Search found 1424 matches

by earlyout
Fri Apr 11, 2008 3:04 pm
Forum: Personal Investments
Topic: Taxes and telecommuting
Replies: 13
Views: 3355

Resident?

Are you a resident of State A or State B? Unless you can itemize and document all of the sales tax you have paid, your sales tax deduction is calculated based on the state/county/city where you are a legal resident. If you file your federal taxes as a legal resident of State B, your sales tax deduct...
by earlyout
Mon Apr 07, 2008 8:13 am
Forum: Personal Investments
Topic: Tax Question: re. cashless for cash gain on exercised NQSO
Replies: 23
Views: 5056

April 15

Freeman,

It is very easy to file for a 6 month extension. I mention this in case you do not get your corrected W-2 before the 15th. It sounds like you know what your total tax for 2007 will be so include any amount you owe when you file for an extension.

EO
by earlyout
Thu Apr 03, 2008 8:46 pm
Forum: Personal Finance (Not Investing)
Topic: Panama City Condo Purchase
Replies: 4
Views: 1823

Check your insurance costs

Remember to get a firm estimate on HO's insurance before you sign a contract. Homeowner's insurance on the coast can be VERY high and very difficult to obtain. Hurricanes do happen.

EO
by earlyout
Tue Apr 01, 2008 4:47 pm
Forum: Personal Investments
Topic: Muni's and Social Security
Replies: 7
Views: 2268

Taxable SS Calculations

Because the taxes on SS benefits are difficult to estimate, I developed this Excel spreadsheet to help me with my own retirement. The spreadsheet uses macros so you may have to grant permission for the macros to run in your system.

Please let me know if there are questions.

EO
by earlyout
Tue Apr 01, 2008 4:11 pm
Forum: Investing - Theory, News & General
Topic: Roth IRA contribution rules
Replies: 3
Views: 1303

IRS Publication 17, Pg 116

The quoted material is from the section on IRA contributions: "If you are self-employed (a sole proprietor or a partner), compensation is the net earnings from your trade or business (provided your personal services are a material income-producing factor) reduced by the total of: -The deduction...
by earlyout
Sat Mar 22, 2008 4:47 pm
Forum: Personal Investments
Topic: Tax Rebate and Roth IRA questions
Replies: 13
Views: 3203

Another correction

Her AGI is not the determining factor for the rebate. As long as her net earned income is at least $3000 she should get a $300 rebate. She may have other adjustments to income that lower here AGI below $3000. (I tried this on the calculator and she still gets the rebate.)

eo
by earlyout
Sat Mar 22, 2008 3:22 pm
Forum: Personal Investments
Topic: Tax Rebate and Roth IRA questions
Replies: 13
Views: 3203

Huey, Thanks. I stand corrected. We learn a lot from each other. On page 116 of IRS Publication 17, net earnings from self-employment is defined as you said -- "...the net earnings from your trade or business reduced by the deduction allowed for one-half of your self-employment taxes." So ...
by earlyout
Sat Mar 22, 2008 2:37 pm
Forum: Personal Investments
Topic: Tax Rebate and Roth IRA questions
Replies: 13
Views: 3203

Thanks for finding the calculator. The results are interesting but I wonder if the calculator may not be correct since it does not ask about self-employment income. The following is from the FAQ available on the results page (emphasis added): Q. I want to estimate my payment. Please explain how it i...
by earlyout
Sat Mar 22, 2008 11:47 am
Forum: Personal Investments
Topic: Help with MLP and taxes
Replies: 19
Views: 10051

What date did you sell the LP? Did you get a K-1 for part of the year prior to sale? Carried over passive loss will offset passive gain. If there was no passive gain, the carryover may not be recognized.
by earlyout
Sat Mar 22, 2008 9:23 am
Forum: Personal Investments
Topic: Tax Rebate and Roth IRA questions
Replies: 13
Views: 3203

Line 12

kayman Based on the information published by the IRS, if line 12 of her 1040 is $3040, and this is her only income, your girlfriend qualifies for a $300 economic stimulus payment. Her AGI on line 37 is not important and will be less than line 12. She will have tax due equal to the self-employment ta...
by earlyout
Thu Mar 20, 2008 2:26 pm
Forum: Personal Investments
Topic: Social Security
Replies: 3
Views: 1659

Your Dad's SS benefits will not be taxed until the total of 1/2 of his benefit plus their other income is over $32000. At that point 50% of that total that is over $32000 is included in taxable income. If the total is over $44000, then 85% of his SS is taxable income. The amount of tax is determined...
by earlyout
Mon Mar 17, 2008 6:47 pm
Forum: Investing - Theory, News & General
Topic: When will you receive your Special Tax Rebate?
Replies: 14
Views: 2935

Method of payment

The method used for the stimulus payment will be the same as for your tax refund -- direct deposit to the same account or mailed to the address on your tax return. If you do not have a tax refund the stimulus payment will be mailed to you.

EO
by earlyout
Sun Mar 16, 2008 8:25 pm
Forum: Personal Investments
Topic: Property Tax Question
Replies: 9
Views: 2745

Closing statement

I think you probably know the right answer. The seller paid the taxes at closing for the first half of the year and will deduct them on his income taxes. You paid the property taxes for the second half of the year and should reduce the total amount by the adjustmejnt.

EO
by earlyout
Fri Mar 14, 2008 11:59 am
Forum: Personal Investments
Topic: Retirement Tax Planning
Replies: 6
Views: 1586

Fortune Telling

I don't think it possible to make accurate predictions about taxes and many people think it is a complete waste of time. Maybe one can make reasonable guesses about taxes for 3-4 years in the future but beyond that it is speculation. For retirement projections, I assume: 1. US income tax will keep a...
by earlyout
Fri Mar 14, 2008 11:36 am
Forum: Personal Investments
Topic: Question about contribution to a Roth IRA
Replies: 6
Views: 1931

No need for new Roth

Zoey,

You can use your husband's earned income from last year to contribute to your existing Roth IRA even if you had no earned income for 2007.

EO
by earlyout
Sun Mar 09, 2008 11:08 am
Forum: Personal Investments
Topic: Unemployment benefits considered AGI to fund ROTH?
Replies: 6
Views: 1850

Unemployment compensation is included in your AGI but IRA contributions (Roth or traditional) require earned income. Earned income is usually wages reported on a W-2, net income from self employment, or alimony received. As far as I know, unemployment compensation is not considered earned income. EO
by earlyout
Sun Mar 09, 2008 8:24 am
Forum: Personal Investments
Topic: Can I contribute to a Roth IRA for 2007?
Replies: 3
Views: 1499

This quote from Kaye Thomas's Fairmark website regarding qualifying income for IRA contributions may help: Safe Harbor The IRS recognizes that it's unclear whether some items are "compensation income." To make things easy, the IRS says you can generally treat any item as compensation incom...
by earlyout
Sat Mar 08, 2008 9:55 pm
Forum: Personal Investments
Topic: Tax Rebate and Roth IRA questions
Replies: 13
Views: 3203

Self-employment

Oops! Self-employment income (1099-MISC) changes the picture significantly. A single person usually does not have to file a tax return for 2007 unless their gross income was over $8750. There are some exceptions however. One of these is if net income from self-employment is more than $400. Since you...
by earlyout
Wed Mar 05, 2008 7:51 pm
Forum: Investing - Theory, News & General
Topic: Real Estate Property Tax deduction
Replies: 6
Views: 2144

I don't see this as any different than paying your property taxes into an escrow account when you make your mortgage payments. The mortgage holder transfers the funds to the taxing body. The homeowner deducts the property taxes.

EO
by earlyout
Sun Mar 02, 2008 8:09 pm
Forum: Personal Investments
Topic: 1099-R question (different lines for different funds)
Replies: 7
Views: 3141

Vanguard is acting on your father's request to make a distribution from his IRA (which he then converted to a Roth). Vanguard issued a 1099R for this distribution. It makes no difference if he sold shares of 1 fund or 100 funds, the 1099R is for a single distribution from the IRA and should be repor...
by earlyout
Sat Mar 01, 2008 8:33 pm
Forum: Personal Finance (Not Investing)
Topic: asking IRS about unpaid taxes a red flag?
Replies: 14
Views: 3207

I don't know if the phone call would trigger an audit but a return that is filed more than a year late is probably looked over carefully, particularly if the return shows a refund due to the taxpayer. If the IRS has questions about a return the taxpayer will get a letter asking for more information ...
by earlyout
Thu Feb 21, 2008 4:24 pm
Forum: Personal Investments
Topic: Roth Recharacterisation question
Replies: 1
Views: 1128

Roth Recharacterization

I don't know that it is correct but I suspect it is. I do know that recharacterization is not as straightforward as just moving back the shares from your last year's conversion. You might want to look at http://fairmark.com/rothira/rctop.htm or IRS Publication 590 on IRAs for information on recharac...
by earlyout
Sat Feb 16, 2008 3:14 pm
Forum: Investing - Theory, News & General
Topic: Aum Fees Tax Deductable?
Replies: 7
Views: 2226

I do not know how Vanguard collects their fee.

EO
by earlyout
Sat Feb 16, 2008 10:10 am
Forum: Investing - Theory, News & General
Topic: Aum Fees Tax Deductable?
Replies: 7
Views: 2226

Investment expense

As far as I know, AUM fees on taxable accounts can be included as miscellaneous expense on Schedule A. Miscellaneous expenses greater than 2% of your AGI are deductible. AUM fees on IRAs cannot be included as miscellaneous expenses. You don't include interest and dividends from the IRA as income so ...
by earlyout
Thu Feb 14, 2008 4:27 pm
Forum: Forum Issues and Administration
Topic: Proposal: Indexed Financial Planning Service
Replies: 188
Views: 43999

Why waste $50?

Assuming that the person had found the advisory service from this board, why wouldn't they just post their question here? They would get the same answer, hear it from more than just one person and save $50.

EO
by earlyout
Thu Jan 31, 2008 12:23 pm
Forum: Investing - Theory, News & General
Topic: Article on when to take Social Security
Replies: 114
Views: 22587

Also, as far as I understand things, you don't get a tax deduction for the amount paid back, so if you paid any taxes on your SS income before withdrawing, that's gone too. You can get your taxes back if you withdraw your application and repay the SS benefits you have received. The taxes paid in pr...
by earlyout
Thu Jan 31, 2008 8:29 am
Forum: Personal Finance (Not Investing)
Topic: starting a Roth IRA before the 15th
Replies: 7
Views: 2349

Re: starting a Roth IRA before the 15th

i want to open a roth ira and make contributions for 2007. once i do that what papers do i request from vanguard so i can file with my w2 & other tax papers ? or do they give it automatically since its 07? and how long does it usually take? thanks~ Since Roth contributions are made with money t...
by earlyout
Mon Jan 28, 2008 5:17 pm
Forum: Forum Issues and Administration
Topic: Problem with forum - keep having to re-login
Replies: 25
Views: 7044

Losing record of opened conversations

Thanks. This explains something I wondered about for awile. Bell South DSL (now part of AT&T) gives the subscriber the option of using dynamic IP addressing. My understanding is this gives you a different IP address each time you connect. I use this option. I do not lose my login to diehards.org...
by earlyout
Mon Jan 28, 2008 11:55 am
Forum: Personal Investments
Topic: Do 401K contributions reduce AGI for Roth IRA contributions?
Replies: 3
Views: 1747

Contributions to a 401K are not included in the modified AGI used to determine how much you can contribute to a Roth IRA. See this Fairmark link: http://fairmark.com/rothira/modagi.htm

EO
by earlyout
Sat Jan 26, 2008 2:12 pm
Forum: Personal Investments
Topic: Write off home sale loss?
Replies: 9
Views: 2397

No realtor fees

From the IRS: "You cannot deduct a loss from the sale of your main home." Okay, I guess that settles part of the question. But what about realtor fees? Closing costs? What if I am asked to pay buyer closing costs? Can these not get included in tax writeoffs? kimchee Realtor fees are like ...
by earlyout
Sun Jan 20, 2008 12:54 pm
Forum: Personal Investments
Topic: IRA Conversion to Roth & Roth limits for 2010
Replies: 15
Views: 3252

Thank you for all of the helpful replies! I am learning so much from this forum. I certainly appreciate all of the great words of wisdom. I am not able to contribute to a Roth right now, but I will be able to in 2010, when they lift the income limits. Given that I will be over 50 (and given that I ...
by earlyout
Sun Jan 20, 2008 12:30 pm
Forum: Personal Investments
Topic: IRA Conversion to Roth & Roth limits for 2010
Replies: 15
Views: 3252

Re: IRA Conversion to Roth & Roth limits for 2010

Hello. I had not realized until I read a number of posts on this forum that the income limits for contributions to a Roth IRA will be lifted in 2010. Also, it appears that I will be able to convert my (very small) regular IRA to a Roth in 2010, and spread the tax over two years. Correct? I had inqu...
by earlyout
Thu Jan 10, 2008 7:30 am
Forum: Investing - Theory, News & General
Topic: Capital gains tax for 2008? way to increase cost basis?
Replies: 12
Views: 3467

Re: capital gains for08

Earlyout Are you talking about line 43 in regards to the $65100 max to get the 0 c/g. The div and c/g paid out usally isn't known until late Nov. People could be surprised as some where this year by some large payouts. Yes. The total taxable income on line 43 (Form 1040 for 2007, it may change for ...
by earlyout
Tue Jan 08, 2008 7:59 pm
Forum: Investing - Theory, News & General
Topic: Capital gains tax for 2008? way to increase cost basis?
Replies: 12
Views: 3467

Taxable Income

In the Cruz column referenced above by minesweep, Cruz points out that the top of the 15% tax bracket for married taxpayers filing a joint return for 2008 will probably be $65,100. Note that this is the maximum taxable income in the15% bracket. You should add the amount of your deductions and exempt...
by earlyout
Tue Jan 08, 2008 4:57 pm
Forum: Personal Investments
Topic: Should I (and can I) convert more TIRA to Roth for 2007?
Replies: 9
Views: 1852

Tax law is messy and overly complex but the ability to recharacterize in the following year is needed in case your taxable income turns out to be over the limit for Roth conversion. Any recharacterization or delayed IRA contribution is accounted for in your 2007 tax return (that's why it must be don...
by earlyout
Tue Jan 08, 2008 1:16 pm
Forum: Personal Investments
Topic: Should I (and can I) convert more TIRA to Roth for 2007?
Replies: 9
Views: 1852

Too Late

Ted, Your 2007 taxes are for what you do in 2007. I copied the paragraph below from the Fairmark site. Meeting the Deadline To meet the deadline for a conversion in the current year, you need to have the money or assets distributed from your traditional IRA by December 31. If you do that, you can co...
by earlyout
Mon Jan 07, 2008 4:08 pm
Forum: Personal Finance (Not Investing)
Topic: ISP, email and Vista??
Replies: 7
Views: 1899

Default

Paul,

I have no problems with Firefox as the default browser with Vista Home Premium.

I suppose you could run both Windows Mail and Outlook but Outlook provides a calendar function as well as a task list. Outlook is part of MS Office and Windows Mail is the replacement for Outlook Express.

EO
by earlyout
Mon Jan 07, 2008 2:09 pm
Forum: Personal Finance (Not Investing)
Topic: ISP, email and Vista??
Replies: 7
Views: 1899

No problems with yahoo mail, gmail, MS Outlook '07 or Firefox browser on Vista Home Premium since getting a new system last March. I also installed Mozilla Thunderbird email as a test and it worked fine but since I had MS Outlook I decided to stay with it instead. I am using a DSL connection and hav...
by earlyout
Fri Jan 04, 2008 1:39 pm
Forum: Investing - Theory, News & General
Topic: 2008 BOGLEHEAD CONTEST REGISTRATION
Replies: 317
Views: 80547

1425

a flat year -- 1425
by earlyout
Sun Dec 16, 2007 5:14 pm
Forum: Personal Finance (Not Investing)
Topic: Life Insurance & Travel/Accident Ins.
Replies: 5
Views: 1231

Drop it

I was faced with the same decision a few years ago when I retired. Insurance proceeds were no longer needed to replace salary and retirement funds will cover my wife's expenses should I die before she does. We dropped all of our life insurance at that time. The money we would have spent on premiums ...
by earlyout
Sat Dec 15, 2007 11:48 am
Forum: Personal Investments
Topic: Transfer Taxed Account into a ROTH ? ?
Replies: 7
Views: 1777

Go for it

Joe,

If your can stay in the 15% tax bracket, including your capital gains, there would be no tax on the capital gains in 2008-2010 (unless they change the law). This would make it very advantageous to convert $5000 per year of your taxable account into a Roth.

EO
by earlyout
Fri Dec 14, 2007 9:18 am
Forum: Personal Investments
Topic: Transfer Taxed Account into a ROTH ? ?
Replies: 7
Views: 1777

IRA Contributions

Are you contributing to a regular IRA? "Transfers" from the taxable account to a Roth IRA are IRA contributions and will decrease how much you can contribute to the traditional IRA. Starting in 2008 your total IRA contributions are limited to $5000 ($6000 if over age 49). IRA contributions...
by earlyout
Tue Dec 11, 2007 8:37 am
Forum: Personal Investments
Topic: Trad IRA to Roth Conversion Age Limit?
Replies: 5
Views: 1636

Web Sites

Zig,

I think the Fairmark site is the best but others sites with IRA information are:

RothIraAdvisor

RothIRAWebSite

Ed Slott's IRA forums at IRAHelp

The final arbiter of course is the IRS and you may want to study IRS publication 590.

Good luck.

EO
by earlyout
Mon Dec 10, 2007 12:18 pm
Forum: Personal Investments
Topic: Trad IRA to Roth Conversion Age Limit?
Replies: 5
Views: 1636

Zig,

My understanding is there is no age limit on converting your traditional IRA to Roth but any conversion would be in addition to your RMD. You would have income (and taxes) on your RMD and the amount of your conversion.

EO
by earlyout
Thu Dec 06, 2007 9:13 pm
Forum: Personal Investments
Topic: Calculating IRA Recharacterization Gain/Loss
Replies: 7
Views: 2486

Just a guess (without actually looking it up) but the recharacterization may have been a percentage of everything in you IRA. It may not be just the securities that were purchased with the $4000 contribution. The IRS probably considers everything to be mixed together. Do you have more than 1 traditi...
by earlyout
Thu Nov 29, 2007 4:36 pm
Forum: Investing - Theory, News & General
Topic: Filling 15% bracket with IRA withdrawals
Replies: 28
Views: 6852

Conversion not in AGI

Live Free and others, For conversion of tIRA to Roth , the requirement of AGI being <100k doesn't apply if you are 59 1/2 or older. Do you agree? hs I thilnk we all agree that the AGI limit doesn't change at 591/2. However, remember that the amount you want to convert to a Roth is not included in t...
by earlyout
Tue Nov 27, 2007 8:10 pm
Forum: Investing - Theory, News & General
Topic: TurboTax price vs time
Replies: 27
Views: 7076

Save $5.00

An interesting topic. I have always waited until February or March to buy TT thinking I could find a bargain. I was never able to find one and now I understand that they pretty well hold to the full retail price. Although it is not bundled with anything, Turbo Tax Deluxe 2007 is now $39.99 from Amaz...
by earlyout
Wed Nov 21, 2007 7:39 pm
Forum: Investing - Theory, News & General
Topic: Post date-of-death stock sales: long or short?
Replies: 4
Views: 1241

Long term gain

From IRS Publication 17 for2006, p98: "Inherited property. If you inherit investment property, your capital gain or loss on any later disposition of that property is treated as long-term capital gain or loss. This is true regardless of how long you actually held the property." I don't thin...
by earlyout
Mon Nov 19, 2007 3:55 pm
Forum: Investing - Theory, News & General
Topic: Another option on SS benefits
Replies: 6
Views: 2100

Another option on SS benefits

There is a new thread on the M* Investing During Retirement forum that may be of interest to anyone considering delaying SS until they reach age 70. Based on an article in the WSJ on Nov. 17, if your spouse is receiving SS retirement benefits based on their earnings history, you can claim just your ...
by earlyout
Mon Nov 19, 2007 12:20 pm
Forum: Personal Investments
Topic: basic tax question/roth conversion
Replies: 17
Views: 3261

Tax rates

Please correct me if I am wrong, but if I Roth converted $81,200 minus the $40,000 QDI/LTCG, or $41,200, then the QDI/LTCG will be taxed at 5% and the Roth conversion will be taxed at 15%. If I converted $81,200, then QDI/LTCG would be taxed at 15% and the Roth conversion would be taxed at 15%. Is ...