Search found 2013 matches

by CAsage
Tue May 04, 2021 12:24 pm
Forum: Personal Finance (Not Investing)
Topic: Naive IRS Question
Replies: 8
Views: 745

Re: Naive IRS Question

The taxed dividends are added to your cost basis, so you subtract all of them plus your initial purchase cost when you sell. Most brokerage houses will track that for you as "unrealized cost basis". Otherwise.... keep statements.
by CAsage
Mon May 03, 2021 1:05 pm
Forum: Personal Finance (Not Investing)
Topic: Filing state taxes by mail
Replies: 32
Views: 1728

Re: Filing state taxes by mail

I use Taxcut to do my taxes, and dither over the extra $19.95 they charge to e-file California returns (or any state). I have never had any issue with security as I trust the USPS and FTB. However, I have all my credit frozen and monitor my financial accounts like a hawk! It annoys me that FTB seems...
by CAsage
Sat May 01, 2021 3:49 pm
Forum: Personal Investments
Topic: I have Over-saved in tIRAs and need drawdown advice
Replies: 3
Views: 762

Re: I have Over-saved in tIRAs and need drawdown advice

1) Do a "Roth Conversion" to directly move those $$ from your over-funded IRA to a Roth. 2) Separately withdraw any funds you want to live on. You can pay taxes from either IRA withholding or from aftertax funds. I don't think it matters too much as you have to take it all out eventually, ...
by CAsage
Fri Apr 30, 2021 12:22 pm
Forum: Personal Investments
Topic: 401k-Beneficiary IRA proper process.
Replies: 4
Views: 340

Re: 401k-Beneficiary IRA proper process.

Hello, my mother passed away and left me a 401(k). I was told to transfer to an Inherited IRA/Beneficiary IRA to a brokerage of my choice. ...And how do I know what type of Beneficiary IRA to open. Is there only one type? I read about a beneficiary roth, beneficiary traditional etc. Does that even ...
by CAsage
Fri Apr 30, 2021 12:00 pm
Forum: Personal Investments
Topic: Community Prop. State-specific Restrictions on Creating a CPWROS Brokerage Account?
Replies: 2
Views: 185

Re: Community Prop. State-specific Restrictions on Creating a CPWROS Brokerage Account?

Isn't there another way for a couple in a community property state to sign a document (possibly notarize, or include in their estate documents) that simply states that all their Joint property is intended to be treated and held as community property, thereby granting them the capital gains reset at ...
by CAsage
Wed Apr 28, 2021 8:37 pm
Forum: Personal Finance (Not Investing)
Topic: Funeral expenses-10K fair?
Replies: 25
Views: 2951

Re: Funeral expenses-10K fair?

Personally, I paid about $800 for a direct cremation for my Mother in 2016. We then spent the rest on a trip to Hawaii for her ashes... Everyone has their priorities. I have advised my children to invite friends for a wake.
by CAsage
Wed Apr 28, 2021 6:06 pm
Forum: Personal Consumer Issues
Topic: Polywood Patio Furniture
Replies: 13
Views: 1746

Re: Polywood Patio Furniture

I have two Adirondack sets in my back yard - loveseat and chair by "built to last", and a second pair of LLBean chairs which I believe is the same construction/material as you are looking at. Couple years old, sit out 365 days a year, coastal temperate climate, steel hardware. I bought whi...
by CAsage
Tue Apr 27, 2021 6:53 pm
Forum: Personal Investments
Topic: Investment strategy for my 88 year old mom
Replies: 18
Views: 1658

Re: Investment strategy for my 88 year old mom

My mother is not financially savvy so I am helping her with her investments. The advisors were both recommended by different people, and they both charge about the same fee: 1%. So that's $8,000 each and every year down the drain, and does NOT include the expenses of whatever assets they choose. A ...
by CAsage
Tue Apr 27, 2021 5:05 pm
Forum: Personal Investments
Topic: Investment strategy for my 88 year old mom
Replies: 18
Views: 1658

Re: Investment startegy for my 88 year old mom

Another thought. Did your Mom already take into account any taxes owed this year? Might need estimated tax payments. Otherwise, it all depends on what her other investments are in. For sure, stick to simple things like stocks or bonds, held in either Mutual Funds or ETF. Avoid any alternative invest...
by CAsage
Tue Apr 27, 2021 1:12 pm
Forum: Personal Finance (Not Investing)
Topic: Saving for a house by buying a smaller house?
Replies: 4
Views: 525

Re: Saving for a house by buying a smaller house?

What are you living in now? It does make sense to buy a smaller home to live in, and then trade up when your income grows, because (hopefully) the starter house will appreciate and help you leverage that into a down on the bigger house. At least in SoCal, it has not been possible to "save"...
by CAsage
Tue Apr 27, 2021 11:30 am
Forum: Personal Consumer Issues
Topic: duct cleaning and other cleaning
Replies: 9
Views: 636

Re: duct cleaning and other cleaning

A German company called Gezundheit Duck Cleaning did an extensive job on the entire system as well as the HVAC systems. It was well worth it as we have 3 seperate HVAC systems one on each floor. Does Gezundheit clean chickens too? :D I think they specialize in Turducken - look for a coupon! Now, wi...
by CAsage
Mon Apr 26, 2021 6:41 pm
Forum: Non-US Investing
Topic: Does time of day matter when buying to hold?
Replies: 11
Views: 1636

Re: Does time of day matter when buying to hold?

I have found that it's better for me to sell/buy mutual funds close to the end of market day, as I have been burned with sudden jumps in the last hour or minutes.... So after the March 2020 rollercoaster, I dumped most of my mutual funds and now only buy/sell ETF. Yes, I do what you suggested, put i...
by CAsage
Mon Apr 26, 2021 2:16 pm
Forum: Personal Consumer Issues
Topic: Getting rid of old furniture
Replies: 21
Views: 1398

Re: Getting rid of old furniture

Facebook or craigslist, cheap or free. People might actually want the shelves to repurpose -lumber is super pricey right now and everyone needs either shelves for accent walls or more garage storage. Don't tell my husband, he'll drive miles for free stuff....
by CAsage
Sun Apr 25, 2021 7:10 pm
Forum: Personal Investments
Topic: ROTH monies in international stocks?
Replies: 3
Views: 684

Re: ROTH monies in international stocks?

Roth is the creator's name; it's not an acronym. I keep my Roth IRA 100% invested in stock across both U.S. and International, and don't make short term bets either way. Long term, just park it.
by CAsage
Sun Apr 25, 2021 6:59 pm
Forum: Personal Investments
Topic: Roth-IRA conversion for 83 year old widow?
Replies: 66
Views: 4415

Re: Roth-IRA conversion for 83 year old widow?

IMO, one can ignore the compounding inside vs outside a tax-protected account, as (roughly) the taxes have to be paid proportionally either now or later. The simple guide that I am personally following is to look at the tax bracket of the heirs, and the tax bracket of the owner (83 YO) over time. Ye...
by CAsage
Sun Apr 25, 2021 1:54 pm
Forum: Personal Investments
Topic: Help with 3-fund checkup and tax questions
Replies: 3
Views: 457

Re: Help with 3-fund checkup and tax questions

Initial orthogonal questions. Can you roll your IRA into your 401k? That would eliminate the backdoor Roth problem. Also, you should look into efficient asset allocation - mostly consider making your Roth all-stock due to presumed higher long term growth, and keep all your bonds in 401k/IRA since th...
by CAsage
Fri Apr 23, 2021 5:29 pm
Forum: Personal Finance (Not Investing)
Topic: Taxes for kid with Etsy Shop
Replies: 12
Views: 1211

Re: Taxes for kid with Etsy Shop

This is a fascinating question. It's clearly best for your child to report this on her own tax return as self-employment income, even if she ends up having to pay the SE taxes. Her standard deduction is earnings+350, and you avoid the dreaded kiddie tax at your income bracket. And with earned income...
by CAsage
Fri Apr 23, 2021 3:29 pm
Forum: Personal Investments
Topic: Legacy Strategy: Reducing One's Estate
Replies: 36
Views: 3654

Re: Legacy Strategy: Reducing One's Estate

You don't specify what your net assets are invested in. A brief breakdown of the assets in Roth vs IRA vs brokerage would allow for good input... I would second Celia's suggestion to look into maximizing that Roth account by converting anyway, pay the taxes and gift your children out of the taxable ...
by CAsage
Fri Apr 16, 2021 3:45 pm
Forum: Personal Finance (Not Investing)
Topic: Kiddie Tax Misc 2021
Replies: 10
Views: 763

Re: Kiddie Tax Misc 2021

I am trying to say, if a parent wants to fund a child's UTMA account with the parent's appreciated long-term stocks, then the gift tax limitations would also apply to the UTMA if they go above the gift tax limits -- $150k for 2 parents, is this correct? Does a child tax return need to be filed (sin...
by CAsage
Wed Apr 14, 2021 1:11 pm
Forum: Personal Finance (Not Investing)
Topic: Tax implications
Replies: 8
Views: 636

Re: Tax implications

Are you sure the reverse mortgage was actually paid off? Are you planning on selling soon (i.e. Dad doesn't live there anymore). It looks like he "sold" you the house for the amount of the debt, but you don't have any paperwork documenting that amount. Dad would be potentially liable for a...
by CAsage
Mon Apr 12, 2021 5:50 pm
Forum: Personal Finance (Not Investing)
Topic: Roth IRA Distributions - are they income tax-free if ... ?
Replies: 7
Views: 872

Re: Roth IRA Distributions - are they income tax-free if ... ?

Your aunt is fine, it's all hers. The rule requires the Roth to be open at least 5 years and for the owner to be over 59.5. There is nothing relevant in whether she did/didn't contribute..... Look under Roth Qualified Withdrawal rules in IRS Pub 590-B. https://www.investopedia.com/roth-ira-withdrawa...
by CAsage
Sun Apr 11, 2021 5:56 pm
Forum: Personal Investments
Topic: Trying to use TurboTax to amend 2019 return due to excess Roth contribution. Ugh.
Replies: 5
Views: 463

Re: Trying to use TurboTax to amend 2019 return due to excess Roth contribution. Ugh.

Perhaps amending the return is the wrong solution, because the Roth contribution would not actually change your taxes. Try form 5329 instead. And claim the earnings in the year it was received (not an expert). https://www.taxact.com/support/1280/2020/ira-or-roth-ira-excess-contributions https://www....
by CAsage
Sun Apr 11, 2021 4:38 pm
Forum: Personal Investments
Topic: Trying to use TurboTax to amend 2019 return due to excess Roth contribution. Ugh.
Replies: 5
Views: 463

Re: Trying to use TurboTax to amend 2019 return due to excess Roth contribution. Ugh.

The trick to an amended return is to create the "fixed" return as though you were filling it out correctly, and the 1040-X simply shows the difference. So you should not be showing that $7K in income (plus possibly annoying increase...) which would be for a different year anyway. Perhaps (...
by CAsage
Sun Apr 11, 2021 1:22 pm
Forum: Personal Consumer Issues
Topic: Would (did) you preemptively replace your Roof Shingles
Replies: 51
Views: 3570

Re: Would you preemptively replace your Roof

Another option to consider is how many times you are really gonna need to do this. If you expect to stay in the house forever, is that realistically longer than the warranty on a new roof? If you are gonna sell, a decent roof is mandatory, though it will add zip to your sale price. So, if the roof i...
by CAsage
Wed Apr 07, 2021 4:34 pm
Forum: Personal Finance (Not Investing)
Topic: how to avoid probate
Replies: 9
Views: 993

Re: how to avoid probate

Probate for a simple estate is 100% avoidable. My Parent died 2016, left a Vanguard brokerage account POD to me and a sibling. Trivial transfer - we sent in the death cert, they split the funds. Small BigBank checking account, left POD to me. I transferred that cash into my personal account, to pay ...
by CAsage
Tue Apr 06, 2021 10:55 am
Forum: Personal Finance (Not Investing)
Topic: College Student Tax Status
Replies: 8
Views: 618

Re: College Student Tax Status

With $500 earned income, they are absolutely your dependent, so likely no stimulus. Maybe the AOTC refundable part since they have no tax liability. And then you would lose the $500 credit for other dependents, so at most $500 back to your daughter. Could be worth it. https://www.irs.gov/pub/irs-pd...
by CAsage
Mon Apr 05, 2021 6:01 pm
Forum: Personal Finance (Not Investing)
Topic: College Student Tax Status
Replies: 8
Views: 618

Re: College Student Tax Status

With $500 earned income, they are absolutely your dependent, so likely no stimulus. Maybe the AOTC refundable part since they have no tax liability. And then you would lose the $500 credit for other dependents, so at most $500 back to your daughter. Could be worth it. https://www.irs.gov/pub/irs-pdf...
by CAsage
Fri Apr 02, 2021 12:30 pm
Forum: Personal Consumer Issues
Topic: Question - Raised Garden Bed next to the house
Replies: 7
Views: 647

Re: Question - Raised Garden Bed next to the house

How is the boundary between the two houses marked? While in a 3.5' space you can fit a 2' wide bed... that presumes you will be walking over your neighbor's property every time you access the 8' sides of the planter. What direction does that wall face, and how close is the next structure or wall? Ve...
by CAsage
Wed Mar 31, 2021 1:51 pm
Forum: Personal Investments
Topic: Optimizing inherited IRA withdrawls
Replies: 11
Views: 1056

Re: Optimizing inherited IRA withdrawls

Personally, I would draw it down faster at the lower tax brackets, and then invest it in a nice low-turnover, tax efficient stock index fund forever. You can open a separate account to mentally thank the giver, and it's still there when you need it. I now regret having maxed out my 401k for so many ...
by CAsage
Tue Mar 30, 2021 4:23 pm
Forum: Personal Finance (Not Investing)
Topic: AOTC question
Replies: 11
Views: 882

Re: AOTC question

What I meant is I could choose to not claim him as a dependent. https://hawkinsashcpas.com/why-you-might-want-to-not-claim-your-child-as-a-dependent/ So this is clearly some guy fishing to get business; it's not a solid recommendation. If your child earned $7K, you can certainly claim him as a depe...
by CAsage
Mon Mar 29, 2021 5:55 pm
Forum: Personal Finance (Not Investing)
Topic: AOTC question
Replies: 11
Views: 882

Re: AOTC question

Your son is a dependent according to the IRS unless he provides more than 1/2 his support, generally by earning it, for the whole year. If he started as a freshman in 2020, does that mean he lived at home (possibly as a High School student and over the summer) on your nickel? Who paid for college? R...
by CAsage
Mon Mar 29, 2021 4:54 pm
Forum: Personal Investments
Topic: Helping out Mom
Replies: 10
Views: 1047

Re: Helping out Mom

Moving to a lower expense ratio provider is a good thing in general, but one cannot assess the "tax hit" without knowing the current "Cost Basis" is. Get online and find out! Are all those funds in after tax (i.e. non-IRA) accounts? Once you find out the cost basis, you can deter...
by CAsage
Fri Mar 26, 2021 5:01 pm
Forum: Personal Investments
Topic: Any reasons to not convert tIRA to Roth?
Replies: 40
Views: 2647

Re: Any reasons to not convert tIRA to Roth?

Each year, if your income appears to be under the top of the 24% bracket, convert that amount. The goal overall is to minimize taxes over your lifetime, so you "level" the income by filling up the lower tax brackets. Note the 401k will result in taxable income when withdrawn, as well. I pe...
by CAsage
Sun Mar 21, 2021 6:05 pm
Forum: Personal Finance (Not Investing)
Topic: Is this the correct way to determine my quarterly taxes?
Replies: 9
Views: 1462

Re: Is this the correct way to determine my quarterly taxes?

But if you do it through estimated taxes, the estimated payments should be distributed evenly through the year. You cannot just wait until the 4th quarter to do all the estimated payments for the whole year, and expect to avoid the penalty. Good to know! I had seen another post somewhere saying tha...
by CAsage
Thu Mar 18, 2021 7:05 pm
Forum: Personal Finance (Not Investing)
Topic: H&R Block - software issue
Replies: 10
Views: 545

Re: H&R Block - software issue

Just another random thought - in HRB Taxcut, sometimes you can click on a cell and find "related to" or "comes from" info. I hate those secret hidden worksheets .... Delighted you found it!
by CAsage
Thu Mar 18, 2021 4:58 pm
Forum: Personal Finance (Not Investing)
Topic: H&R Block - software issue
Replies: 10
Views: 545

Re: H&R Block - software issue

Have you tried deleting the form 1099 completely? Or changing the numbers in it to a wild value, then save and correct? I swear sometimes software just gets stuck.... Or if the return is simple, start over with a fresh file. I'm just guessing.
by CAsage
Thu Mar 18, 2021 4:13 pm
Forum: Personal Finance (Not Investing)
Topic: Estimated "quarterly" tax payments deduction
Replies: 14
Views: 1217

Re: Estimated "quarterly" tax payments deduction

Federal tax payments are not deductible anywhere (federal or state return), but you should enter (apply) them on each tax return for the year you designated when you made the payment. State taxes are deductible on your federal return in the year you parted with the cash - if you itemize, and with th...
by CAsage
Wed Mar 17, 2021 12:13 pm
Forum: Personal Finance (Not Investing)
Topic: Do I need to pay estimated tax (1040-ES)?
Replies: 16
Views: 1242

Re: Do I need to pay estimated tax (1040-ES)?

1) If I realize in June, December etc, that I need to make estimated tax payments, or increase my tax withholding on my W-4, would this trigger a late payment penalty for not paying sooner in Q1, Q2,...? 2) How are capital gains treated from stock sells late in the year? Does the IRS hit you with a...
by CAsage
Tue Mar 16, 2021 7:00 pm
Forum: Personal Finance (Not Investing)
Topic: Do I need to pay estimated tax (1040-ES)?
Replies: 16
Views: 1242

Re: Do I need to pay estimated tax (1040-ES)?

What is my tax liability for 2020? Is it the $4k I owe for my 2020 tax return? Or is it the total tax paid in 2020 (eg, through pay check withholdings) + what I pay in my 2020 tax return? I'm guessing the former, since the estimated tax payments for 2021 from TurboTax add up to $7656. I can pay the...
by CAsage
Tue Mar 16, 2021 5:43 pm
Forum: Personal Finance (Not Investing)
Topic: Do I need to pay estimated tax (1040-ES)?
Replies: 16
Views: 1242

Re: Do I need to pay estimated tax (1040-ES)?

Research "safe harbor rules". The IRS wants you to pay as you earn, so I would carefully calculate your 2021 taxes and adjust your W-4 withholding to try and break even for the year. You are safe if : If you expect to owe less than $1,000 after subtracting your withholding, you’re safe. If...
by CAsage
Wed Mar 10, 2021 4:19 pm
Forum: Personal Finance (Not Investing)
Topic: when do I need to taxes for child's income?
Replies: 17
Views: 987

Re: when do I need to taxes for child's income?

So, if my college student's stipend had been below $2200, the Fed tax would have been 10% but because unearned was more than $2200, it was taxed at my rate? (I feel that I have barely mastered my specific tax situation, but just want to know in case I face this in the future.) I think (as in, my in...
by CAsage
Wed Mar 10, 2021 2:41 pm
Forum: Personal Finance (Not Investing)
Topic: when do I need to taxes for child's income?
Replies: 17
Views: 987

Re: when do I need to taxes for child's income?

(CAsage wrote: 3) Yup, the unearned income below $1100 is tax free for the child. Oh Happy Day! Re: #3 above-- I am mixing different types of children's unearned income, but while recently working on my college student's taxes for his unearned stipend/fellowship, I have found a different explanatio...
by CAsage
Wed Mar 10, 2021 2:14 pm
Forum: Personal Finance (Not Investing)
Topic: PSA: Free tax preparation (VITA) available entire remotely at GetYourRefund.org hub.
Replies: 13
Views: 943

Re: PSA: Free tax preparation (VITA) available entire remotely at GetYourRefund.org hub.

I'm curious if the VITA program is less important now with TurboTax and the virtual interview system. Filing personal income taxes is way easier today than it was when one had to fill out all of the forms by hand. Nope. Lots of people are still tech challenged, lack computers, and there's a surpris...
by CAsage
Wed Mar 10, 2021 1:48 pm
Forum: Personal Finance (Not Investing)
Topic: when do I need to taxes for child's income?
Replies: 17
Views: 987

Re: when do I need to taxes for child's income?

Thoughts on several issues raised above, based on actual filing of my child's 2020 IRS & CA FTB returns: 1) You don't need to buy separate tax software for an additional return; most allow up to 5 free federal returns. 2) Yes, you can file a return for your child even though they are a dependent...
by CAsage
Fri Mar 05, 2021 10:34 am
Forum: Personal Finance (Not Investing)
Topic: Advice regarding Promissory Notes
Replies: 2
Views: 191

Re: Advice regarding Promissory Notes

What kind of documentation and what are the terms of the Note?
by CAsage
Sun Feb 28, 2021 6:57 pm
Forum: Personal Finance (Not Investing)
Topic: When Credit Card Fraud Happens Stay on Top of It!
Replies: 52
Views: 5029

Re: When Credit Card Fraud Happens Stay on Top of It!

Following avidly. I think I'm in about to be hit with fraud on our Costco Citi card - got a text that my purchase of Costco Gas in Northern Ca (not us!) was declined, and I have the strangest $10 charge and credit from a FedEx store in some other city I've never been to.... The Costco Gas purchase w...
by CAsage
Thu Feb 25, 2021 5:54 pm
Forum: Personal Investments
Topic: Roth IRA for kids.
Replies: 6
Views: 698

Re: Roth IRA for kids.

Generally, you have to work to have earned income, which is required to fund a Roth. A formal W-2 job is not required. The other alternative is to have someone die and leave your their 401k, which you could pay taxes on and convert to a Roth. Lots of posts on this site about Roth for kids.
by CAsage
Wed Feb 24, 2021 4:19 pm
Forum: Personal Consumer Issues
Topic: Contractor Issues with Remodel
Replies: 64
Views: 3822

Re: Contractor Issues with Remodel

Also check the list of owner vs contactor supplied parts. I would expect "can lights" to include the number (2 vs 12?) and possibly a description, like type and air tightness. There are also various types of can inserts (the part you see, with the actual light) that can vary quite a bit in...
by CAsage
Wed Feb 24, 2021 1:10 pm
Forum: Personal Finance (Not Investing)
Topic: What IRA distributions to report on Form 1040 line 4a
Replies: 3
Views: 304

Re: What IRA distributions to report on Form 1040 line 4a

Never mind.... I just let the software figure it out.
by CAsage
Tue Feb 23, 2021 4:36 pm
Forum: Personal Finance (Not Investing)
Topic: When to payoff mortgage (before or at house sale)
Replies: 9
Views: 683

Re: When to payoff mortgage (before or at house sale)

Looking at (old, dusty, 1998) actual closing escrow paperwork from the house I sold.. I think it would save you a few bucks, maybe $100 (inflation from 1998). There were escrow charges to request the payoff amount and then forward the balance. I will note that the escrow company charged for both the...