Search found 936 matches

by damjam
Thu Mar 08, 2012 11:53 am
Forum: Personal Finance (Not Investing)
Topic: Turbo Tax Woes: Other Income vs Independent Contractor
Replies: 13
Views: 6102

Re: Turbo Tax Woes: Other Income vs Independent Contractor

jared
Thank you for you thorough response.
This is part of the reason I really appreciate this forum.
damjam
by damjam
Thu Mar 08, 2012 11:46 am
Forum: Personal Finance (Not Investing)
Topic: Owner's Title Insurance
Replies: 3
Views: 510

Re: Owner's Title Insurance

I would hold on to any policy paperwork for as long as I held the property it covers.
I can't think of any reason to keep it past disposal of the property.
Perhaps others can give a reason to keep the paperwork longer.
by damjam
Thu Mar 08, 2012 11:32 am
Forum: Personal Finance (Not Investing)
Topic: Turbo Tax Woes: Other Income vs Independent Contractor
Replies: 13
Views: 6102

Re: Turbo Tax Woes: Other Income vs Independent Contractor

Whether the actual case cited is binding, or displayed on a Russian website, shouldn't matter at this point, if it helps us to figure out what "self-employment" means. I've seen many citations for this case on the web, including on a Russian website. However it is oddly missing on the United States...
by damjam
Thu Mar 08, 2012 10:27 am
Forum: Personal Finance (Not Investing)
Topic: Turbo Tax Woes: Other Income vs Independent Contractor
Replies: 13
Views: 6102

Re: Turbo Tax Woes: Other Income vs Independent Contractor

If you're looking for some authority, see the following US Tax Court case: Batok v. Commissioner, TC Memo. 1992-727 AFAIK, this is a memorandum opinion and as such can not be sited as a legal precedent. I would be very wary if your going to use this avenue. As far as Turbo Tax is concerned, I share...
by damjam
Wed Mar 07, 2012 6:22 pm
Forum: Personal Finance (Not Investing)
Topic: Dating and Personal Finances... How important to you?
Replies: 57
Views: 4729

Re: Dating and Personal Finances... How important to you?

MortgageOnBlack wrote:Not to come off shrewd, but from my experience it seems like the more attractive the female the worse her financial situation is. Wonder if they all anticipate a responsible, stable man whisking them away...
That's a horrible stereotype.
by damjam
Wed Mar 07, 2012 6:12 pm
Forum: Investing - Help with Personal Investments
Topic: Advice - asset consol/planning
Replies: 4
Views: 318

Re: Advice - asset consol/planning

morningsun wrote: 60%+ is in Wells Fargo stock or stock options.
Do you mean that you have 60% of your money tied up in one company? Or are you saying you have an account at Wells Fargo that holds various stocks?
If 60% of your money is in one stock that is very undiversified, and you would want to change that.
by damjam
Wed Mar 07, 2012 5:47 pm
Forum: Personal Finance (Not Investing)
Topic: Six-Year Old Medical Bill
Replies: 10
Views: 1253

Re: Six-Year Old Medical Bill

Making any kind of payment on the bill will reset the statue of limitations clock. So if any payment is made he needs to make sure the final amount is settled on and in writing. This is exactly what will trigger a 1099-C, if the creditor is paying attention. So my question is: if the debtor never p...
by damjam
Wed Mar 07, 2012 4:47 pm
Forum: Personal Finance (Not Investing)
Topic: Six-Year Old Medical Bill
Replies: 10
Views: 1253

Re: Six-Year Old Medical Bill

Making any kind of payment on the bill will reset the statue of limitations clock. So if any payment is made he needs to make sure the final amount is settled on and in writing.
by damjam
Tue Mar 06, 2012 5:30 pm
Forum: Personal Consumer Issues
Topic: Turbo Tax vs.CPA
Replies: 33
Views: 4257

Re: Turbo Tax vs.CPA

I'm a little disappointed with Turbo Tax. I used it for the first time this year for 2011 taxes and I found 2 bugs. One was minor, a rounding error. The second was major, the program computes that my state income tax refund is fully taxable when it is in fact not taxable at all. I only stumbled upon...
by damjam
Tue Mar 06, 2012 12:02 pm
Forum: Personal Finance (Not Investing)
Topic: Rental Property Depreciation Recapture
Replies: 6
Views: 2024

Re: Rental Property Depreciation Recapture

When I did my taxes for 2011 (myself using turbotax), I assigned the building value of $70K because I took the purchase price of $345K and deducted the $277K in land value. This is perhaps artificially low, but I'm thinking may have ended up being a good thing to keep my depcreciation lower? The IR...
by damjam
Mon Mar 05, 2012 6:02 pm
Forum: Personal Finance (Not Investing)
Topic: Rental expenses not deductible until rented?
Replies: 31
Views: 16684

Re: Rental expenses not deductible until rented?

This is my parents house, and eventually I will inherit, so I need the stepped-up basis. Don't want to do anything to screw that up. Its worth 10-20 times their purchase price in the '60s. The basis in a property you inherit from a decedent is generally one of the following: The FMV of the property...
by damjam
Mon Mar 05, 2012 4:51 pm
Forum: Personal Finance (Not Investing)
Topic: Rental expenses not deductible until rented?
Replies: 31
Views: 16684

Re: Rental expenses not deductible until rented?

>Second question: If your unit has a sign in the window "Opening, June 2014," does that qualify as "available"? Hint: think about it. Dunno. They could sign a contract, but my accountant seems to be saying that isn't sufficient since it has never been rented before. Maybe I have to collect some ren...
by damjam
Sun Mar 04, 2012 12:57 pm
Forum: Personal Consumer Issues
Topic: Countertops - value and durability
Replies: 45
Views: 7357

Re: Countertops - value and durability

Thank you for your input. What you wrote jives with what I've read elsewhere, so that is good. Would you put them in again? Would you recommend them to a busy family with two little kids? Just curious, how old is your house, or what style is your kitchen? What color (paint, stain) are your cabinets...
by damjam
Sun Mar 04, 2012 12:32 pm
Forum: Personal Consumer Issues
Topic: Countertops - value and durability
Replies: 45
Views: 7357

Re: Countertops - value and durability

I have soapstone countertops. We put them in with a kitchen remodel 3+ years ago. I do not baby them in any way. They look great, are period appropriate for my house and are easy to maintain. They don't stain. The disadvantages are: 1. They do scratch, although you can sand any scratches out. I've h...
by damjam
Sun Mar 04, 2012 11:01 am
Forum: Personal Finance (Not Investing)
Topic: Rental House Question
Replies: 9
Views: 1934

Re: Rental House Question

golfpro65 wrote:... our rental house, which has been more of a burden than an investment property.
That's your answer right there.
If it's a burden I would sell it, especially since it's a losing proposition when maintenance and other expenses are factored in.
by damjam
Sun Mar 04, 2012 8:07 am
Forum: Personal Finance (Not Investing)
Topic: Is anyone not depending on social security when they retire?
Replies: 93
Views: 6488

Re: Is anyone not depending on social security when they ret

When I do projections of retirement income I assume 75% of current benefits will be available. At least that's what I've read will be available when the "trust fund" runs out. If SS were completely eliminated I would have to rethink my plans. I would have the option to move to a lower cost region, s...
by damjam
Sat Mar 03, 2012 11:43 pm
Forum: Investing - Help with Personal Investments
Topic: Retroactively reduce MAGI to get under roth income limit?
Replies: 2
Views: 374

Re: Retroactively reduce MAGI to get under roth income limit

Will partially recharacterizing get you under the limit?
by damjam
Sat Mar 03, 2012 9:57 pm
Forum: Investing - Help with Personal Investments
Topic: i - Bond Purchase Limits for 2012?? - I am confused??
Replies: 9
Views: 963

Re: i - Bond Purchase Limits for 2012?? - I am confused??

And can you specify in your return to have the $5000 refund automatically go into I-bonds? Or do you buy them with your refund check?
You fill out form 8888 with your return.
by damjam
Sat Mar 03, 2012 9:55 pm
Forum: Personal Finance (Not Investing)
Topic: Exchanging within a SEP account
Replies: 1
Views: 209

Re: Exchanging within a SEP account

If a person has American Funds mutual funds in a SEP IRA and wants to exchange from equity to fixed inome mutual funds, still with American Funds, would this be a taxable event that would trigger a penalty? Also, would you have to pay a load for an exchange? It would not be a taxable event as long ...
by damjam
Sat Mar 03, 2012 8:17 pm
Forum: Personal Finance (Not Investing)
Topic: condo gone underwater
Replies: 17
Views: 3273

Re: condo gone under

I own a second home condo that is underwater. Can I forclose or shortsale if I financed it with a mortgage on my primary home. I only hold the one mortgage. If I forclosed on the condo would they attach my primary home. The payments are to high in our retirement. I've already refinanced at a rate o...
by damjam
Sat Mar 03, 2012 5:28 pm
Forum: Personal Finance (Not Investing)
Topic: Tax reporting 1099 duplicate but from different entities
Replies: 12
Views: 781

Re: Tax reporting 1099 duplicate but from different entitie

If by the "wrong hands" you mean anyone not familiar with the relevant portions of the tax code, I think 90 percent of users of tax software are the "wrong hands." You don't have to be familiar with tax code, you just have to be willing to read. Do you think 90% of the users of tax software can't r...
by damjam
Sat Mar 03, 2012 5:12 pm
Forum: Personal Finance (Not Investing)
Topic: Tax reporting 1099 duplicate but from different entities
Replies: 12
Views: 781

Re: Tax reporting 1099 duplicate but from different entitie

jebmke wrote:Tax software is dangerous in the wrong hands.
If by the "wrong hands" you mean anyone not familiar with the relevant portions of the tax code, I think 90 percent of users of tax software are the "wrong hands."
by damjam
Fri Mar 02, 2012 9:57 am
Forum: Investing - Help with Personal Investments
Topic: Roth contribution after filing taxes
Replies: 7
Views: 754

Re: Roth contribution after filing taxes

Last year I was in your situation. I went into Turbo Tax (TT) and did an amended return so that TT would carry over all of the correct information to the next year. I then only sent in the Form 8606. I did not send an amended return to the IRS. I don't remember why I thought this was appropriate, b...
by damjam
Thu Mar 01, 2012 10:06 pm
Forum: Personal Finance (Not Investing)
Topic: Refinancing our home, please help
Replies: 6
Views: 756

Re: Refinancing our home, please help

Is everything dependent on what the house appraises for once we start the refi process? Yes. Would it be worthwhile to look into refinancing to something shorter than a 30-year loan? Sure. Should we start off by calling Bank of America to see about our ability to refinance through them? Or should w...
by damjam
Thu Mar 01, 2012 9:43 pm
Forum: Personal Finance (Not Investing)
Topic: Pricing real estate
Replies: 15
Views: 1825

Re: Pricing real estate

I would get at least three real estate firms to price the property. Unless the property is in such a small town that there aren't that many firms. When I priced my house a few years ago one agent priced the house much lower than the other two I contacted. I can imagine that an agent might overprice ...
by damjam
Thu Mar 01, 2012 1:34 pm
Forum: Personal Finance (Not Investing)
Topic: Got a letter from the IRS...
Replies: 20
Views: 2819

Re: Got a letter from the IRS...

[quot="c.Alvine"]Go to the http://WWW.IRS.GOV website and search for "backup withholding" and read carefully. Better yet, call the IRS. It is their job to answer your questions. Telephone Assistance for Individuals: Toll-Free, 1-800-829-1040 Hours of Operation: Monday – Friday, 7:00 a.m. – 7:00 p.m....
by damjam
Wed Feb 29, 2012 3:35 pm
Forum: Personal Finance (Not Investing)
Topic: Deducting state tax on federal return
Replies: 24
Views: 3549

Re: Deducting state tax on federal return

Also Turbo Tax, it seems, has calculated this incorrectly. I may have screwed it up somehow when I entered the data, but if I'm interpreting your example correctly I shouldn't include my 2010 state refund in my income for 2011. This leaves me feeling very uneasy, computer programs being infallible ...
by damjam
Wed Feb 29, 2012 10:19 am
Forum: Personal Finance (Not Investing)
Topic: Deducting state tax on federal return
Replies: 24
Views: 3549

Re: Deducting state tax on federal return

Something else to keep in mind is that not all of what is stated on a 1099-G is necessarily taxable, it's only taxable to the extent that your excess contributions over the previous year affected your taxes. If you were in AMT territory the previous year and still would have been if your Schedule A...
by damjam
Wed Feb 29, 2012 9:37 am
Forum: Personal Finance (Not Investing)
Topic: Deducting state tax on federal return
Replies: 24
Views: 3549

Re: Deducting state tax on federal return

Something else to keep in mind is that not all of what is stated on a 1099-G is necessarily taxable, it's only taxable to the extent that your excess contributions over the previous year affected your taxes. If you were in AMT territory the previous year and still would have been if your Schedule A...
by damjam
Tue Feb 28, 2012 3:32 pm
Forum: Investing - Help with Personal Investments
Topic: IRA Questions
Replies: 4
Views: 375

Re: IRA Questions

Have you considered a solo 401k?
Vanguard has a tool that helps you choose the appropriate plan.
Vanguard also has a page to compare plans.
by damjam
Mon Feb 27, 2012 4:29 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor + Front Door roth
Replies: 14
Views: 1414

Re: Backdoor + Front Door roth

I have no other IRA balance, so it would my first time doing this. I like the doing fully from the backdoor idea, but just curious if there is any long-term tax consequences. When you convert you will have to pay tax on any of the earnings. One consequence of doing it as one transaction, ie: one la...
by damjam
Mon Feb 27, 2012 4:21 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor + Front Door roth
Replies: 14
Views: 1414

Re: Backdoor + Front Door roth

I think the contribution total for an ira per individual under 50 is 5k/year. So you can't do both a front and backdoor roth. I believe the OP is saying that they can make a partial Roth contribution, some amount less than 5K. It seems the OP's income is in the phase out range for eligibility for R...
by damjam
Mon Feb 27, 2012 12:20 am
Forum: Investing - Help with Personal Investments
Topic: Non-deductible traditional IRA
Replies: 6
Views: 706

Re: Non-deductible traditional IRA

If you don't have any other IRAs you could convert your nondeductible IRA to a ROTH IRA.
See the Backdoor ROTH page in the WIKI.
by damjam
Sun Feb 26, 2012 11:26 pm
Forum: Investing - Help with Personal Investments
Topic: Renting my current home
Replies: 31
Views: 2534

Re: Renting my current home

I don't think your crazy. I think your in a difficult situation. I'm not clear, are you unable to make the mortgage payments, or are you just trying to downsize? Depending on where the property is located you may be looking at a very long term commitment if your waiting for the price to recover. Bei...
by damjam
Sun Feb 26, 2012 11:12 pm
Forum: Personal Finance (Not Investing)
Topic: Are we thinking clearly about refinancing??
Replies: 12
Views: 1133

Re: Are we thinking clearly about refinancing??

The fixed rate mortgage is a much better deal if interest rates rise in the future and you reach maximum rate adjustments with the ARM. I would consider going for the 30 year fixed rate mortgage. Then I would use the $700 monthly savings to rebuild a 6 month emergency fund. Once an e-fund is built u...
by damjam
Sat Feb 25, 2012 10:40 pm
Forum: Personal Finance (Not Investing)
Topic: credit rating issue and idea to minimize downgradeing
Replies: 10
Views: 1019

Re: credit rating issue and idea to minimize downgradeing

I'm not an attorney, but to me you sound like a candidate for bankruptcy. I would consult with a bankruptcy attorney that will be familiar with the laws in your state. I would also look for a forum that discusses credit repair and bankruptcy issues for more information. BTW, I believe transferring o...
by damjam
Sat Feb 25, 2012 10:06 pm
Forum: Investing - Help with Personal Investments
Topic: simple place for $1mm long term
Replies: 2
Views: 509

Re: simple place for $1mm long term

Post your situation according to this thread: Asking Portfolio Questions.
You'll get the most informed answers that way.
by damjam
Thu Feb 23, 2012 8:07 pm
Forum: Investing - Help with Personal Investments
Topic: Investing Inheritance
Replies: 34
Views: 3736

Re: Investing Inheritance

If you are not subject to AMT, the effective rate of your first mortgage is: 3.125(1-(.25+.0955))=2.045 The effective rate of your second mortgage is: 6.5(1-(.25+.0955))=4.25 If you are subject of AMT your effective rates will be higher. Why? The lowest AMT bracket is 26%, so the first mortgage wil...
by damjam
Thu Feb 23, 2012 8:03 pm
Forum: Investing - Help with Personal Investments
Topic: Investing Inheritance
Replies: 34
Views: 3736

Re: Investing Inheritance

Without knowing your full situation, I will say this: If you can find a risk-free investment that will return better than 4.25% guaranteed then invest in it. Otherwise pay off the second mortgage. But I don't know your full situation, for instance is your 6 to 9 month emergency fund sufficient? Do y...
by damjam
Thu Feb 23, 2012 7:28 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement plan for a contractor
Replies: 8
Views: 688

Re: Retirement plan for a contractor

You mentioned high annual maintenance fees. From what I can tell, I wouldn't need to file anything until the individual 401k exceeds $250K. Vanguard also looks like it only charges $20/year at most for administering the individual 401k. I would check with an accountant. I believe you need to regist...
by damjam
Thu Feb 23, 2012 5:52 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement plan for a contractor
Replies: 8
Views: 688

Re: Retirement plan for a contractor

I should add that IIRC I chose not to use a solo 401k because there are annual maintenance fees, To the tune of a few thousand dollars. Partly because the reporting is more involved and costing more $$. I don't know much about SIMPLE IRAs, except IIRC there are minimum contribution requirements that...
by damjam
Thu Feb 23, 2012 5:36 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement plan for a contractor
Replies: 8
Views: 688

Re: Retirement plan for a contractor

I've used a SEP IRA in the past. Very simple, and you can contribute one year, and not the next, if you want/need.

Retirement Plan FAQs IRS
by damjam
Thu Feb 23, 2012 5:16 pm
Forum: Investing - Help with Personal Investments
Topic: Investing Inheritance
Replies: 34
Views: 3736

Re: Investing Inheritance

maverick1099 wrote: how do I calculate the effective rate?
If you are not subject to AMT, the effective rate of your first mortgage is:
3.125(1-(.25+.0955))=2.045

The effective rate of your second mortgage is:
6.5(1-(.25+.0955))=4.25

If you are subject of AMT your effective rates will be higher.
by damjam
Mon Feb 20, 2012 5:06 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage Default Experiences
Replies: 18
Views: 1831

Re: Mortgage Default Experiences

It all depends an whether you are in a recourse state or non-recourse state. Speak to an attorney. Also look into a Deed in Lieu of Foreclosure. What is a Deed in Lieu of Foreclosure With a DIL of foreclosure, you give your home to the lender (the “deed”) in exchange for the lender canceling the loa...
by damjam
Fri Feb 17, 2012 1:07 pm
Forum: Investing - Help with Personal Investments
Topic: How can I know whether an inherited IRA has basis or not?
Replies: 9
Views: 8859

Re: How can I know whether an inherited IRA has basis or not

Basis with regard to IRAs has to do with whether there were ever non-deductible contributions. From the IRS : You will have a cost basis in your traditional IRA if you made any nondeductible contributions. Your cost basis is the sum of the nondeductible contributions... If you made nondeductible con...
by damjam
Fri Feb 17, 2012 12:37 pm
Forum: Investing - Theory, News & General
Topic: Conspiracy of the Rich, How much should I be worried?
Replies: 34
Views: 3947

Re: Conspiracy of the Rich, How much should I be worried?

Historical data indicate a strong relationship between the age distribution of the U.S. population and stock market performance. A key demographic trend is the aging of the baby boom generation. As they reach retirement age, they are likely to shift from buying stocks to selling their equity holdin...
by damjam
Thu Feb 16, 2012 4:55 pm
Forum: Investing - Help with Personal Investments
Topic: I want to use Specific id - But....
Replies: 31
Views: 3504

Re: I want to use Specific id - But....

Example 2. (i) Taxpayer D enters into an agreement with W Custodian establishing an account for the periodic acquisition of shares of L Company, a regulated investment company. W acquires for D’s account shares of L Company stock on the following dates and amounts: Date ................ Shares .......
by damjam
Wed Feb 15, 2012 5:22 pm
Forum: Investing - Help with Personal Investments
Topic: I want to use Specific id - But....
Replies: 31
Views: 3504

Re: I want to use Specific id - But....

Keep It Simple wrote: I'm concerned this will be a tremendous hassle to now go back and track all lots purchased prior to 1/1/2012(reinvested dividends etc.).
.



Edit: I'm too confused myself to comment
by damjam
Wed Feb 15, 2012 5:15 pm
Forum: Investing - Help with Personal Investments
Topic: Difference between R/O and traditional IRA
Replies: 10
Views: 2340

Re: Difference between R/O and traditional IRA

You might want to rollover pre-tax IRA money to a 401k so you can do a Backdoor ROTH.