Search found 2054 matches

by cowdogman
Sun Mar 17, 2024 10:42 am
Forum: Personal Finance (Not Investing)
Topic: New Form 7206 (SEHID) and TurboTax
Replies: 52
Views: 4475

Re: New Form 7206 (SEHID) and TurboTax

dan-h wrote: Sat Mar 16, 2024 9:42 pm
talzar mentions: "Form 7206 is e-filed as a PDF attachment. That's probably why the form is not supported by the desktop version of TurboTax."
Even tho it may be a pdf. TT should still be able to complete the form correctly.

I gave up waiting and filed with TT a week or two ago. I just now updated TT and checked--7206 is still incorrect in Line 1 (but with a footnote).
by cowdogman
Fri Mar 15, 2024 11:25 am
Forum: Personal Finance (Not Investing)
Topic: What's your primary credit card?
Replies: 117
Views: 10239

Re: What's your primary credit card?

jeffyscott wrote: Fri Mar 15, 2024 9:03 am
BF3000 wrote: Mon Mar 11, 2024 8:13 pm
azanon wrote: Mon Mar 11, 2024 9:56 am Alliant Visa Signature - 2.5% cash back on all purchases.
This. Because 2.5% > 2%.
From what I see on their website, in order to get 2.5%, Alliant requires an average daily balance of $1,000 or more in a checking account that pays nearly nothing (0.25%). Keeping an extra $1000 in checking offsets the extra 0.5% on about $8-10K of purchases per year.
Yes. I put about $60,000/year on the card and so the extra 0.5% is worth about $300/year (tax free)--vs. about $45 (taxable) in lost HY interest on the $1,000. Plus, as I often remind myself, HY savings accounts will not be paying 4.5% for very long (I think).

Not big dollars to be sure, but easy money.
by cowdogman
Thu Mar 14, 2024 7:03 pm
Forum: Personal Finance (Not Investing)
Topic: What's your primary credit card?
Replies: 117
Views: 10239

Re: What's your primary credit card?

fittan wrote: Thu Mar 14, 2024 11:08 am
BF3000 wrote: Mon Mar 11, 2024 8:13 pm
azanon wrote: Mon Mar 11, 2024 9:56 am Alliant Visa Signature - 2.5% cash back on all purchases.
This. Because 2.5% > 2%.
Bank of America travel reward. Because 2.625% > 2.5%.
Alliant Visa Signature - 2.5% cash back on all purchases (up to $10,000 month). Because it's worth giving up 0,125% not to have $100,000+ stuck in a Merrill Edge account (and not to have to deal with BofA).
by cowdogman
Sun Mar 10, 2024 11:30 am
Forum: Personal Finance (Not Investing)
Topic: Vendor unable to challenge customer's reversal of credit card charge
Replies: 29
Views: 3736

Re: Vendor unable to challenge customer's reversal of credit card charge

AAA wrote: Sat Mar 09, 2024 6:48 pm The problem is that the payment provider is telling him he has to talk to the bank that issued the card.
If the payment provider will not deal with the bank then it needs to be cut out of the middle. Otherwise disputed charges will always be charged back to your friend.

Take a look the following to see how payment processors address disputes: https://fingerprint.com/blog/how-major- ... 0processor.
by cowdogman
Sun Mar 10, 2024 11:16 am
Forum: Personal Finance (Not Investing)
Topic: Termination of Unfunded Solo 401(k)
Replies: 18
Views: 1715

Re: Termination of Unfunded Solo 401(k)

Asciiichag wrote: Sun Mar 10, 2024 10:18 am
cowdogman wrote: Wed Jun 01, 2022 4:10 pm For the Plan Characteristic codes I am thinking: 2E, 2J, 2R, 2T, 3B, 3D and 3H.

3H is the only one on which I'm hesitating: "Plan sponsor(s) is (are) a member(s) of a controlled group, or affiliated service group (section 414(b), (c), or (m))."

Any follow up on which plan characteristics code you used when filing your 5500EZ?
Thanks!
Just filed for 2023: 2E 3D 2J 3B 2R 3H. Not sure why I was thinking 2T before.

2023 is the last year for 3H for me given the changes in Secure Act 2.0. viewtopic.php?p=7740927#p7740927
by cowdogman
Sat Mar 09, 2024 10:45 am
Forum: Personal Finance (Not Investing)
Topic: Home office deduction - simplified vs. actual
Replies: 17
Views: 1955

Re: Home office deduction - simplified vs. actual

billaster wrote: Sat Mar 09, 2024 10:24 am As to 1, if you have your home office as principal place of business, you may as well take the home office deduction.
If the taxpayer meets the exclusive use test.

We take the home office deduction for my wife's biz but not mine--her space is exclusive, I just work out of the den. I realize I'm probably being conservative in this approach.
by cowdogman
Sat Mar 09, 2024 9:28 am
Forum: Personal Finance (Not Investing)
Topic: Home office deduction - simplified vs. actual
Replies: 17
Views: 1955

Re: Home office deduction - simplified vs. actual

billaster wrote: Wed Mar 06, 2024 5:07 pm Also note that for some people, the home office deduction is less valuable than the fact that you can deduct all mileage from your home to any client locations. Normally mileage from your home is considered normal commuting and non-deductible, but you can deduct it as business mileage if you are departing from your home office.
Are you saying:

1. a taxpayer has to take the home office deduction in order to deduct mileage for travel from home or

2. a taxpayer has to have a home office as his principal place of business in order to deduct mileage for travel from home or

3. both?

2 is true but I don't think 1 or 3 is.
by cowdogman
Sat Mar 09, 2024 9:21 am
Forum: Personal Finance (Not Investing)
Topic: Multiple Solo 401(k)
Replies: 28
Views: 1994

Re: Multiple Solo 401(k)

> do a direct trustee-to-trustee transfer of all plan assets from Vanguard to the new custodian. Thanks but can you elaborate on this? If I get a check from Vanguard and then send mail it to the trustee is that not acceptable? Unfortunately, ACAT is not an option. And I am concerned that direct paper checks might get lost or delayed. That's not how it works. Vanguard will send you a check payable to "new plan provider FBO you". You will then mail that check to your new provider. FBO = for benefit of I believe (haven't done it myself) that if you call, say, Fidelity and say you would like to transfer your 401(k) plan (not account) to to Fidelity, Fidelity will provide you with the necessary paperwork and once that is completed, Fi...
by cowdogman
Tue Mar 05, 2024 8:23 pm
Forum: Personal Finance (Not Investing)
Topic: Home office deduction - simplified vs. actual
Replies: 17
Views: 1955

Re: Home office deduction - simplified vs. actual

I believe I will be using a home office for the next five or so years. Therefore, keeping things even, I will get an extra $1100 ($220 * 5) in my pocket. But, If I sell my home in say 6 years, I don't know what kind of taxes I would have to pay when my home is sold for a gain and I recapture the depreciation. My understanding is that the simplified approach doesn't depreciate your home. But if you do the actual approach, your home is depreciated regardless if you take the depreciation or not. I agree the simple approach is better for you. Or, at least, it's what I would do. You don't have to deal with recapture. I have a much larger home deduction (expensive house, high real property taxes, expensive insurance) and so go with the actual ca...
by cowdogman
Tue Mar 05, 2024 6:34 pm
Forum: Personal Finance (Not Investing)
Topic: Home office deduction - simplified vs. actual
Replies: 17
Views: 1955

Re: Home office deduction - simplified vs. actual

BogleBall2 wrote: Tue Mar 05, 2024 6:17 pm Turbotax calculated the depreciation of $640 resulting in the $220 of actual tax savings.
Maybe I'm misunderstanding.

Under the non-simplified approach, you would take the calculated depreciation and add to it 5% of property taxes, home-wide maintenance, home insurance, utilities, etc. to come up with your home office deduction.

Under the simplified method, your deduction is $5 x the relevant square footage.

If you're saying depreciation alone is giving you a tax savings of $220, then your actual home office deduction savings are going to be higher when you add on property taxes, etc.

Or maybe you meant to say "Turbotax calculated the home office deduction of $640 resulting in the $220 of actual tax savings".
by cowdogman
Tue Mar 05, 2024 10:01 am
Forum: Personal Finance (Not Investing)
Topic: Home office deduction - simplified vs. actual
Replies: 17
Views: 1955

Re: Home office deduction - simplified vs. actual

I saw this thread and I have similar questions, but they are slightly different from the original poster. I do my own taxes via TurboTax, so I'm not a tax expert. I own a small business where the home office is 165 SF (about 5% of the size of the home). I am thinking I may have the business for another five years. Perhaps I sell the house then or continue to live in it. Using Turbotax, if I use actuals, I save an $220 in taxes this year (over simplified method) and depreciate my home by $640. If I use the simplified method, I will pay an extra $220 in taxes, but don't have to recapture the depreciation wherever I sell the home. I am in the 22% tax bracket. Saving $220 in taxes isn't material to me. I am more concerned that whenever I sell ...
by cowdogman
Sun Mar 03, 2024 4:51 pm
Forum: Personal Finance (Not Investing)
Topic: E*Trade solo 401(k) Form 5500-EZ filing
Replies: 17
Views: 1694

Re: E*Trade solo 401(k) Form 5500-EZ filing

I just filed my 5500-EZ on EFAST.

A couple things to note:

1. When you electronically sign the 5500-EZ you are NOT done. Go back to the main screen and click the Submit button and follow the prompts to submit the form.

2. Print the PDF after you submit--the PDF will have the signature line filled in.

After submitting you should immediately get an email with a confirm number from EFAST.

Who knows how many people sign and then think they are done!
by cowdogman
Sun Mar 03, 2024 12:29 pm
Forum: Personal Finance (Not Investing)
Topic: 1099-Misc from W2 employer and self employment taxes
Replies: 4
Views: 369

Re: 1099G from W2 employer and self employment taxes

Which box(es) was(were) filled in on the 1099-G? Box 1 (unemployment compensation)?

If you FICA'ed out on wages you'll owe no more social security, tho you still may owe Medicare tax. However, unemployment comp is not generally subject to Social Security and Medicare taxes.
by cowdogman
Sat Mar 02, 2024 10:58 am
Forum: Personal Finance (Not Investing)
Topic: Real Stories of College Savings: what was your plan, and what happened?
Replies: 98
Views: 7338

Re: Real Stories of College Savings: what was your plan, and what happened?

jameskay wrote: Sat Mar 02, 2024 10:45 am
Looking Back:
- Definitely dont regret using 529s but would have contributed less spread out over more years.
If I had to do it over I would allocated the same amount of money to 529s and a dedicated taxable account--50/50, 60/40, some allocation.
by cowdogman
Sat Mar 02, 2024 10:32 am
Forum: Personal Finance (Not Investing)
Topic: Real Stories of College Savings: what was your plan, and what happened?
Replies: 98
Views: 7338

Re: Real Stories of College Savings: what was your plan, and what happened?

I was in a similar situation to you, but two kids. We "fully funded" each of our kid's 529 when born. By "fully fund" we decided to fund them in an amount equal to 4 years at the most expensive college at the time. If I remember correctly, it was Harvard at circa $50K/year (so $200K total). So we each put in the five year max initially for each son and then the max each year for each until we hit the goal. The money roughly doubled by the time for college (as did costs). First son went to a good (not top) private school but got a large scholarship and then he went on to grad school. His account is now empty, but we also took withdrawals against the scholarship at the end (pay tax on the withdrawal but not the penalty). I...
by cowdogman
Sat Mar 02, 2024 9:59 am
Forum: Personal Finance (Not Investing)
Topic: wire transfer out of Marcus account
Replies: 18
Views: 6352

Re: wire transfer out of Marcus account

greeny1217 wrote: Sat Mar 02, 2024 1:31 am what happened at the end? I am in the same situation, I need to withdraw money to escrow now!
See whoiskaiyo's post above. Same thing happened to me (and jhurff above).
by cowdogman
Thu Feb 29, 2024 2:28 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401(k)--No Longer a Controlled Group--Next Steps
Replies: 12
Views: 819

Re: Solo 401(k)--No Longer a Controlled Group--Next Steps

Just thought of another option: I could login to Vanguard Small Business for the plan and change my participant status to "inactive"--as if I left employment but kept my assets in the plan. That would allow me to kick the can down the road and keep my Trad IRA balance at zero (for backdoor Roths). I could no longer make contributions to the 401(k), but I have no current business income and so that doesn't matter. That raises the question of whether an employee of a no longer affiliated employer can remain in the plan. The plan doc might have something to say about that, not sure. You could always become an employee of your spouse's company as a way around that. Or become an owner, director, or shareholder, so that the controlled ...
by cowdogman
Thu Feb 29, 2024 12:34 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401(k)--No Longer a Controlled Group--Next Steps
Replies: 12
Views: 819

Re: Solo 401(k)--No Longer a Controlled Group--Next Steps

Your option #2 above seems like a nice end-run around the issue of how to switch from being an related employer to being your own plan sponsor, unless you need the extra contribution space or Backdoor Roth ability. Other than that it sounds reasonable to me assuming you don't want to remain in a controlled group. Just thought of another option: I could login to Vanguard Small Business for the plan and change my participant status to "inactive"--as if I left employment but kept my assets in the plan. That would allow me to kick the can down the road and keep my Trad IRA balance at zero (for backdoor Roths). I could no longer make contributions to the 401(k), but I have no current business income and so that doesn't matter. For suc...
by cowdogman
Thu Feb 29, 2024 11:50 am
Forum: Personal Finance (Not Investing)
Topic: Solo 401(k)--No Longer a Controlled Group--Next Steps
Replies: 12
Views: 819

Re: Solo 401(k)--No Longer a Controlled Group--Next Steps

MP123 wrote: Thu Feb 29, 2024 11:35 am Your option #2 above seems like a nice end-run around the issue of how to switch from being an related employer to being your own plan sponsor, unless you need the extra contribution space or Backdoor Roth ability.

Other than that it sounds reasonable to me assuming you don't want to remain in a controlled group.
Yes, 2 is probably safer and I am now fully retired, but absent this change in law I would have let the 401(k) continue in case I decided to work again.
by cowdogman
Thu Feb 29, 2024 10:55 am
Forum: Personal Finance (Not Investing)
Topic: Solo 401(k)--No Longer a Controlled Group--Next Steps
Replies: 12
Views: 819

Re: Solo 401(k)--No Longer a Controlled Group--Next Steps

terran wrote: Thu Feb 29, 2024 10:47 am Like I said, definitely over my pay grade. When you say the plan won't be terminated, is that because it will continue and be sponsored by your wife's business? So you're really wondering how to get your accounts out of your your wife's plan?
Yes, the current plan will continue as before (no changes) with my wife's business as the sponsor.

My question is how to comply with the change in law--either in setting up a new plan and transferring assets or doing in-service rollovers to a pre-tax IRA and Roth IRA. I know how to move the assets--just want to determine the right way to do so and all that that entails.
by cowdogman
Thu Feb 29, 2024 10:42 am
Forum: Personal Finance (Not Investing)
Topic: Solo 401(k)--No Longer a Controlled Group--Next Steps
Replies: 12
Views: 819

Re: Solo 401(k)--No Longer a Controlled Group--Next Steps

terran wrote: Thu Feb 29, 2024 10:26 am Then I think you're going to need to find out if the 1 year waiting period after closing a plan applies to you.
I don't think the "successor plan rule" applies here because the current plan is not being terminated. See Treasury Reg 1.401(k)-1(d)(4)

I think the "successor plan rule" might be an issue if my business were/continued to be in a controlled group, but now any future plan would be sponsored by a new "employer" (not part of the old "employer").

But I hadn't thought of this issue. Thanks.
by cowdogman
Thu Feb 29, 2024 10:23 am
Forum: Personal Finance (Not Investing)
Topic: Solo 401(k)--No Longer a Controlled Group--Next Steps
Replies: 12
Views: 819

Re: Solo 401(k)--No Longer a Controlled Group--Next Steps

terran wrote: Thu Feb 29, 2024 10:19 am The controlled group parts of this are above my pay grade, but just to clarify/confirm, you shouldn't be closing the old 401(k) plan (which requires waiting 1 year to open a new one) and opening a new one, but rather you should be amending the plan and opening new accounts within the same plan and transferring assets between accounts. Since there's no change in plan I wouldn't think there would a form 5500 change other than changing the feature codes if there are any changes there due to the amendment.
The only "Employers" allowed under the plan are the sponsoring Employer and Related Employers--and my business is neither (as of 1/1/24). So staying in the plan is not an option.
by cowdogman
Thu Feb 29, 2024 9:17 am
Forum: Personal Finance (Not Investing)
Topic: Solo 401(k)--No Longer a Controlled Group--Next Steps
Replies: 12
Views: 819

Solo 401(k)--No Longer a Controlled Group--Next Steps

Several years ago my wife established/sponsored a solo 401(k) at Vanguard for her business—pre-tax and Roth. I have participated in the 401(k) for my wholly separate business as a "Related Employer" under the plan documents, which provide, in part, that a Related Employer is another employer in a controlled group. My wife and I were a controlled group both because (1) we live in a community property state and (2) we have a child under 21. Now under a provision of the Secure Act 2.0 (26 USC 414(b)(2)) effective (for us) January 1, 2024, both of those bases have been removed as creating a controlled group. So, my business is no longer in a controlled group and therefore no longer a Related Employer under the plan. Section 414(b)(2) ...
by cowdogman
Wed Feb 28, 2024 12:58 pm
Forum: Personal Finance (Not Investing)
Topic: another 5500ez penalty tale - $210,000
Replies: 131
Views: 23715

Re: another 5500ez penalty tale - $210,000

WARNING! PSA to couples with businesses! I went to read up on when the $250k asset threshold was legislated and found that it was part of 120 Stat. 1057, passed in 2006, to confirm that it is a fixed amount and has never been adjusted for inflation. (It is and it hasn't.) https://www.govinfo.gov/content/pkg/STATUTE-120/pdf/STATUTE-120-Pg780.pdf#page=278 However, further down the page in the definition of a "one-participant plan," one of the conditions to be met states "(a)(2)(D)) the plan does not cover a business that is a member of an affiliated service group, a controlled group of corporations, or a group of businesses under common control;" My reading (disclaimer: IANAL) is that if two spouses are a controlled group...
by cowdogman
Wed Feb 28, 2024 10:53 am
Forum: Personal Finance (Not Investing)
Topic: another 5500ez penalty tale - $210,000
Replies: 131
Views: 23715

Re: another 5500ez penalty tale - $210,000

hvaclorax wrote: Tue Feb 27, 2024 10:38 pm Is there a statute of limitations for this problem?
If one files a 5500-EZ there is a 3-year statute of limitations for the IRS to question it (which is why some people file even if plan assets are less than $250,000).

There is no statute of limitations for a failure to file--same as for a 1040.
by cowdogman
Tue Feb 27, 2024 11:12 am
Forum: Personal Finance (Not Investing)
Topic: Tax Advice - Partial Inservice Rollover - Oh My! [Turbo Tax]
Replies: 19
Views: 1138

Re: Tax Advice - Partial Inservice Rollover - Oh My!

Should I do one 3 separate entries in TT? Pre-tax, after-tax, Roth 401k? Yes, the suggestion is you split the code G 1099-R into two so there are three 1099-Rs entered into TT that in total equal the two 1099-Rs you actually received. For 1099-R code G - - 1st split 1099-R would be for the traditional 401k rollover where you answer everything was rolled over to a TIRA. - 2nd split 2099-R would be for the after-tax 401k rollover to Roth IRA. You have to tell TT that (1) the 401k funds are after tax (box 5 entry) and (2) the rollover was to a Roth IRA. If I divide off the after-tax on 1099-R G, I assume I will be changing the Gross distribution amounts in Box 1 on TT? The Gross distribution on G was $393K = but I will change it to reflect $3...
by cowdogman
Tue Feb 27, 2024 10:54 am
Forum: Personal Finance (Not Investing)
Topic: Tax Advice - Partial Inservice Rollover - Oh My! [Turbo Tax]
Replies: 19
Views: 1138

Re: Tax Advice - Partial Inservice Rollover - Oh My!

shelterinplace wrote: Tue Feb 27, 2024 10:51 am I started by entering the 1099-R Coded G which shows the pre-tax and after-tax monies. The pre-tax went to my TIRA and the after-tax went to my Roth IRA.
See my post above.
by cowdogman
Tue Feb 27, 2024 10:49 am
Forum: Personal Finance (Not Investing)
Topic: Tax Advice - Partial Inservice Rollover - Oh My! [Turbo Tax]
Replies: 19
Views: 1138

Re: Tax Advice - Partial Inservice Rollover - Oh My!

You got two 1099's. You enter the two forms separately even though the money for both of them came from the same place. The answer to Q2 above will be "Yes" for one of them and "no" for the other one. Yes, I got 2 1099-Rs. The one Coded G shows both pre-tax and after-tax monies. The one Coded H has Roth 401k monies. Should I do one 3 separate entries in TT? Pre-tax, after-tax, Roth 401k? Thank you! You should talk to Fidelity. Based on the above it sounds like the Roth 401(k) was rolled to the Roth IRA and the Trad 401(k) (both pretax and after tax) was rolled to the Trad IRA (which is allowable notwithstanding what you said Fidelity said). If so, the tax consequence should be zero. I would check your records and also g...
by cowdogman
Tue Feb 27, 2024 10:37 am
Forum: Personal Finance (Not Investing)
Topic: Tax Advice - Partial Inservice Rollover - Oh My! [Turbo Tax]
Replies: 19
Views: 1138

Re: Tax Advice - Partial Inservice Rollover - Oh My!

As noted above, you should enter the two 1099s separately. For the Roth conversion (it's not a rollover) TT will ask what your *basis* is in the amount converted--enter the amount transferred to the Roth. The resulting tax should be zero.

For the above I'm assuming Fidelity did what they should have done--rollover the pretax amount and convert the after-tax amount.
by cowdogman
Sun Feb 25, 2024 10:26 am
Forum: Personal Finance (Not Investing)
Topic: Adjusted Basis in House--IRS Issues
Replies: 8
Views: 1052

Re: Adjusted Basis in House--IRS Issues

Suggest you review Irs Pub 523 "Selling Your Home". Some of the work you did might be considered repairs rather than improvements. For Example: Repairs done as part of larger project. "You can include repair-type work if it is done as part of an extensive remodeling or restoration job. For example, replacing broken windowpanes is a repair, but replacing the same window as part of a project of replacing all the windows in your home counts as an improvement." "Examples of improvements you CAN’T include in your basis. You can’t include: Any costs of repairs or maintenance that are necessary to keep your home in good condition but don’t add to its value or prolong its life. Examples include painting (interior or exteri...
by cowdogman
Sat Feb 24, 2024 5:04 pm
Forum: Personal Finance (Not Investing)
Topic: Adjusted Basis in House--IRS Issues
Replies: 8
Views: 1052

Adjusted Basis in House--IRS Issues

We've been in our house about 14 years. We will have a substantial gain when we sell (fingers crossed), well over the $500,000 exclusion. I'm pretty good about keeping receipts for home improvements and keeping track in Quicken of expenditures that increase basis, but I have not ever (until now) sorted through the receipts and compared them to what I have in Quicken. According to Quicken we have had about $175,000 in improvements over those 14 years, and I have been able to find receipts so far for about $170,000 of that (plus a handful of receipts that I didn't categorize as home improvements in Quicken). The large majority of the missing $5,000 of receipts relates to expenses at Home Depot and a local nursery. My questions: 1. Has anybody...
by cowdogman
Sat Feb 24, 2024 12:36 pm
Forum: Personal Finance (Not Investing)
Topic: [Using PayPal to pay bills and earn 5% on credit cards]
Replies: 603
Views: 89354

Re: [Using PayPal to pay bills and earn 5% on credit cards]

Both of my PPBPs are gone--city water bill and property tax (they were there a couple weeks ago). It was good while it lasted--and I'm surprised it lasted so long.
by cowdogman
Thu Feb 22, 2024 2:54 pm
Forum: Investing - Theory, News & General
Topic: Fund exchanges broken? - Vanguard mutual fund account
Replies: 17
Views: 1270

Re: Fund exchanges broken? - Vanguard mutual fund account

Working again. I just did a fund exchange.
by cowdogman
Thu Feb 22, 2024 11:15 am
Forum: Investing - Theory, News & General
Topic: Fund exchanges broken? - Vanguard mutual fund account
Replies: 17
Views: 1270

Trading Offline at Vanguard

[Thread merged into here --admin LadyGeek]

I went online to do a fund exchange and when I started the process I was given the message that Vanguard could not process the exchange now and to call an 800 number.

I called Vanguard Flagship and was told the system for trading is offline. I asked for an ETA but was told there isn't one right now.

Maybe related to ATT outage?
by cowdogman
Wed Feb 21, 2024 4:52 pm
Forum: Personal Finance (Not Investing)
Topic: My girlfriend wants to contribute to my mortgage. How can we be tax savvy about this?
Replies: 44
Views: 4340

Re: My girlfriend wants to contribute to my mortgage. How can we be tax savvy about this?

popoki wrote: Wed Feb 21, 2024 4:36 pm
cowdogman wrote: Wed Feb 21, 2024 4:30 pm
popoki wrote: Wed Feb 21, 2024 4:10 pm The correct legal answer is to have her sign a lease and pay you rent, which makes it clear that she doesn't have any home equity. But that's not the correct answer from a relationship standpoint.
A lease gives her the rights of a tenant, which could be a problem later.
Living there without a lease probably gives her rights as a tenant, possibly greater than if there was a lease. Anyways, with a month-to-month lease, the landlord could just raise rent 10X when things go south.
Hence my suggestion above that OP needs something in writing.
by cowdogman
Wed Feb 21, 2024 4:49 pm
Forum: Personal Finance (Not Investing)
Topic: Getting tax deduction from ACA (non-HSA) health insurance vs maxing out ACA HSA health insurance
Replies: 2
Views: 393

Re: Getting tax deduction from ACA (non-HSA) health insurance vs maxing out ACA HSA health insurance

You don't mention ACA credits. Will you be entitled to them based on income? If your wife is self employed you can receive credits and still take the deduction (less the credits). (The calculation of how to split the premiums between credits and deduction is a little tricky but you don't need to worry about that now.) I faced this same issue a few years ago. One thing you should look at is the freebies that go along with the non-HSA policy (e.g., free/low cost visits to primary care physicians). You won't get those in an HSA policy. If you are not at a high income level, the tax breaks associated with an HSA may not be worth it--altho HSA contribution will reduce your AGI and therefore increase your ACA credits. If you are relatively health...
by cowdogman
Wed Feb 21, 2024 4:30 pm
Forum: Personal Finance (Not Investing)
Topic: My girlfriend wants to contribute to my mortgage. How can we be tax savvy about this?
Replies: 44
Views: 4340

Re: My girlfriend wants to contribute to my mortgage. How can we be tax savvy about this?

popoki wrote: Wed Feb 21, 2024 4:10 pm The correct legal answer is to have her sign a lease and pay you rent, which makes it clear that she doesn't have any home equity. But that's not the correct answer from a relationship standpoint.
A lease gives her the rights of a tenant, which could be a problem later.
by cowdogman
Wed Feb 21, 2024 3:58 pm
Forum: Personal Finance (Not Investing)
Topic: My girlfriend wants to contribute to my mortgage. How can we be tax savvy about this?
Replies: 44
Views: 4340

Re: My girlfriend wants to contribute to my mortgage. How can we be tax savvy about this?

My girlfriend wants to contribute to my mortgage. How can we be tax savvy about this? It might be best to get married if you want to merge your finances. The problem is that if you break up she might try to claim part ownership of the house especially if the breakup is bitter. You might also have trouble evicting her if you breakup and she has been paying on the mortgage. This is a real problem and people have been known to be living together after a breakup and bring new boyfriends or girlfriends back to the house just to upset their ex. Short of that you should get both get your own lawyer to write of some sort of premarital agreement about how your finances will be handled if you break up if she is going to be paying part of the mortgag...
by cowdogman
Tue Feb 20, 2024 3:20 pm
Forum: Personal Finance (Not Investing)
Topic: New Form 7206 (SEHID) and TurboTax
Replies: 52
Views: 4475

Re: New Form 7206 (SEHID) and TurboTax

FYI, the latest TT update fixes the Form 7206 issue for desktop users. The e-file problem is solved apparently (I haven't tried to e-file). The Incorrect Line 1 (and footnote) problem remains. I'm having the same issue with Line 1 of 7206 in TT. I went back and read the finalized instructions from the IRS and came across this: How to figure the deduction. Generally, you can use the worksheet in the Form 1040 instructions to figure your deduction. However, if any of the following apply, you must use Form 7206. • You had more than one source of income subject to self-employment tax. • You file Form 2555. • You are using amounts paid for qualified long-term care insurance to figure the deduction. In our situation, none of these apply, so is t...
by cowdogman
Tue Feb 20, 2024 11:35 am
Forum: Personal Finance (Not Investing)
Topic: Tax Forums: Looking For Something Bogleheadish
Replies: 4
Views: 581

Re: Tax Forums: Looking For Something Bogleheadish

https://www.reddit.com/r/tax/

https://www.reddit.com/r/taxhelp/

and various other "subreddits".

For retirement account issues: https://www.irahelp.com/forums/ira-discussion-forum Very good discussions.

I subscribe to the Kiplinger Tax Letter. It's good. I just renewed, but it was borderline--not sure the benefit justified the cost.
by cowdogman
Mon Feb 19, 2024 6:55 pm
Forum: Personal Finance (Not Investing)
Topic: Warning - TurboTax Form 8283 Issue
Replies: 9
Views: 1876

Re: Warning - TurboTax Form 8283 Issue

Keep in mind that the "filing copy" generated by TT for your files is not what actually gets sent to the IRS. What the TT CSR in the Community is saying is that the complete list shows up in the data sent to the IRS even tho it doesn't show up in your printed copy.

I'm having a somewhat similar problem with Form 7206. The form has incorrect amounts in Lines 1 and 14, but the correct amount is showing up in Schedule 1 and the 1040. I can't get TT to respond on this issue--tho I suspect the response will be the same as for your issue--"it's a printing problem."

TT is a mess this year. If my problem isn't addressed I may give H&R Block a try.
by cowdogman
Fri Feb 16, 2024 6:48 pm
Forum: Personal Finance (Not Investing)
Topic: QBI- all deductible SE tax excluded or just per business?
Replies: 2
Views: 368

Re: QBI- all deductible SE tax excluded or just per business?

where she is subject to self employment tax but is an employee for income tax purposes Interesting. I didn't know that ministers (even tho employees) pay payroll taxes (SS and Medicare) as if self-employed per Pub 517. The correct answer should be that only payroll taxes paid on Schedule C net profit should be deducted from Schedule C net profit for purposes of determining QBI--because wages from the employer do not qualify as QBI and therefore payroll taxes on those wages should not reduce QBI. Finding a clear statement of the above is hard to find. But take a look at https://csbc.com/wp-content/uploads/2020/09/2021-Tax-Return-Preparation-Guide.pdf Ministers who have income from business activities (conducted other than in their capacity ...
by cowdogman
Fri Feb 16, 2024 3:24 pm
Forum: Personal Finance (Not Investing)
Topic: Contributing to both Solo 401K & Solo 401K Roth
Replies: 22
Views: 1658

Re: Contributing to both Solo 401K & Solo 401K Roth

JRO:

If you're asking whether you can violate your plan documents and get away with it, I don't know the answer to that. But if the E*Trade site is like the Vanguard site, you will not be able to deposit employer contributions to the Roth account.

One workaround for this is to, at the same time, make a pre-tax employer contribution to the trad 401(k) and do a Roth conversion in an equal amount. Your trad balance stays the same and you have the additional amount in the Roth. And the Roth conversion tax is offset by the pre-tax contribution tax savings.
by cowdogman
Fri Feb 16, 2024 3:10 pm
Forum: Personal Finance (Not Investing)
Topic: Contributing to both Solo 401K & Solo 401K Roth
Replies: 22
Views: 1658

Re: Contributing to both Solo 401K & Solo 401K Roth

I'm not asking about catch-up contributions. I just wondering if, after someone contributes (for 2023) $22,500 to roth 401k can that person make additional roth contributions on the employer side? Historically, the answer was no because employer side contributions were traditional and not roth. The new provisions in Secure Act change that so i'm wondering whether we can take advantage of the new changes or if E*TRADE's plan doesn't allow that. Ignoring catch up contributions, you're capped at $22,500 (for 2023) across all plans and across Roth and pre-tax. Huh? Can certainly contribute more than $22,500. For employee deferrals where you're under 50, you're capped at $22,500 (for 2023) across all plans and across Roth and pre-tax. For emplo...
by cowdogman
Fri Feb 16, 2024 2:52 pm
Forum: Personal Finance (Not Investing)
Topic: Contributing to both Solo 401K & Solo 401K Roth
Replies: 22
Views: 1658

Re: Contributing to both Solo 401K & Solo 401K Roth

JR0 wrote: Fri Feb 16, 2024 2:32 pm
I'm not asking about catch-up contributions. I just wondering if, after someone contributes (for 2023) $22,500 to roth 401k can that person make additional roth contributions on the employer side? Historically, the answer was no because employer side contributions were traditional and not roth. The new provisions in Secure Act change that so i'm wondering whether we can take advantage of the new changes or if E*TRADE's plan doesn't allow that.
Ignoring catch up contributions, you're capped at $22,500 (for 2023) across all plans and across Roth and pre-tax.
by cowdogman
Fri Feb 16, 2024 11:53 am
Forum: Personal Finance (Not Investing)
Topic: Contributing to both Solo 401K & Solo 401K Roth
Replies: 22
Views: 1658

Re: Contributing to both Solo 401K & Solo 401K Roth

Yes I am aware of the Secure Act 2.0 provisions, but I am not aware that any of the free Solo 401k providers have amended their plans/processes yet to allow it. A month ago, E*TRADE said “not allowed yet in 2024”. Hence my “hoping…” comment… Have you heard of any providers now allowing it for 2024 contributions? I'm curious about this issue too given the changes in Secure Act. E*Trade says it will automatically show Individual 401(k) contributions as employer contributions and Individual Roth 401(k) contributions as employee contributions in the transaction history, but it is up to the individual to track employee vs employer contributions and report based on his/her own records. Can an individual simply make the employer side contribution...
by cowdogman
Thu Feb 15, 2024 10:26 am
Forum: Personal Finance (Not Investing)
Topic: New Form 7206 (SEHID) and TurboTax
Replies: 52
Views: 4475

Re: New Form 7206 (SEHID) and TurboTax

Trillium wrote: Thu Feb 15, 2024 10:16 am FYI, the latest TT update fixes the Form 7206 issue for desktop users.
The e-file problem is solved apparently (I haven't tried to e-file). The Incorrect Line 1 (and footnote) problem remains.
by cowdogman
Wed Feb 14, 2024 4:44 pm
Forum: Personal Finance (Not Investing)
Topic: New Form 7206 (SEHID) and TurboTax
Replies: 52
Views: 4475

Re: New Form 7206 (SEHID) and TurboTax

Here's the latest on TT Community: https://ttlc.intuit.com/community/taxes ... 6/page/_25

What a mess.

I'm in no hurry and so I'll wait a couple weeks and see what is happening then.

This is all very interesting to watch.
by cowdogman
Wed Feb 14, 2024 4:30 pm
Forum: Personal Finance (Not Investing)
Topic: New Form 7206 (SEHID) and TurboTax
Replies: 52
Views: 4475

Re: New Form 7206 (SEHID) and TurboTax

H&R Block does not have form 7206 on the list of supported forms: https://www.hrblock.com/pdf/HRB-Online-Fed-Forms/deluxe.pdf You need to look at the forms for the Self-Employed version. https://www.hrblock.com/pdf/HRB-Online-Fed-Forms/self-employed.pdf We're both wrong because we're both looking at the forms in H&R Block Online. The desktop version of H&R Block already has form 7206, but Self-Employed Health Insurance will not be available until March 1, 2024. I think that means it'll fill out form 7206, but it won't put the right number on Schedule 1. Form name Windows Mac Form 1040 and Schedules 1-3: US Individual Income Tax Available Available Form 1040-SR and Schedules 1-3: US Tax Return for Seniors Available Available ......
by cowdogman
Wed Feb 14, 2024 3:38 pm
Forum: Personal Finance (Not Investing)
Topic: New Form 7206 (SEHID) and TurboTax
Replies: 52
Views: 4475

Re: New Form 7206 (SEHID) and TurboTax

talzara wrote: Mon Feb 12, 2024 8:56 pm
PapaBearTX wrote: Mon Feb 12, 2024 5:51 pm And I received my last 1099, updated my return in TurboTax only to get the Form 7206 efile error.

If posts on TT forum are correct, TT online and H&R Block can e-file, just not those of us using TT-desktop software.

Yes, this is a bit frustrating.
H&R Block does not have form 7206 on the list of supported forms: https://www.hrblock.com/pdf/HRB-Online- ... deluxe.pdf
You need to look at the forms for the Self-Employed version. https://www.hrblock.com/pdf/HRB-Online- ... ployed.pdf