California, which is a community property state. After you are married, you can file a quitclaim deed. You simply change the name on the property from yours to both. Because you're married, there is no gift involved so there's no need to file any tax forms. (Spouses do not "gi...
by SouthernCPA
Tue Sep 29, 2015 5:33 pm
Forum: Personal Finance (Not Investing)
Topic: how to sell half value of my house to fiance or spouse
Replies: 31
Views: 4353

Re: how to sell half value of my house to fiance or spouse

My comment was directed to the comment about her possibly having to pay gift tax on the amount above 14k I guess I'm not following you...if she gave him the money for her share of the house BEFORE they get married, they would not have the marriage exclusion and she would have to pay gift taxes on t...
by SouthernCPA
Tue Sep 29, 2015 5:06 pm
Forum: Personal Finance (Not Investing)
Topic: how to sell half value of my house to fiance or spouse
Replies: 31
Views: 4353

Re: how to sell half value of my house to fiance or spouse

I was with you until the last line. She'd only have to file a gift return unless the gift exceeded her life time limit, right? If you give your spouse a gift, no gift tax return is required. If you give anyone else gifts in excess of $14,000 you (the giver) must report the gift on a gift tax return...
by SouthernCPA
Tue Sep 29, 2015 4:50 pm
Forum: Personal Finance (Not Investing)
Topic: how to sell half value of my house to fiance or spouse
Replies: 31
Views: 4353

Re: how to sell half value of my house to fiance or spouse

Couldn't you just wait until after you are married and add your spouses name to the deed and have your spouse gift you the cash that you agree on as a fair price? Technically it's two separate transactions, adding spouse to the deed and then gifting of cash to you - neither of which would be subject...
by SouthernCPA
Tue Sep 29, 2015 11:32 am
Forum: Personal Finance (Not Investing)
Topic: What could I write off if I start an Outdoor Adventure Tour Comapny
Replies: 11
Views: 1094

Re: What could I write off if I start an Outdoor Adventure Tour Comapny

Excellent advice but do you really know of any CPA would do this for a few hundred dollars? I wouldn't think it would cost much more than that if OP uses a CPA who is familiar with small business taxes depending on the scope of service. There shouldn't be much research out of a run of the mill tax ...
by SouthernCPA
Tue Sep 29, 2015 10:36 am
Forum: Personal Finance (Not Investing)
Topic: What could I write off if I start an Outdoor Adventure Tour Comapny
Replies: 11
Views: 1094

Re: What could I write off if I start an Outdoor Adventure Tour Comapny

If you're serious about starting the company to turn a profit and it's not just a hobby that you are trying to get tax benefits from (see Hobby Loss rules), I would suggest spending the money to talk with an accountant and to get everything setup correctly on the front end. It will be worth the inve...
by SouthernCPA
Tue Sep 29, 2015 9:06 am
Forum: Personal Finance (Not Investing)
Topic: How Do You Track Capital Improvements on Your House?
Replies: 25
Views: 3517

Re: How Do You Track Capital Improvements on Your House?

I just throw the invoices and receipts for repairs/improvements made to my primary residence into a manila folder. I don't need a real time basis number unless I'm looking at selling. In my current home there is no way I'm going to bump up against the $500k Section 121 exclusion so I'm only going to...
by SouthernCPA
Mon Sep 28, 2015 10:53 am
Forum: Personal Finance (Not Investing)
Topic: Got Married. Selling Both homes to start fresh. Claim Cap. Gains exemption on both?
Replies: 9
Views: 3378

Re: Got Married. Selling Both homes to start fresh. Claim Cap. Gains exemption on both?

I haven't looked into it in depth, but I believe in this instance you would be allowed to take $250k exclusion for you and $250k exclusion for your wife if you sold both houses in the same tax year since you both independently qualified for the primary residence exclusion prior to the marriage. Howe...
by SouthernCPA
Mon Sep 28, 2015 9:53 am
Forum: Personal Finance (Not Investing)
Topic: Is private high school "worth it"?
Replies: 130
Views: 11726

Re: Is private high school "worth it"?

I went to public schools (we have great public schools where we live) and my wife currently teaches at a public school so I can't really comment on the private school vs. public school discussion, but we do have local Catholic schools that tout great graduation rates, ACT scores, etc. From my wife's...
by SouthernCPA
Fri Sep 25, 2015 12:33 pm
Forum: Personal Finance (Not Investing)
Topic: Bankruptcy Impact
Replies: 15
Views: 2311

Re: Bankruptcy Impact

Chapter 7 would be the last option because you lose all control. It sounds like the two main issues are the $70k unsecured debt and the fear of not being able to pay off/refinance the balloon. I don't know the breakdown of CC/Medical bills in the $70k, but I would contact the hospital/offices that h...
by SouthernCPA
Fri Sep 25, 2015 11:40 am
Forum: Personal Finance (Not Investing)
Topic: I want to borrow against my house to buy land
Replies: 18
Views: 3855

Re: I want to borrow against my house to buy land

Look for a land/Agricultural lender in your area. They usually have better and longer terms for large land purchases than banks. Also, they are normally setup as a coop which means they are borrower owned and you own stock when you borrow and receive dividends to offset the interest expense. Seller ...
by SouthernCPA
Thu Sep 24, 2015 9:35 pm
Forum: Personal Finance (Not Investing)
Topic: RMDs
Replies: 41
Views: 3310

Re: RMDs

That hasn't been approved yet for this year. But if you're going to tithe or make other charitable contributions anyway your point of doing it out of the RMD is well taken. They always seem to do the extender quite late in the year, or even in the next. :annoyed One of our tax experts suggested hav...
by SouthernCPA
Thu Sep 24, 2015 7:50 pm
Forum: Personal Consumer Issues
Topic: Using debit card(s) in France
Replies: 16
Views: 2171

Re: Using debit card(s) in France

You'll have no trouble getting cash out with your Debit card. Just make sure the bank knows your travel plans. I used my debit card in London, Paris and Rome last year. Also, consider using a Credit card, as mentioned, for both security reasons and possibly to save on fees. My AMEX gold card, for ex...
by SouthernCPA
Thu Sep 24, 2015 7:23 pm
Forum: Personal Finance (Not Investing)
Topic: RMDs
Replies: 41
Views: 3310

Re: RMDs

One thing to consider regarding your RMDs that is kind of a "two birds with one stone" thing is if you tithe or do charitable donations you can call your IRA trustee and have them make the RMD directly to the church/charity. This will let you exclude up to $100k a year in income. If you were going t...
by SouthernCPA
Thu Sep 24, 2015 4:24 pm
Forum: Personal Finance (Not Investing)
Topic: Landlord Study - Crunching Numbers on a Two-Flat
Replies: 16
Views: 2491

Re: Landlord Study - Crunching Numbers on a Two-Flat

Didn't realize the home exclusion was prorated for multi-unit residential buildings (i.e. <4 units). Could you live in 1 unit for 2 years, move to another unit for 2 years, and sell within a 5 year period to gain the whole property as a home exclusion (assuming 2 units)? I've yet to run into that i...
by SouthernCPA
Thu Sep 24, 2015 3:51 pm
Forum: Personal Finance (Not Investing)
Topic: refinancing $120k student loan: cash out home equity?
Replies: 22
Views: 2777

Re: refinancing $120k student loan: cash out home equity?

Depending on your incomes and filing status, you may be able to take up to $2,500 in SL Interest deduction "above the line." Meaning you can take this deduction to arrive at AGI even if you do not itemize. If you are filing MFJ with income > $160k the deduction is fully phased out and may not be of ...
by SouthernCPA
Thu Sep 24, 2015 3:13 pm
Forum: Personal Finance (Not Investing)
Topic: Landlord Study - Crunching Numbers on a Two-Flat
Replies: 16
Views: 2491

Re: Landlord Study - Crunching Numbers on a Two-Flat

Just reading through this thread, a couple things to note that may be misstated or not mentioned: 1. If you live in one unit and rent the other, this will not alleviate all of the capital gain (if any) via the primary residence exclusion. You would have to prorate the capital gain between the primar...
by SouthernCPA
Wed Sep 23, 2015 1:51 pm
Forum: Personal Investments
Topic: New guy here
Replies: 2
Views: 457

New guy here

Greetings all, new guy here. 27 year old that is fairly new to investing. A little about me and my goals: Married last year to my high school sweetheart (she's a year and a half younger than me). She's a teacher in our local school district. I'm a CPA with a local firm and do mostly tax work but als...
by SouthernCPA
Wed Sep 23, 2015 1:10 pm
Forum: Personal Consumer Issues
Topic: Scoring a deal on a boat
Replies: 33
Views: 4436

Re: Scoring a deal on a boat

I've got a 2009 22 foot center console fishing boat (live on the Gulf of Mexico) and it has been one of my best purchases I've made. No, it's not an investment, I could no doubt save the money and park it somewhere else to earn a few % return, but then I wouldn't be making memories with my wife and ...