Search found 318 matches
- Sat Nov 04, 2023 2:18 pm
- Forum: Personal Finance (Not Investing)
- Topic: mortgage refi to lower principal?
- Replies: 3
- Views: 670
Re: mortgage refi to lower principal?
Here's some details on Denmark's process and the impact on homeowner behavior: https://www.nationalbanken.dk/media/mr3llntu/refinancing-behaviour-by-homeowners-in-denmark-when-mortgage-rates-rise.pdf The Danish mortgage framework resembles the US by having a large share of fixed-rate callable mortgages. However, fixed-rate mortgages in Denmark are also issued under the match-funding principle, implying that the market value of the individual loan is directly linked to the market value of the underlying fixed-rate mortgage bond. Consequently, net wealth of existing fixed-rate mortgage borrowers increases as mortgage rates rise. To realise this net wealth gain, fixed-rate mortgage borrowers can prepay their mortgage at market value at any poi...
- Wed Oct 11, 2023 8:37 am
- Forum: Personal Finance (Not Investing)
- Topic: CP2000 IRS notice uncovered RSU sale
- Replies: 19
- Views: 2587
Re: CP2000 IRS notice uncovered RSU sale
Some people at my employer have said they have been able to call the IRS and fix the problem by telling them the cost basis over the phone. You could try that first before amending. I'll give that a shot and report back! Thanks for the tip Wait until Wednesday to call. Monday (typically bad day to call) is a holiday. So Tuesday will be bad too because it’s the day after a Monday holiday. If the number of transactions are few (less than 10) you may have luck giving cost basis over the phone. Anything lengthy or complicated is better handled with a written response. Also, do NOT amend. In response to a CP2000 you provide the missing forms or schedules only. The IRS “amends” your return for you through the CP2000. Amending your state, if need...
- Mon Oct 09, 2023 10:29 am
- Forum: Personal Finance (Not Investing)
- Topic: CP2000 IRS notice uncovered RSU sale
- Replies: 19
- Views: 2587
Re: CP2000 IRS notice uncovered RSU sale
Fingers crossed, and thanks for validating I'm not unique in my RSU withholding experience! I'm going to give them a call first, before mailing things
- Mon Oct 09, 2023 10:20 am
- Forum: Personal Finance (Not Investing)
- Topic: CP2000 IRS notice uncovered RSU sale
- Replies: 19
- Views: 2587
Re: CP2000 IRS notice uncovered RSU sale
It sounds like your employer used the first method, converting the RSUs to shares in your name, then selling those shares to cover the tax withholding and therefore creating a sale that was reported on a 1099-B. Does the 1099-B say the shares are uncovered? I'd expect it to say covered but with a zero basis. It makes a difference on the 8949. If uncovered, you just show the actual basis. If covered, you show the zero basis shown on the 1099-B (which is correct for RSUs) and then show a basis adjustment for the amount included on your W-2. Exactly right, the 1099 shows the shares are noncovered. Regarding reporting of noncovered shares, careful reading of form 8949 instructions says to enter the basis directly in box e rather than making an...
- Sun Oct 08, 2023 5:18 pm
- Forum: Personal Finance (Not Investing)
- Topic: CP2000 IRS notice uncovered RSU sale
- Replies: 19
- Views: 2587
Re: CP2000 IRS notice uncovered RSU sale
Some people at my employer have said they have been able to call the IRS and fix the problem by telling them the cost basis over the phone. You could try that first before amending. I'll give that a shot and report back! Thanks for the tip Wait until Wednesday to call. Monday (typically bad day to call) is a holiday. So Tuesday will be bad too because it’s the day after a Monday holiday. If the number of transactions are few (less than 10) you may have luck giving cost basis over the phone. Anything lengthy or complicated is better handled with a written response. Also, do NOT amend. In response to a CP2000 you provide the missing forms or schedules only. The IRS “amends” your return for you through the CP2000. Amending your state, if need...
- Sun Oct 08, 2023 4:13 pm
- Forum: Personal Finance (Not Investing)
- Topic: CP2000 IRS notice uncovered RSU sale
- Replies: 19
- Views: 2587
Re: CP2000 IRS notice uncovered RSU sale
I don't know the laws, but..diy60 wrote: ↑Sun Oct 08, 2023 3:08 pmI rec'd RSUs for 20 years. A portion of the shares (approx 30%, rounded to the nearest whole shares) were always withheld by my employer at vest. Never once did I report the transaction, as there is nothing to report. Your situation seems very odd.Silly Wabbit wrote: ↑Sun Oct 08, 2023 9:46 am The employer sold shares at vest automatically at vest to withhold taxes but I missed reporting the transactions on schedule D.
I have experience with RSUs at 4 employers. 3 of the 4 withheld the shares directly, and I never received a 1099 (unless I sold afterwards) because there was no sale. The other 1 sold shares to cover the withholding rather than withholding shares directly, which generated a transaction and 1099.
- Sun Oct 08, 2023 9:46 am
- Forum: Personal Finance (Not Investing)
- Topic: CP2000 IRS notice uncovered RSU sale
- Replies: 19
- Views: 2587
Re: CP2000 IRS notice uncovered RSU sale
RSU vesting always got included in our W2's by employer. I am surprised they did not include in your W2. Assume you are certain they did not? Did not think this reporting was optional. It is part of your pay. See here: https://www.tldraccounting.com/restricted-stock-unit-taxes-your-w-2-everything-else-you-should-know/ I am certain that the value of the RSUs at vest are included as wages on our W2 and also noted in Box 14. The employer sold shares at vest automatically at vest to withhold taxes but I missed reporting the transactions on schedule D. The broker dutifully reported the transactions to the IRS who saw the noncovered shares with $0 basis and proposed the entire amount be taxed as gains. The numbers don't line up, of course, becau...
- Sun Oct 08, 2023 9:33 am
- Forum: Personal Finance (Not Investing)
- Topic: CP2000 IRS notice uncovered RSU sale
- Replies: 19
- Views: 2587
- Sat Oct 07, 2023 9:43 pm
- Forum: Personal Finance (Not Investing)
- Topic: CP2000 IRS notice uncovered RSU sale
- Replies: 19
- Views: 2587
Re: CP2000 IRS notice uncovered RSU sale
I'll attach a new form 8949, update my Schedule D form and include RSU release confirmations as evidence.
- Sat Oct 07, 2023 7:52 pm
- Forum: Personal Finance (Not Investing)
- Topic: CP2000 IRS notice uncovered RSU sale
- Replies: 19
- Views: 2587
CP2000 IRS notice uncovered RSU sale
I received a CP2000 IRS notice regarding a few sold-to-cover-tax transactions made automatically by an employer on RSU vest. The RSUs are noncovered so the notice says the cost basis is 0 and gains are owed on the entirety. I forgot to report the transactions because, well, I didn't realize the transactions happened. My other employers cover taxes without a sale. :oops: In any case, I've got release confirmations and a 1099 showing the cost basis for the noncovered RSU sales. The notice suggests sending a completed Schedule D and form 8949. My question - do I fill out both forms with only details of the transactions in question OR do I merge the update into my originally filed schedule D and 8949 forms? The former is much easier to knock ou...
- Sun Jul 16, 2023 9:55 am
- Forum: Investing - Theory, News & General
- Topic: The Final, Definitive Thread on Brokerage Transfer Bonuses
- Replies: 7737
- Views: 1338089
Re: The Final, Definitive Thread on Brokerage Transfer Bonuses
I already had a couple of employer accounts there - rsus, 401k. My best guess is they made a guess based on those.tj wrote: ↑Sun Jul 16, 2023 9:44 amHow did they know you have the sufficient assets?Silly Wabbit wrote: ↑Sun Jul 16, 2023 9:16 amNot a thing! They cold called me.nalor511 wrote: ↑Sun Jul 16, 2023 12:52 amHow'd you contact them and what did you say to elicit the better offer?Silly Wabbit wrote: ↑Sat Jul 15, 2023 11:36 pm Fidelity's "extended" cash offer is solid. $3.5k for 1m, $5k for 2m, $7.5k for 4m and $10k for 5m. I don't know how they decide whether to extend the "standard" or "extended" offer. I was solicited.
- Sun Jul 16, 2023 9:16 am
- Forum: Investing - Theory, News & General
- Topic: The Final, Definitive Thread on Brokerage Transfer Bonuses
- Replies: 7737
- Views: 1338089
Re: The Final, Definitive Thread on Brokerage Transfer Bonuses
Not a thing! They cold called me.nalor511 wrote: ↑Sun Jul 16, 2023 12:52 amHow'd you contact them and what did you say to elicit the better offer?Silly Wabbit wrote: ↑Sat Jul 15, 2023 11:36 pm Fidelity's "extended" cash offer is solid. $3.5k for 1m, $5k for 2m, $7.5k for 4m and $10k for 5m. I don't know how they decide whether to extend the "standard" or "extended" offer. I was solicited.
- Sun Jul 16, 2023 12:50 am
- Forum: Investing - Theory, News & General
- Topic: The Final, Definitive Thread on Brokerage Transfer Bonuses
- Replies: 7737
- Views: 1338089
Re: The Final, Definitive Thread on Brokerage Transfer Bonuses
I suspect by way of my employer's stock program being managed by Fidelity.hmw wrote: ↑Sat Jul 15, 2023 11:43 pmThat is a solid offer. How did you get on their solicitation list?Silly Wabbit wrote: ↑Sat Jul 15, 2023 11:36 pm Fidelity's "extended" cash offer is solid. $3.5k for 1m, $5k for 2m, $7.5k for 4m and $10k for 5m. I don't know how they decide whether to extend the "standard" or "extended" offer. I was solicited.
- Sat Jul 15, 2023 11:36 pm
- Forum: Investing - Theory, News & General
- Topic: The Final, Definitive Thread on Brokerage Transfer Bonuses
- Replies: 7737
- Views: 1338089
Re: The Final, Definitive Thread on Brokerage Transfer Bonuses
Fidelity's "extended" cash offer is solid. $3.5k for 1m, $5k for 2m, $7.5k for 4m and $10k for 5m. I don't know how they decide whether to extend the "standard" or "extended" offer. I was solicited.
- Sat May 13, 2023 8:31 pm
- Forum: Personal Consumer Issues
- Topic: Drip line irrigation valve help
- Replies: 6
- Views: 496
Re: Drip line irrigation valve help
You can't usually remove that line without cutting it. I just make a parallel slice with a utility knife and then you can remove it. 1/2" is 12.7mm, so if it is 12mm, you could probably squeeze a 1/2 valve on that tubing. It does stretch a little, and if the line was left in the sun it should soften up a little. . There's nothing special about that exact valve, so any in-line valve should work as a replacement. This stuff is very low tech. If you can squeeze it together and the fittings don't pop off when it is under pressure, you are good. I have a long dripline like that and I have to replace something every year, so it's pretty useful to be able to DIY it. If it is at the very end of the line, you could just replace it with a screw...
- Sat May 13, 2023 8:29 pm
- Forum: Personal Consumer Issues
- Topic: Drip line irrigation valve help
- Replies: 6
- Views: 496
Re: Drip line irrigation valve help
Bingo. With the 12 millimeter keyword the identical valve was the top search result: https://sprinklersupplystore.com/produc ... valve-12mmadamthesmythe wrote: ↑Sat May 13, 2023 6:54 pm It doesn't look like what I have in the Southwest but
12 could be 12 mm which is a hair smaller than a half inch.
Around here there are two sizes of tubing close to a half inch, one coded blue and one coded green.
I have found removing tubing from that kind of press fitting essentially impossible. Carefully slitting with a drywall cutter might be enough to get it off. Careful is the word here because you don't want to hurt yourself and you don't want to damage the fittings.
I'll trim the existing tube back to remove the broken pipe and attach the new valve
- Sat May 13, 2023 8:18 pm
- Forum: Personal Consumer Issues
- Topic: Drip line irrigation valve help
- Replies: 6
- Views: 496
Re: Drip line irrigation valve help
Cut like butter!
- Sat May 13, 2023 8:13 pm
- Forum: Personal Consumer Issues
- Topic: Drip line irrigation valve help
- Replies: 6
- Views: 496
Re: Drip line irrigation valve help
It doesn't look like what I have in the Southwest but 12 could be 12 mm which is a hair smaller than a half inch. Around here there are two sizes of tubing close to a half inch, one coded blue and one coded green. I have found removing tubing from that kind of press fitting essentially impossible. Carefully slitting with a drywall cutter might be enough to get it off. Careful is the word here because you don't want to hurt yourself and you don't want to damage the fittings. I think you're right the outside diameter of the hard line appear to be right about 12mm. It's not critical for me to have a valve here so maybe I can just plug the broken bit and call it good for a year until next I have the professional sprinkler folks out. I'm guessi...
- Sat May 13, 2023 6:41 pm
- Forum: Personal Consumer Issues
- Topic: Drip line irrigation valve help
- Replies: 6
- Views: 496
Drip line irrigation valve help
I've got a few, what I understand to be, sub-surface drip line irrigation zones. A valve at the end of one line sprayed water when I kicked it on this spring due to crack but I can't find a match for it at Lowe's or home depot. Half inch is bigger and quarter inch is smaller. Does anyone know what type of valve and tubing I'm looking for? The only lettering on it looks to be "T5" or maybe "TS" and the numbers "12" Also, how on earth do I remove a fitting from tubing? I broke the tube when trying :oops: Here's what I've got: https://i.postimg.cc/Hs1RmvBW/PXL-20230513-182413840.jpg https://i.postimg.cc/0rNpxq4H/PXL-20230513-175141869.jpg https://i.postimg.cc/14YD3jhR/PXL-20230513-175201557.jpg https://i.postimg.c...
- Wed Apr 12, 2023 10:46 pm
- Forum: Personal Finance (Not Investing)
- Topic: Death, margin and taxes
- Replies: 14
- Views: 1317
Re: Death, margin and taxes
That makes sense to me!CAsage wrote: ↑Wed Apr 12, 2023 11:20 am Based on my personal experience settling a couple family estates (not a lawyer or CPA), I think the brokerage would pay off the loan before the beneficiary took the remaining asset, and any interest would be reflected on your final tax return (i.e. Jan- death). This would be the same premise as a mortgage loan on a house - you don't get the house free of the mortgage loan.
My recent experience - 6 months in, assets from a brokerage account with named beneficiaries are still not distributed and the margin loan remains open.
- Tue Apr 11, 2023 10:34 pm
- Forum: Personal Finance (Not Investing)
- Topic: Death, margin and taxes
- Replies: 14
- Views: 1317
Death, margin and taxes
Let's say I'm carrying a margin balance when death knocks on my door. What happens to the loan? Does it depend on whether I have beneficiaries set or not? Who claims the margin interest as a deduction? What if there's a margin call?
- Sun Mar 12, 2023 10:40 am
- Forum: Personal Finance (Not Investing)
- Topic: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit
- Replies: 1772
- Views: 194856
Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit
I haven't followed this thread recently but there was a lot of discussion as to whether canceling the policy used to get an exemption would be allowable. The state website now has language confirming this: "If you already have an approved exemption, it’s up to you to decide to maintain or cancel your private long-term care policy." https://wacaresfund.wa.gov/private-insurance/ Can I still apply for a private LTC insurance exemption? No. Those who had private long-term care insurance on or before Nov. 1, 2021, were able to apply for an exemption from the WA Cares Fund from Oct. 1, 2021, until Dec. 31, 2022. This opt-out provision is no longer available. Can I cancel my private LTC insurance since the program was delayed? The legisl...
- Tue Mar 07, 2023 12:02 am
- Forum: Personal Finance (Not Investing)
- Topic: Equity Unlocker: mortgages for Amazon employees
- Replies: 8
- Views: 994
Re: Equity Unlocker: mortgages for Amazon employees
That offering differs in at least one way - it's subject to margin calls! The better.com offering is notidunno246 wrote: ↑Mon Mar 06, 2023 11:33 pm this isnt special and most banks will do it, it's just marketing. rsu are just stocks once vested, so its just a pledged asset mortgage, for example: https://advisor.morganstanley.com/wilke ... -25-19.pdf I worked with people at a big tech company that did this.
violating the insider traders clause is worrying though - they acknowledge it violates it if you default
- Mon Mar 06, 2023 11:58 pm
- Forum: Personal Finance (Not Investing)
- Topic: Equity Unlocker: mortgages for Amazon employees
- Replies: 8
- Views: 994
Re: Equity Unlocker: mortgages for Amazon employees
Thanks for the reference! So our pledged asset mortgages a good deal?idunno246 wrote: ↑Mon Mar 06, 2023 11:33 pm this isnt special and most banks will do it, it's just marketing. rsu are just stocks once vested, so its just a pledged asset mortgage, for example: https://advisor.morganstanley.com/wilke ... -25-19.pdf I worked with people at a big tech company that did this.
violating the insider traders clause is worrying though - they acknowledge it violates it if you default
You know, if I'm defaulting on my mortgage, a bit of low-key insider trading will be the least of my problems. Obviously, I'm assuming there's not a conspiracy to strategically default, which would just be dumb.
- Mon Mar 06, 2023 11:11 pm
- Forum: Personal Finance (Not Investing)
- Topic: Equity Unlocker: mortgages for Amazon employees
- Replies: 8
- Views: 994
Equity Unlocker: mortgages for Amazon employees
https://better.com/b/equity-unlocker-amazon I'm not an employee of Amazon, but I'm interested to learn if similar offerings exist for the general public and if they're great (or terrible) deals. Is this a good deal? Should I work for Amazon right away? Are such products commonly offered by private banks? How much wealth do I need before fancy institutions trip over themselves to lend me money under exotic terms? My read on how it works - rather than selling your vested Amazon RSUs to cover a mortgage down payment, you borrow, up to, the entirety of purchase price and pledge your vested RSUs as collateral. In practice, it looks like this is a second mortgage that's secured by both the property, in the second position, and the RSUs. The rate...
- Mon Mar 06, 2023 10:54 pm
- Forum: Personal Investments
- Topic: Anyone make use of securities backed loans for house down payments?
- Replies: 15
- Views: 2238
Re: Anyone make use of securities backed loans for house down payments?
What's the advantage of a PAL compared to margin? My experience - I opened a PAL account at Schwab at the same time I financed a mortgage through Rocket with Schwab. The rate was bad, they wouldn't negotiate and the PAL folks were unresponsive - it's a different group than the regular brokerage folks whom were unable to help with anything PAL related. I ditched the PAL and negotiated my margin rate at Schwab against IBKR. Initially they wouldn't match IBKR. I was committed to moving; the transfer was in progress, but a Schwab retention person called me and got the margin rate down so I stayed. My experience with the non-PAL side of Schwab is consistently great . The rocket mortgage Schwab team was great too. Very responsive. My only mistak...
- Mon Mar 06, 2023 9:33 pm
- Forum: Personal Investments
- Topic: Anyone make use of securities backed loans for house down payments?
- Replies: 15
- Views: 2238
Re: Anyone make use of securities backed loans for house down payments?
What's the advantage of a PAL compared to margin? My experience - I opened a PAL account at Schwab at the same time I financed a mortgage through Rocket with Schwab. The rate was bad, they wouldn't negotiate and the PAL folks were unresponsive - it's a different group than the regular brokerage folks whom were unable to help with anything PAL related. I ditched the PAL and negotiated my margin rate at Schwab against IBKR. Initially they wouldn't match IBKR. I was committed to moving; the transfer was in progress, but a Schwab retention person called me and got the margin rate down so I stayed. My experience with the non-PAL side of Schwab is consistently great . The rocket mortgage Schwab team was great too. Very responsive. My only mistake...
- Thu Mar 02, 2023 10:50 am
- Forum: Personal Investments
- Topic: Transferring HSA to Fidelity (nervous!)
- Replies: 26
- Views: 2973
Re: Transferring HSA to Fidelity (nervous!)
I've done a few transfers to Fidelity from a couple different firms. In all cases, I had to manually sell holdings because only cash was transferable. The transfers went off without a hitch although they were quite slow! Unfortunately, one transfer did not go smoothly - the check was lost in the mail, and the sending form issued a stop payment, but they never reissued the check. It took a few calls to get things rolling again.
- Wed Mar 01, 2023 10:00 pm
- Forum: Personal Finance (Not Investing)
- Topic: New Construction Home - hedge against downturn?
- Replies: 11
- Views: 1236
Re: New Construction Home - hedge against downturn?
Sell now and rent until your new home is ready. There's obvious downsides.
Buy some put options!
Find a financial instrument, probably a reit, whose price you predict will correlate strongly with your home's price over the next couple years. Buy puts with an expiration and strike price that you feel comfortable with.
If your homes price tumbles and your correlation thesis holds, you'll sell your home for a lower price and make money on the puts
On the other hand, if your home's price soars, you'll make out selling it and your puts will expire worthless.
In either case, you'll pay an option premium for the privilege!
P.s. probably a bad idea
Buy some put options!
Find a financial instrument, probably a reit, whose price you predict will correlate strongly with your home's price over the next couple years. Buy puts with an expiration and strike price that you feel comfortable with.
If your homes price tumbles and your correlation thesis holds, you'll sell your home for a lower price and make money on the puts
On the other hand, if your home's price soars, you'll make out selling it and your puts will expire worthless.
In either case, you'll pay an option premium for the privilege!
P.s. probably a bad idea
- Wed Mar 01, 2023 11:01 am
- Forum: Personal Consumer Issues
- Topic: How to keep rabbits off lawn?
- Replies: 61
- Views: 4901
Re: How to keep rabbits off lawn?
Did you overseed in the spring? In my experience, without regular overseeding, thin and bare spots will develop. I catch rabbits on camera regularly and they never seem to do much harm to my lawn. Racoons on the other hand love to dig for, I think, grubs. They're mostly harmless, but occasionally one will do some damage. I tried anti-pest granules - mostly black pepper afaict - that seemed to keep them away but maintaining barriers was both ugly and high maintenance. Moles are the worst. They come and go as they please. I'll have years of peace be interrupted by a sudden barrage of holes. I've tried most techniques - ground stakes, traps, poison, etc - but I'm unconvinced they have an impact - the moles do what they please! Best to get used...
- Wed Mar 01, 2023 10:48 am
- Forum: Personal Finance (Not Investing)
- Topic: Does Schwab report held box spreads on 1099?
- Replies: 6
- Views: 687
Re: Does Schwab report held box spreads on 1099?
Schwab has a description of taxation here: https://advisorservices.schwab.com/content/how-are-options-taxed#:~:text=Internal%20Revenue%20Code%20section%201256,short%20term%20capital%20gains%20rates. Based on that, the IRS form ( https://www.irs.gov/pub/irs-access/f6781_accessible.pdf ) and other posts here, I'm fairly confident in my understanding. It's still unclear to me whether brokers should (must) report section 1256 contracts and their marked to market value I dk about Schwab as I only hold ETFs there. At IBKR, I have futures and got 1256 info. Did you ask Schwab? Thanks! Box 10 on form 1099-B? Yeah, I called them today and they promised to get back to me after researching with their client reporting function. Yeah box 8,9,10, and 11...
- Fri Feb 24, 2023 9:05 am
- Forum: Investing - Theory, News & General
- Topic: Investigative Report: Using TLH and Avoiding Wash Sales to Save Taxes
- Replies: 59
- Views: 6363
Re: Investigative Report: Using TLH and Avoiding Wash Sales to Save Taxes
Some bits are just plain wrong! Long term losses can be applied to short term gains after netting out against any long term gains. Combine TLH with an upward trending market generally and it's no surprise long term losses are relatively less common than short term ones In the U.S., short-term gains, those sold less than a year after buying, are taxed at about twice the rate (around 40% for the top bracket) as long-term gains. That makes short-term losses more valuable since they reduce this higher tax rate income. In 2018, almost two-thirds of Americans with income over $10 million reported net short-term losses. That was the highest share of any income slice; with more income, counterintuitively, came more losses — at least, on their taxes...
- Fri Feb 17, 2023 5:34 pm
- Forum: Personal Finance (Not Investing)
- Topic: Does Schwab report held box spreads on 1099?
- Replies: 6
- Views: 687
Re: Does Schwab report held box spreads on 1099?
Thanks! Box 10 on form 1099-B?typical.investor wrote: ↑Fri Feb 17, 2023 5:31 pmI dk about Schwab as I only hold ETFs there.Silly Wabbit wrote: ↑Fri Feb 17, 2023 12:28 pm Schwab has a description of taxation here: https://advisorservices.schwab.com/cont ... s%20rates.
Based on that, the IRS form (https://www.irs.gov/pub/irs-access/f6781_accessible.pdf) and other posts here, I'm fairly confident in my understanding. It's still unclear to me whether brokers should (must) report section 1256 contracts and their marked to market value
At IBKR, I have futures and got 1256 info.
Did you ask Schwab?
Yeah, I called them today and they promised to get back to me after researching with their client reporting function.
- Fri Feb 17, 2023 12:28 pm
- Forum: Personal Finance (Not Investing)
- Topic: Does Schwab report held box spreads on 1099?
- Replies: 6
- Views: 687
Re: Does Schwab report held box spreads on 1099?
Schwab has a description of taxation here: https://advisorservices.schwab.com/cont ... s%20rates.
Based on that, the IRS form (https://www.irs.gov/pub/irs-access/f6781_accessible.pdf) and other posts here, I'm fairly confident in my understanding. It's still unclear to me whether brokers should (must) report section 1256 contracts and their marked to market value
Based on that, the IRS form (https://www.irs.gov/pub/irs-access/f6781_accessible.pdf) and other posts here, I'm fairly confident in my understanding. It's still unclear to me whether brokers should (must) report section 1256 contracts and their marked to market value
- Wed Feb 15, 2023 7:25 pm
- Forum: Personal Finance (Not Investing)
- Topic: Does Schwab report held box spreads on 1099?
- Replies: 6
- Views: 687
Does Schwab report held box spreads on 1099?
Box spreads held through years end are considered section 1256 contracts and any marked-to-market gains or losses, as of Dec 31, should be reported, right?
Do brokers include these details on form 1099, specifically Schwab?
I held SPX options contracts through 2022 year end. Today, I got my 1099 and there's nothing on it about the box spreads. In case it matters - I transfered the spreads from another broker to Schwab in 2022.
Do brokers include these details on form 1099, specifically Schwab?
I held SPX options contracts through 2022 year end. Today, I got my 1099 and there's nothing on it about the box spreads. In case it matters - I transfered the spreads from another broker to Schwab in 2022.
- Thu Jan 26, 2023 9:55 pm
- Forum: Personal Finance (Not Investing)
- Topic: What’s Your 2023 Budget?
- Replies: 201
- Views: 26128
- Wed Jan 25, 2023 9:14 pm
- Forum: Personal Finance (Not Investing)
- Topic: What’s Your 2023 Budget?
- Replies: 201
- Views: 26128
- Wed Jan 25, 2023 8:51 pm
- Forum: Personal Finance (Not Investing)
- Topic: What’s Your 2023 Budget?
- Replies: 201
- Views: 26128
- Mon Aug 22, 2022 9:02 am
- Forum: Personal Investments
- Topic: Taxes and In-Plan Roth Rollover
- Replies: 10
- Views: 1121
Re: Taxes and In-Plan Roth Rollover
How about selecting an investment for after-tax contributions that is unlikely to make or lose a ton of money? E.g. a money market. Once converted, invest the money as normal
- Mon Aug 22, 2022 8:58 am
- Forum: Personal Finance (Not Investing)
- Topic: Significantly hacked, clarify what else I need to do
- Replies: 66
- Views: 9613
Re: Significantly hacked, clarify what else I need to do
This sucks, I'm sorry.
Lock down your cell phone account as much as possible. Change your recovery questions to random nonsense and save them in your password manager; the usual questions are too easily guessable. Enable any additional security offered: number lock, etc.
Google's security is solid. Remove any recovery questions and use MFA other than SMS for the account, ideally yubikey.
Lock down your cell phone account as much as possible. Change your recovery questions to random nonsense and save them in your password manager; the usual questions are too easily guessable. Enable any additional security offered: number lock, etc.
Google's security is solid. Remove any recovery questions and use MFA other than SMS for the account, ideally yubikey.
- Tue Aug 09, 2022 8:42 pm
- Forum: Personal Investments
- Topic: Too nervous about giving up my passwords to use Personal Capital
- Replies: 148
- Views: 14199
Re: Too nervous about giving up my passwords to use Personal Capital
For well integrated institutions, e.g. Chase, PC never sees your credentials. Instead, you authenticate directly with the institution and the institution issues a revokable, readonly token to PC, which can be used by PC to fetch your data.
This mechanism is far more secure by way of never exposing your credentials and only granting read-only access
Here's a related article: https://www.bankingdive.com/news/jpmorg ... ss/569689/
Obviously not all companies are well integrated, and there are risks beyond credential disclosure, but it's not something I lose sleep about
This mechanism is far more secure by way of never exposing your credentials and only granting read-only access
Here's a related article: https://www.bankingdive.com/news/jpmorg ... ss/569689/
Obviously not all companies are well integrated, and there are risks beyond credential disclosure, but it's not something I lose sleep about
- Thu Aug 04, 2022 8:54 pm
- Forum: Personal Finance (Not Investing)
- Topic: Margin Loan instead of Mortgage.
- Replies: 83
- Views: 5270
Re: Margin Loan instead of Mortgage.
Will you guys please give me a idea of what percentage of drop causes margin call? Just a number Do the math? Seriously though, margin requirements vary by brokerage and account type (reg-t vs portfolio). Let's say you've got a reg-t account without any extra broker applied requirements, the maintenance margin requirement is 25%. Borrow and withdraw 25% against a $1.2m portfolio for an initial state of: equity: 900k, portfolio value: 1200k, cash: 300k. Question is, what's the maximum drawdown before your equity hits 25%. In other words, when will your portfolio hit 400k, yeah? (400-300)/400=.25. 1-(400/1200)=.66. A 66% drop and you'd be on the verge of a margin call. Formulaically, the max drawdown for a borrow % (B) and a maintenance marg...
- Sun Jul 31, 2022 5:16 pm
- Forum: Personal Finance (Not Investing)
- Topic: Buying a new home using Home Equity loan
- Replies: 10
- Views: 1612
Re: Buying a new home using Home Equity loan
You can totally take out a HELOC and pay cash. Don't advertise to the lender that you plan to pay it off in short order.
I'd just get a mortgage on the new home. Take a higher rate in exchange for lender credits to cover costs. A "no cost" mortgage, if you will. The rate is of little concern since you plan to pay the loan off soon. Again, don't advertise you plan to pay it off in short order.
I'd just get a mortgage on the new home. Take a higher rate in exchange for lender credits to cover costs. A "no cost" mortgage, if you will. The rate is of little concern since you plan to pay the loan off soon. Again, don't advertise you plan to pay it off in short order.
- Sun Jul 10, 2022 9:17 pm
- Forum: Personal Finance (Not Investing)
- Topic: I am looking for SBLOC available Brokerage
- Replies: 18
- Views: 2523
Re: I am looking for SBLOC available Brokerage
Any other recommendations for brokerage? If you don't mind complexity, take a look at box spread loans. Here's a long thread about them: https://www.bogleheads.org/forum/viewtopic.php?t=344667&start=1050 https://www.schwab.com/margin/margin-rates-and-requirements Is this even correct? 8.5 percent for the loan? If this is the case, no need to even open up a schwab account. However, PAL at schwab is much lower at 3-4 percent https://www.schwab.com/pledged-asset-line IBKR does show the lowest rate! https://www.interactivebrokers.com/en/trading/margin-rates.php M1 is around 3.5 percent https://m1.com/borrow/margin-loans/ Sounds right. The big consumer brokerages have terrible margin rates unless you bring assets and negotiate. A note on th...
- Sun Jul 10, 2022 9:06 pm
- Forum: Personal Finance (Not Investing)
- Topic: I am looking for SBLOC available Brokerage
- Replies: 18
- Views: 2523
Re: I am looking for SBLOC available Brokerage
Yes, they are a large and well managed brokerage. You can find many threads about them on this forum.
The website will tell you the blended rate for a given loan balance - they tier rates based on balance. IBKR will give you the best rates and relatively recent changes removed the biggest cost - inactivity fees - so I'd assume IBKR pro.
- Sun Jul 10, 2022 7:49 pm
- Forum: Personal Finance (Not Investing)
- Topic: I am looking for SBLOC available Brokerage
- Replies: 18
- Views: 2523
Re: I am looking for SBLOC available Brokerage
If you don't mind complexity, take a look at box spread loans. Here's a long thread about them: viewtopic.php?t=344667&start=1050
- Sun Jul 10, 2022 7:47 pm
- Forum: Personal Finance (Not Investing)
- Topic: I am looking for SBLOC available Brokerage
- Replies: 18
- Views: 2523
Re: I am looking for SBLOC available Brokerage
Can you clarify how SBLOC differs from margin account? I am so confused. I get that I borrow money against my equities and I can use the money for any purpose (Like HELOC) but whats the difference? If vanguard allows margin account where I can use the borrowed money for anything, id stick with that then changing to another brokerage account. Vanguard allows for margin accounts. The rates aren't very good compared to Interactive Brokers or negotiated rates at Charles Schwab, et al., but you can do it. The SBLOCS I've seen restrict how borrowed monies can be used - you can't buy securities, stocks, using the money. Compare this to a margin account where you can use the money for anything, including securities. Margin requirements and how bre...
- Sun Jul 10, 2022 5:30 pm
- Forum: Personal Finance (Not Investing)
- Topic: I am looking for SBLOC available Brokerage
- Replies: 18
- Views: 2523
Re: I am looking for SBLOC available Brokerage
Securities based line of credit. I see little practical difference between a SBLOC, called a PAL (pledged asset line) at Schwab, and a regular margin account. Interest rates are comparable or worse. Funds cannot be used to purchase securities. Margin calls still happen, but *may* be more friendly than, say, interactive brokers. At Schwab, you can't easily transfer into or out of a PAL account and the customer service experience is terrible - the bank is a distinct entity from the brokerage. I tried a PAL and ended up going back to a regular margin account with a heavily negotiated rate Can you clarify how SBLOC differs from margin account? I am so confused. I get that I borrow money against my equities and I can use the money for any purpo...
- Sun Jul 10, 2022 5:15 pm
- Forum: Personal Finance (Not Investing)
- Topic: I am looking for SBLOC available Brokerage
- Replies: 18
- Views: 2523
Re: I am looking for SBLOC available Brokerage
Securities based line of credit. I see little practical difference between a SBLOC, called a PAL (pledged asset line) at Schwab, and a regular margin account. Interest rates are comparable or worse. Funds cannot be used to purchase securities. Margin calls still happen, but *may* be more friendly than, say, interactive brokers. At Schwab, you can't easily transfer into or out of a PAL account and the customer service experience is terrible - the bank is a distinct entity from the brokerage. I tried a PAL and ended up going back to a regular margin account with a heavily negotiated rate Can you clarify how SBLOC differs from margin account? I am so confused. I get that I borrow money against my equities and I can use the money for any purpo...
- Sun Jul 10, 2022 4:32 pm
- Forum: Personal Finance (Not Investing)
- Topic: I am looking for SBLOC available Brokerage
- Replies: 18
- Views: 2523
Re: I am looking for SBLOC available Brokerage
Securities based line of credit.
I see little practical difference between a SBLOC, called a PAL (pledged asset line) at Schwab, and a regular margin account.
Interest rates are comparable or worse. Funds cannot be used to purchase securities. Margin calls still happen, but *may* be more friendly than, say, interactive brokers.
At Schwab, you can't easily transfer into or out of a PAL account and the customer service experience is terrible - the bank is a distinct entity from the brokerage. I tried a PAL and ended up going back to a regular margin account with a heavily negotiated rate
I see little practical difference between a SBLOC, called a PAL (pledged asset line) at Schwab, and a regular margin account.
Interest rates are comparable or worse. Funds cannot be used to purchase securities. Margin calls still happen, but *may* be more friendly than, say, interactive brokers.
At Schwab, you can't easily transfer into or out of a PAL account and the customer service experience is terrible - the bank is a distinct entity from the brokerage. I tried a PAL and ended up going back to a regular margin account with a heavily negotiated rate