Search found 1775 matches

by Chip
Sun Dec 31, 2017 2:13 pm
Forum: Personal Finance (Not Investing)
Topic: Form 1116: Allocating State Taxes (TurboTax)
Replies: 27
Views: 1042

Re: Form 1116: Allocating State Taxes (TurboTax)

Sorry, but I don't see any lines 2b-e on Form 1116. So those are some lines on some separate TT-provided worksheet? Yes, they are on the TurboTax FTC Computation Worksheet. 2b-e are simply itemizations that feed back into Line 2 of F1116. But it's awkward the way they do it -- the code "U" I tagged...
by Chip
Sun Dec 31, 2017 1:00 pm
Forum: Personal Finance (Not Investing)
Topic: Form 1116: Allocating State Taxes (TurboTax)
Replies: 27
Views: 1042

Re: Form 1116: Allocating State Taxes (TurboTax)

So why don't charitable contributions from Schedule A get placed on Line 3b (Other dedns) ? Or do they and tax software doesn't do it? From TurboTax help: The Internal Revenue Service issued guidance allowing U.S. taxpayers to allocate and apportion all of their deductible charitable contributions ...
by Chip
Sun Dec 31, 2017 12:56 pm
Forum: Personal Finance (Not Investing)
Topic: Form 1116: Allocating State Taxes (TurboTax)
Replies: 27
Views: 1042

Re: Form 1116: Allocating State Taxes (TurboTax)

In the immortal words of Emily Litella, NEVER MIND. Here's a quote from the help screen for the TurboTax FTC Computation Worksheet: NOTE: There are special rules for state income taxes deducted as an itemized deduction and how they are to be allocated. These rules are based on how foreign income is ...
by Chip
Sun Dec 31, 2017 12:34 pm
Forum: Personal Finance (Not Investing)
Topic: Form 1116: Allocating State Taxes (TurboTax)
Replies: 27
Views: 1042

Re: Form 1116: Allocating State Taxes (TurboTax)

Chip, The form instructions say: You must reduce your foreign gross income on line 1a by entering on lines 2 through 5: Any of your deductions that definitely relate to that foreign income; and A ratable share of your other deductions that don't definitely relate to that foreign income, any other f...
by Chip
Sun Dec 31, 2017 12:22 pm
Forum: Investing - Help with Personal Investments
Topic: Preferred Company Stock - Special Tax Treatment
Replies: 3
Views: 256

Re: Preferred Company Stock - Special Tax Treatment

My questions are: Is this type of plan typical? Can someone help explain the special tax treatment in plain English? Does it basically mean that instead of being taxed say $25k (if stock doesn’t appreciate) at regular income rates, we would only be taxed at say $2k (trustees cost)? How can that be ...
by Chip
Sun Dec 31, 2017 11:53 am
Forum: Personal Finance (Not Investing)
Topic: Form 1116: Allocating State Taxes (TurboTax)
Replies: 27
Views: 1042

Re: Form 1116: Allocating State Taxes (TurboTax)

FWIW, HRBlock fills in the mini-worksheet with 100% of my real estate taxes and 100% of my General sales taxes and the sum of those two go into Line 3a. And this is exactly what the instructions for Form 1116 state. My state does not have state income taxes, so that is why I deduct General sales ta...
by Chip
Sun Dec 31, 2017 10:14 am
Forum: Personal Finance (Not Investing)
Topic: Form 1116: Allocating State Taxes (TurboTax)
Replies: 27
Views: 1042

Re: Form 1116: Allocating State Taxes (TurboTax)

livesoft wrote:
Sun Dec 31, 2017 9:55 am
My opinion is that since the state would tax all of one's income, that ALL the state tax is related to foreign source income.
:shock:

Would your opinion change if making that choice would substantially reduce the allowable FTC?

Which it does.....
by Chip
Sun Dec 31, 2017 9:23 am
Forum: Personal Finance (Not Investing)
Topic: Form 1116: Allocating State Taxes (TurboTax)
Replies: 27
Views: 1042

Re: Form 1116: Allocating State Taxes (TurboTax)

Thanks to everyone who responded. Do any of you have an opinion on the basic question: If I have allocated some state tax as "definitely related" to foreign source income is the remainder automatically related to US source income and therefore doesn't even belong on the form?
by Chip
Sun Dec 31, 2017 6:03 am
Forum: Personal Finance (Not Investing)
Topic: Form 1116: Allocating State Taxes (TurboTax)
Replies: 27
Views: 1042

Form 1116: Allocating State Taxes (TurboTax)

I'm looking for some clarification on the allocation of state income taxes on Form 1116, particularly in TurboTax. I have read many of the threads here on Form 1116 but haven't seen this question directly answered. The question is that once I have determined the amount of state taxes that is "defini...
by Chip
Sun Dec 31, 2017 3:41 am
Forum: Personal Consumer Issues
Topic: Appliance Install Issues
Replies: 40
Views: 2016

Re: Appliance Install Issues

Oh and yes my refrigerator is 20 year old and one of the old style big ones. It still works great. I could not find the power draw on the inside labels. So I have no idea if it will share power well with the new microwave. I don't know if this will help, but in the past I've used a Kill A Watt mete...
by Chip
Fri Dec 29, 2017 2:09 pm
Forum: Personal Finance (Not Investing)
Topic: How much to contribute to DAF this year: impact of future QCD
Replies: 14
Views: 785

Re: How much to contribute to DAF this year: impact of future QCD

I honestly think that trying to plan out past 8 years is pretty dicey. The new tax law will have sunset by then unless extended. And as you mention, you will be in sight of the QCD option. So I'd wait if it were my money. Personally I've funded the DAF to get us to RMDs/QCDs, but I'm closer to them ...
by Chip
Fri Dec 29, 2017 1:19 pm
Forum: Personal Finance (Not Investing)
Topic: Donating shares from Vanguard
Replies: 17
Views: 1043

Re: Donating shares from Vanguard

For 2017, there is only time to open the DAF at the same institution where the shares are held. There is not enough time to transfer shares. gasdoc, did you notice in some of the other threads that you can open a Fidelity DAF and fund it via a grant from your Vanguard DAF? This would have no effect...
by Chip
Fri Dec 29, 2017 9:57 am
Forum: Personal Finance (Not Investing)
Topic: New Tax Bill -- Should we open a Donor Advised Fund (DAF) before the end of the year?
Replies: 67
Views: 2758

Re: New Tax Bill -- Should we open a Donor Advised Fund (DAF) before the end of the year?

Yes, and it's not too late. The White Coat Investor and I debated the merits of a DAF the other day . I'm a big fan. Thanks for the link. Good elaboration on the issues. I'm also a big fan of DAFs. For me the ease of donation aspect is huge. I used to donate appreciated stock to multiple organizati...
by Chip
Fri Dec 29, 2017 9:29 am
Forum: Personal Finance (Not Investing)
Topic: CNBC quotes IRS on terms of deductibility of prepaid property taxes
Replies: 79
Views: 5545

Re: CNBC quotes IRS on terms of deductibility of prepaid property taxes

Personally I think there is a good chance that Congress with pass legislation that all property taxes paid in 2017 are deductible. If enough people get angry on an essentially non-partisan issue (prepaying property taxes, not the tax bill itself), Congress often tends takes action. A lot of people ...
by Chip
Fri Dec 29, 2017 9:12 am
Forum: Investing - Help with Personal Investments
Topic: Suddenly my mortgage doesn't seem that great
Replies: 66
Views: 10572

Re: Suddenly my mortgage doesn't seem that great

Mortgage interest is 27K and property taxes are 14K annually. We also donate 3-4K to charity and reflect on our returns. Am I correct that we can only deduct up to 10K in property taxes but can continue to deduct the full 27K in mortgage interest and the 3-4K donated to charity? Married, filing joi...
by Chip
Thu Dec 28, 2017 2:10 pm
Forum: Personal Finance (Not Investing)
Topic: Confusion about prepaying property taxes
Replies: 124
Views: 12075

Re: Confusion about prepaying property taxes

Thanks...it looks like it's only relevant to 2018 property taxes...I prepaid my 2017 property taxes which is not assessed till March of 2018. It looks like prepaying 2017 property taxes prior to assessement is fine. I disagree. What's relevant is the date of the assessment. If you prepaid 2017 taxe...
by Chip
Thu Dec 28, 2017 9:37 am
Forum: Personal Consumer Issues
Topic: What computer should I get?
Replies: 36
Views: 3242

Re: What computer should I get?

Just a thought, you could go to a dual boot system on both the desktop and laptop. Install the primary op system for your main usage and the 32 bit version for MYM specialized use. I do/did this for specialized commercial radio programming, that also uses a DOS program, and it works great. It's fai...
by Chip
Thu Dec 28, 2017 9:26 am
Forum: Personal Finance (Not Investing)
Topic: CNBC quotes IRS on terms of deductibility of prepaid property taxes
Replies: 79
Views: 5545

Re: CNBC quotes IRS on terms of deductibility of prepaid property taxes

My county completed their assessment on 21 Dec 2017 (for 2017 taxes due, we pay one year in arrears). I have the online assessment but no bill yet. I will deduct the prepaid taxes and the online assessment will be my documentation. My situation is nearly identical. County completed assessment for 2...
by Chip
Thu Dec 28, 2017 8:52 am
Forum: Personal Finance (Not Investing)
Topic: CNBC quotes IRS on terms of deductibility of prepaid property taxes
Replies: 79
Views: 5545

Re: CNBC quotes IRS on terms of deductibility of prepaid property taxes

I'm in Mass and prepaid my property tax only to determine that I also am in AMT land so it was pointless. So, if I've paid them in 2017 but I don't deduct them in 2017, can I still deduct them in 2018 if it is useful? No. You're a cash basis taxpayer. You can only deduct taxes in the year you pay t...
by Chip
Thu Dec 28, 2017 4:38 am
Forum: Investing - Theory, News & General
Topic: This is Unbelievable - another Vanguard customer support odyssey
Replies: 40
Views: 6893

Re: This is Unbelievable - another Vanguard customer support odyssey

So yes, I'd gladly pay 10bps if I get excellent service, brick and mortar branches, a Christmas card and access to a support network that is second to none. That reminds me that I didn't get my usual Christmas card from Fidelity this year. I guess those lower expenses on their index funds are havin...
by Chip
Wed Dec 27, 2017 4:59 pm
Forum: Personal Finance (Not Investing)
Topic: TurboTax 2017 - Medical deduction floor still at 10%
Replies: 11
Views: 662

Re: TurboTax 2017 - Medical deduction floor still at 10%

The bill was signed Friday of a long holiday weekend. I am shocked that the tax software companies have not already incorporated the entire bill into their software by now! I would certainly not rely on anything for at least a month, as there are many moving parts that need to be integrated, which ...
by Chip
Wed Dec 27, 2017 2:55 pm
Forum: Personal Finance (Not Investing)
Topic: TurboTax 2017 - Medical deduction floor still at 10%
Replies: 11
Views: 662

TurboTax 2017 - Medical deduction floor still at 10%

PSA for those using 2017 Turbotax to figure last minute tax moves. The medical deduction "floor" for 2017 was changed from 10% to 7.5% in the new tax law. Turbotax does not yet reflect that change and therefore will not calculate your medical expense deduction correctly (unless it's zero under both ...
by Chip
Wed Dec 27, 2017 2:16 pm
Forum: Investing - Theory, News & General
Topic: TIPS Questions
Replies: 4
Views: 573

Re: TIPS Questions

Here's a great academic-level post (and resulting thread) by mindbogle from a few years ago about the effect of CPI seasonal adjustments on TIPS pricing. I think this may be what you're after.
by Chip
Wed Dec 27, 2017 8:37 am
Forum: Personal Finance (Not Investing)
Topic: Should I file taxes myself?
Replies: 24
Views: 1764

Re: Should I file taxes myself?

I would be interested in knowing how many paid preparers actually know about the 30% rate and can explain how it exists. If they get the answer to that one I'll ask them how it is that I can be either in the 16.5% or 33% "bracket" for Roth conversions, with no steps in between those two rates. :twi...
by Chip
Wed Dec 27, 2017 7:30 am
Forum: Personal Consumer Issues
Topic: What computer should I get?
Replies: 36
Views: 3242

Re: What computer should I get?

Bruce, First, thanks for your many contributions here over the years. I am also an MYM-DOS v12 user. You should be aware that DOS programs like MYM will not run under 64 bit Windows without some significant work on your part. They will run under 32 bit Windows, which is what you're likely using. Bot...
by Chip
Wed Dec 27, 2017 6:52 am
Forum: Personal Finance (Not Investing)
Topic: Donor Advised Fund if your tax circumstances will change in the future
Replies: 75
Views: 4957

Re: Donor Advised Fund if your tax circumstances will change in the future

Must the DAF be set up in 2017, or can it be set up in 2018, and used in 2018 to pay charities for 2017? The main thing to remember is that the DAF is a charity. So if you want to deduct contributions to it in 2017 it has to be set up and funded in 2017. You can then make grant recommendations to y...
by Chip
Mon Dec 25, 2017 10:52 am
Forum: Personal Finance (Not Investing)
Topic: Will you donate less to Charity?
Replies: 107
Views: 6881

Re: Will you donate less to Charity?

I think I will be donating more. I'm sticking quite a bit into the DAF this year. There will be this big pot of money sitting there that's not mine anymore. I think it will be like what happens when you buy the 64 oz mega-size shampoo at Costco -- you end up using more each time you wash your hair. ...
by Chip
Mon Dec 25, 2017 6:52 am
Forum: Investing - Theory, News & General
Topic: Will you take this Fidelity bait ?
Replies: 126
Views: 13225

Re: Will you take this Fidelity bait ?

Wonder if Fidelity will pay the bonus only if you transfer the funds into the PAS unit? That would be an awful outcome. Last year I helped a friend with some planning and moving her investments from a high cost broker to Fidelity. There it was invested in an extremely low cost 3 fund portfolio. She...
by Chip
Sun Dec 24, 2017 2:38 pm
Forum: Personal Finance (Not Investing)
Topic: Cliff dwellers: Don't forget to increase taxable dividend income by foreign taxes paid
Replies: 22
Views: 2258

Re: Cliff dwellers: Don't forget to increase taxable dividend income by foreign taxes paid

To some extent, the more we donate to charity, the more Roth conversion we can do. Right. That's what I'm dealing with right now. But I had a horse race going so will need to do some recharacterizations regardless of the level of charitable giving. I'm thinking that doing them in 2018 will probably...
by Chip
Sun Dec 24, 2017 12:51 pm
Forum: Personal Finance (Not Investing)
Topic: Cliff dwellers: Don't forget to increase taxable dividend income by foreign taxes paid
Replies: 22
Views: 2258

Re: Cliff dwellers: Don't forget to increase taxable dividend income by foreign taxes paid

As in past years, the foreign taxes paid will be included in Box 1 of the 1099-DIV and my taxable income will increase by that amount. I don't think the foreign tax paid number is available for awhile in 2018 (or is it?). Thanks for the reminder. I've never seen any foreign tax information until 10...
by Chip
Sun Dec 24, 2017 12:18 pm
Forum: Investing - Help with Personal Investments
Topic: Looking for advice on retirement withdrawals
Replies: 5
Views: 616

Re: Looking for advice on retirement withdrawals

Yes, that seems reasonable. Have you looked ahead ahead to the taxes you will be facing once Social Security and the RMDs from the other IRA are in effect? If the likely tax rate there is higher than what you're planning for it's probably a good idea to do more Roth conversions than you have planned...
by Chip
Sun Dec 24, 2017 7:41 am
Forum: Investing - Help with Personal Investments
Topic: Intentionally realize gains to offset large loss carryforward?
Replies: 8
Views: 762

Re: Intentionally realize gains to offset large loss carryforward?

I don't think you're missing anything, but the CFP sure is.
by Chip
Sun Dec 24, 2017 7:24 am
Forum: Personal Finance (Not Investing)
Topic: Possible glitch in the prohibition of pre-paying 2018 income taxes
Replies: 14
Views: 1361

Re: Possible glitch in the prohibition of pre-paying 2018 income taxes

I've yet to see this addressed.... Our town runs on a fiscal year, July 1 to June 31. So I can pay not only the January quarter but the April quarter as I have the bill already. It comes with coupons to mail in with each quarter payment and in the past, I have brought payment to town hall in person...
by Chip
Sun Dec 24, 2017 7:20 am
Forum: Personal Finance (Not Investing)
Topic: Lions, tigers and bears? Net Investment Income Tax, Medicare Tax, & IRMAA
Replies: 6
Views: 655

Re: Lions, tigers and bears? Net Investment Income Tax, Medicare Tax, & IRMAA

As I said, for the individual tax return, cost for Medicare part B and D in 2018 will be increased if your income was over $133,500 in 2016. Medicare has already sent me the bill, showing an increase of about $100 per month. The $85K / $170K bracket is limited to taxpayers who file as MFJ You've sa...
by Chip
Sat Dec 23, 2017 3:21 pm
Forum: Personal Finance (Not Investing)
Topic: Possible glitch in the prohibition of pre-paying 2018 income taxes
Replies: 14
Views: 1361

Re: Possible glitch in the prohibition of pre-paying 2018 income taxes

I am less sanguine for the hopes of a technical correction. We are still waiting for a technical corrections to the ACA and the current political situation seems more analogous to that than to regular order. I expect the current language will be dragged through the courts for years, and it will com...
by Chip
Sat Dec 23, 2017 3:14 pm
Forum: Personal Finance (Not Investing)
Topic: Prepaying for multiple future years of property tax
Replies: 4
Views: 819

Re: Prepaying for multiple future years of property tax

Thank you for the thread link. The thread suggests that there is no certainty that this will be allowed by IRS. There are many reputed news publications that are recommending to prepay property tax. Here is the link from Washington Post. https://www.washingtonpost.com/news/wonk/wp/2017/12/22/5-thin...
by Chip
Sat Dec 23, 2017 12:51 pm
Forum: Personal Finance (Not Investing)
Topic: Possible glitch in the prohibition of pre-paying 2018 income taxes
Replies: 14
Views: 1361

Re: Possible glitch in the prohibition of pre-paying 2018 income taxes

As I said in the other thread, the intent of Congress is clear that the deduction would not be allowed. I firmly believe that any difficult with the precise wording will be fixed via a technical corrections bill, which I believe often happen with bills this complex.
by Chip
Sat Dec 23, 2017 11:19 am
Forum: Personal Finance (Not Investing)
Topic: Prepaying for multiple future years of property tax
Replies: 4
Views: 819

Re: Prepaying for multiple future years of property tax

It's been discussed many times recently. I suggest you look at this thread, and especially the Tax Court case referenced in it.
by Chip
Sat Dec 23, 2017 11:12 am
Forum: Personal Finance (Not Investing)
Topic: 7.5% medical deduction for 2017 on billed amount or payed amount?
Replies: 14
Views: 594

Re: 7.5% medical deduction for 2017 on billed amount or payed amount?

Did not realize that the tax bill had some retroactive components. Are there others? That's the main one I noticed, other than prohibiting 2018 estimated state income tax payments made in 2017 from being deducted in 2017. That's "sort of" a retroactive provision. And note that the medical deduction...
by Chip
Sat Dec 23, 2017 10:44 am
Forum: Personal Finance (Not Investing)
Topic: 7.5% medical deduction for 2017 on billed amount or payed amount?
Replies: 14
Views: 594

Re: 7.5% medical deduction for 2017 on billed amount or payed amount?

Carl53 wrote:
Sat Dec 23, 2017 10:43 am
Medical expenses need to exceed 10% of AGI in 2017.
This isn't correct. The new tax bill reduced the floor to 7.5% for 2017 and 2018.
by Chip
Sat Dec 23, 2017 8:58 am
Forum: Personal Finance (Not Investing)
Topic: The 7-Year Tax Plan
Replies: 9
Views: 1201

Re: The 7-Year Tax Plan

I have a lot of numbers to run re future Roth conversions. The lower brackets, near elimination of deduction bunching (for me, anyway) and the higher standard deduction have changed the foundation of most of my tax planning. Along with the new compressed IRMAA "brackets". I would note that one thing...
by Chip
Fri Dec 22, 2017 4:06 pm
Forum: Investing - Help with Personal Investments
Topic: International question...Why FTIPX over FSIVX (Fidelity)
Replies: 6
Views: 557

Re: International question...Why FTIPX over FSIVX (Fidelity)

FTIPX is more of a total market fund than FSIVX. It includes emerging markets and small caps.
by Chip
Fri Dec 22, 2017 3:32 pm
Forum: Personal Finance (Not Investing)
Topic: Roth conversion strategies for 2018 and beyond?
Replies: 13
Views: 1475

Re: Roth conversion strategies for 2018 and beyond?

Starting in January 2018, is there any reason not so simply convert into an existing Roth and be done with it? There may be a slight benefit to segregating any tIRA funds that came from ERISA plan rollovers (versus annual contributions) into a separate Roth, but I can't think of any other reasons n...
by Chip
Fri Dec 22, 2017 1:01 pm
Forum: Personal Consumer Issues
Topic: Income tax software, "Tax Slayer".
Replies: 16
Views: 1453

Re: Income tax software, "Tax Slayer".

More than half of the volunteers at my site quit after the tax season and Tax Slayer was the leading cause of such mass quitting. That's sad. We lost quite a few as well, including someone who was essentially our state expert on the ACA. I haven't seen the numbers personally, but I've heard the num...
by Chip
Fri Dec 22, 2017 12:57 pm
Forum: Personal Finance (Not Investing)
Topic: Roth Recharacterizations in 2018 for 2017 Tax Year?
Replies: 12
Views: 873

Re: Roth Recharacterizations in 2018 for 2017 Tax Year?

Since the language in the TCJA is ambiguous, it may be a good idea to be conservative and do the re-characterization by 12/31/2017. The IRS will come up with the rules in due time. I'm guessing there's a 90%+ chance that 2017 recharacterizations will be allowed into 2018, but I'll still be doing mo...
by Chip
Fri Dec 22, 2017 10:24 am
Forum: Personal Finance (Not Investing)
Topic: Roth Recharacterizations in 2018 for 2017 Tax Year?
Replies: 12
Views: 873

Re: Roth Recharacterizations in 2018 for 2017 Tax Year?

The site owners have made an exception to their rules by allowing the main thread to exist. I appreciate what they did and intend to abide by their wishes. I hope everyone here will do the same.
by Chip
Fri Dec 22, 2017 10:18 am
Forum: Investing - Theory, News & General
Topic: What's in a name? "Long Island Iced Tea Corp." changes name to "Long Blockchain Corp.", stock price jumps 500%
Replies: 24
Views: 3479

Re: What's in a name? "Long Island Iced Tea Corp." changes name to "Long Blockchain Corp.", stock price jumps 500%

The pets.com reference is apt. Plus I recall several companies adding ".com" to their name during the mania in 99-00. There's even an Atlantic article about it. In 2001, when people were still sorting through the pixelated debris of the dotcom bust, three finance professors from Purdue University pu...
by Chip
Fri Dec 22, 2017 10:07 am
Forum: Personal Finance (Not Investing)
Topic: Please Post Tax Bill Questions Here [was Tax Bill Omnibus Thread]
Replies: 878
Views: 48592

Re: Please Post Tax Bill Questions Here [was Tax Bill Omnibus Thread]

To SuzBanyan, two posts above: Ok, that's very clear. Nevertheless, can anyone here think of any downside, other than the use of the money and perhaps loss of puny interest, to prepaying 2018 state income tax in 2017? The same harm I mentioned in this reply to you in another thread. IMO prepaying 2...
by Chip
Fri Dec 22, 2017 9:57 am
Forum: Investing - Help with Personal Investments
Topic: Interesting ride so far - Crypto-curriencies
Replies: 112
Views: 8469

Re: Interesting ride so far - Crypto-curriencies

queso wrote:
Fri Dec 22, 2017 9:11 am
Calling cryptocurrencies a genuine alternative to stocks and bonds is like calling Russian roulette a genuine alternative to target shooting.
Thanks. I spit coffee all over my keyboard after reading that! :beer
by Chip
Fri Dec 22, 2017 9:13 am
Forum: Investing - Theory, News & General
Topic: Comparing Schwab Mutual Funds & ETFs
Replies: 12
Views: 1388

Re: Comparing Schwab Mutual Funds & ETFs

For SCHF, foreign tax paid as a percentage of gross dividends in 2016 was 8.87%, or $.063239/share. Gross dividends per share last year were $.776339. I am assuming that dividends/share will grow 2% this year and so will the associated foreign taxes. But that's a WAG, I have no real basis for that ...