Bogleheads.org

Dealing with federal disaster area declared Jan 2023.

I won't know actual losses for 6+ months. You can deduct losses from the previous year (2022) taxes immediately. If I find out I have more losses, must I amend the previous-year return, or can I just add more casualty losses to the current year when I file those (2023)?

In other words, can I add more losses as discovered to 2023 or must they all be attached to the 2022 once I have "chosen" a year?

(why: amending a return these days takes forever. I'd rather guess low in 2022 and true up in 2023 if I can... it seems unlikely they allow this but it also seems weird they let you deduct a current year thing in the prior year so I figured I'd ask!)

I only see a one year look back, and a deadline of six months after the filing deadline in the disaster year to elect to take the loss on the prior year: You must generally deduct a casualty loss in the disaster year. However, if you have a casualty loss from a federally declared disaster that occurred in an area warranting public or individual assistance (or both), you can elect to deduct that loss on your return or amended return for the tax year immediately preceding the disaster year. If your disaster is the California one that was declared January 9th, you have until October 2023 to decide if you want to amend your 2022 taxes to take it then. If it was some other disaster that started in late 2022, you have to decide by October of thi...

FIRE'd 2021, moved into the hills. 40+ year rain storm event and suffered landslides and retaining wall failures. Obviously I'd prefer not to go back to work, depending on what resources/benefits I can leverage. The county has been declared a Federal Disaster Area. Casualty losses - 2021 was a huge income year (stock, severance, selling houses with gains) - it looks like there is a 3 year look back for deducting casualty losses. Is it as simple as filing an amended return for 2021 once I know my losses? (which may take a full year. Likely in the $150-200K/range.) My marginal rate was 35% in 2021. While in 2022 and 2023 it will be 22-24%. FEMA loans - are these worth doing? I don't see any obvious information on rates, are they generally pre...

I've worked with various drainage/structural engineer/etc types. Frankly I am dubious if your premise to begin with. It will be very difficult to conclude irrigation hydrostatic loading is the cause vs. natural. Is this a monolithic concrete wall? cinder block? how tall is it? are you down hill from them? Has it actually cracked and failed? What's the soil like (clay/sand/solid rock)? In short, any structural engineer that lists "retaining walls" or similar expertise will write up a report on how to fix it, but I don't think any of them will definitively point a finger at irrigation as a root cause. In short, "inconclusive" is the most likely outcome. Likely the solution is grading and/or a french drain. Homeowner's ins...

I've worked with various drainage/structural engineer/etc types. Frankly I am dubious if your premise to begin with. It will be very difficult to conclude irrigation hydrostatic loading is the cause vs. natural. Is this a monolithic concrete wall? cinder block? how tall is it? are you down hill from them? Has it actually cracked and failed? What's the soil like (clay/sand/solid rock)? In short, any structural engineer that lists "retaining walls" or similar expertise will write up a report on how to fix it, but I don't think any of them will definitively point a finger at irrigation as a root cause. In short, "inconclusive" is the most likely outcome. Likely the solution is grading and/or a french drain. Homeowner's insu...

I walked away from $500K to $1M/year @ 35X my expenses in my late 40s. But I quit when I reached the goal, until then it was pedal to the metal because those jobs don't usually let you coast. It's a political death match every day, with everyone else wanting those big compensation packages.

No point in worrying about it now.. go hit your $10M number and then see how you feel.

I'll just point out there is risk of the "ignore 30/60/90 days then negotiate" strategy.

Many hospitals don't bother, and just send them straight to collections.

You can still settle at that point, but it will be more of a hassle and more precarious to ensure you don't end up with black marks on her credit report.

As always, treat the medical industry as the enemy at all times. They are definitely out to get you. I also agree you should cease any direct communications with them, they'll send your information along with your daughter's to the collection agencies and then they'll hound you forever too.

I'd also take a look at electricity price trends in that area.. ours are on relentless increases (50% this year, likely another 50% next year.) Propane is expensive too, but at least you're diversifying your energy sources. Tbh, that's kind of a nonsensical talking point. Electricity is and will be cheaper than propane, always and forever. Electric rates should in fact begin to level off and potentially fall as more renewables come online. Propane will never get more abundant. Edit: and I'd also agree with the heat pump recommendations. They have another advantage of passively dehumidifying your basement. Not in California. Unfortunately the utility is trying to break the backs of residential solar generators, and pay for all their new ren...

TurboTax seemed to become quite a mess after the last major tax overhaul and they never seemed to recover. It seems worse every year for me. I plan to use something else next year - if the price had remained the same, I'd probably not switch.. but the gradual decline in quality, late and incorrect forms, etc.. combined with increasing price? I'm out.

I’d stick The idea that the other job will be less stressful is frequently grass seems greener on other side situation This is also a good point that I'm considering. I have reasons to believe the new opportunity will be less stressful, but you are right that we never know, and our judgment is always clouded by recency bias. Assuming you've spoke to a therapist about your current stresses, you should have an idea if the new job will have similar issues. No one here is going to be able to figure that out. Assuming "mid 7 figures" is $5M.. that's a pretty life changing amount of money. Although mine was not one-time windfall (rather, large cliffs) - I was in a similar situation of hating my job/career/industry, but I needed those v...

I'd also take a look at electricity price trends in that area.. ours are on relentless increases (50% this year, likely another 50% next year.)

Propane is expensive too, but at least you're diversifying your energy sources.

The main risk is that something serious happens in that limbo period. From a provider point of view, you're uninsured. If you can convince them to provide services, you're financially fine getting it retroactively covered.. but that doesn't mean they have to provide the services in the first place.

But that said, I actually do find the $2-3M prices on ranch houses even more viscerally shocking. It is all really high by my standards, but on some level I just struggle with the concept that what were built as upper-working-class/lower-middle-class homes are being bid up that high. Oh well. If you have a non-portable job, you have to live somewhere that works for it. I really don't get that part either. The 2M 1500 sq ft. ranch homes in California with vinyl floors, linoleum counters, cabinets falling aparts, stoves with electric burners, lawns covered in weeds, rotting staircases outside, etc. How do people afford 2M for a house but can't even put even modest interior upgrades or appliances in it. I would kind of understand if these thi...

There's really only one major decision: OLED and "everything else." the "O" is the critical part.

"everything else" is actually LCD based with various amounts of technology to make LCD less terrible, plus confusing marketing to make you think it is like OLED.

So yes, if you have the means, OLED is the way to go.

I hate to be "that guy" - but even when logged out, facebook continues to track you. Once they have associated your facebook account with your computer-profile (ip/browser/cookies/etc.) nearly every page that has a "facebook like" button, or a "login with facebook" button continues to feed Facebook more information. It actually goes much deeper than that. There's a Facebook "pixel" you can add to your website that is invisible and when it loads it will track that user. No FB like/login etc required. The user never knows. But what it allows is say someone coming from Google to your site, FB tracks that, and then when they log into a FB property they get ads for that site (since FB knows you're already...

My IPS says "fixed income" - so yeah, I'll hold a mixture of whatever. Stable value, TIPS, Total Bond, Munis, etc.

With rates so low for so long, it hardly matters to me what I'm sitting on in my fixed income portion. I do stick rigorously to my 70/30 AA however.

At least for silicon valley and the "hot" cities (seattle/austin/denver, etc) - the only thing that is going to knock the wind out of this is a massive stock market drop, particularly in tech company values. It is trivial right now to bring home $1M+ total compensation if you're a dual income tech couple. I assume you realize this is insulting to the millions of people that work in tech and tech-adjacent roles for companies that are not FAANG and live in cities that are not San Francisco, right? It may be trivial inside that tiny bubble of the population, but its still a tiny bubble. We live in a "hot city" for tech and my wife (and most of my friends) are in tech. I know few people who make $500k+, let alone dual-incom...

At least for silicon valley and the "hot" cities (seattle/austin/denver, etc) - the only thing that is going to knock the wind out of this is a massive stock market drop, particularly in tech company values. It is trivial right now to bring home $1M+ total compensation if you're a dual income tech couple. I assume you realize this is insulting to the millions of people that work in tech and tech-adjacent roles for companies that are not FAANG and live in cities that are not San Francisco, right? It may be trivial inside that tiny bubble of the population, but its still a tiny bubble. I'm not sure how it is insulting to point out the bulk of the overbidding is being done by the tiny bubble inhabitants who make a lot of money via s...

My feeling is they are less likely to quibble over large amounts.

As long as you have an "improvement" story to go with the expense, I think you're fine. Like your tyvek wrap is a fine example: it will significantly extend the life of your capital asset, so it is an improvement.

Widening your driveway adds value to the capital asset, so it is an improvement.

et cetera. Just document everything and ensure you have logic to back it up.

The IRS doesn't really have time to chase down all this stuff, they rely on you to accurately gauge it.

Do you have any insight on how advertisers are able target me as someone who has "set their age to 18 or older" when the relevant page says that my DOB birth information is visible to "only me?" It is something as simple as "Facebook is lying?" Facebook said they wouldn't share your birthdate. They didn't say they wouldn't share your age, or choose ads based on that age. My birthdate is separated into birthday and year of birth, both displayed with a little lock symbol and the words "only me." I haven't shared my age in any other way that I know of. FB has access to everything and uses it. They literally use every avenue to access information, sell it, use it, feed ads with it. If you have any other ...

I quit the rat race when we hit 30-35X in my late 40s. But as others have alluded to.. it all comes down to that denominator.. how solid are you on your "X" - the actual multiple is almost irrelevant once you're in the 25 to 50X range.

You need a high confidence in what your actual spend will be - usually some combination of personality, historical stability, lack of variables, or a large amount of buffer in your spending plan.

Personally I have no kids, no family obligations, have had a consistent lifestyle for many years, and a substantial discretionary budget. So my "30X" is a lot more comfortable than someone who plans to get married, have kids, has elderly parents to support, and has not settled down yet.

I know it is thread drift but I literally had an inspector out today and he tagged some tangentially related work (that has been fine for 30+ years) that I now have to spend an extra $10,000 to clear approval for the actual work they were inspecting.

I strongly wanted to go without permits, but my spouse won that "compromise" - I will use my decades of marital experience to not say "I told you so" on this one.. That brings the tally for permitting to roughly $20,000 extra - for zero added value. Also it added 9 months to the project.

Just as an example of why people forgo permits.

excavate and clean and waterproof (parge) wall. (not waterproof paint) Waterproof/seal entry area where pipe penetrates wall, inside and out. Hi Sandtrap, when you say waterproof (parge) wall, what material should be used? Hydraulic cement? Just want to know for my conversation with the handyman. When I spoke to him initially, he was talking about fixing the wall with hydraulic cement, then using waterproof paint. Any suggestion on the material would be appreciated b/c the handyman is open to using other material. Also there is a black plastic thing that protrudes from the ground next to the window. (You can see it from my exterior photo) The handyman said it should be for checking drainage. So does that mean the previous owner have some s...

Jack FFR1846 wrote: ↑Sun Apr 10, 2022 9:45 am On the bright side, if I decide I want to buy a Ferrari, financially, I really can.

What we see over and over is that no one ever buys the Ferrari. They just die with a ton of money, but hey lotta charities and kids going to be left with huge fortunes, so I guess that's a plus.

afan told me in my own "should I pull the plug?" thread that he would only retire early in my situation with a minimum of 200X expenses. So that is where a lot of Bogleheads are coming from. There is basically NO amount of money that is sufficient to stop working for some people.

I'm curious about the posts claiming insurance will not cover unpermitted work. With the amount of DIY in the US, you'd think examples would be far and wide. I've read my policy exclusions in the past and there is no mention of denial of claims. Unpermitted work is a case by case basis, not a run for the hills the owner installed a ceiling fan and re tiled the kitchen and bathroom. There's just a lot of FUD on this thread, which is expected on Bogleheads. :) Especially since requirements are very regional. Amusingly, I had permits pulled for some other work, so I added a single branch circuit to the list (trivial - empty circuit breaker, conduit run to where I wanted it) - that forced me to replace EVERY outlet in my house with safety outl...

The "boat" and "disneyland" argument rings false to me. From the OP: "anticipated annual expenses" - adding in more luxuries in retirement means your planned expenses are higher, and you're back to some lower multiple.

1) $50K year * 25 = 1.25M
2) $50K year + 25K/year in boat and disneyland and round the world trips and maybe a private luxury nurse when you're old * 25 = 1.875M

It sounds like some are calling #1 "37.5X" expenses.. when it's really just 25 once you add in anticipated retirement expenses.

Personally I waited til 30 to 35X because I quit before age 50 and the ERN math implies a lower than 4% withdrawal rate is a good idea. But my budget includes a lot of discretionary spending.

Facebook is an ad company. Spam is their business model. Feature, not a bug. You are the product. Yup, it is 100% by design. They aren't paying those engineers $500K/year for nothing. They are mining data non-stop to find the best way to generate more revenue. Ugly/confusing user interfaces tend to make more money because you have to click around, visit random dead ends, etc. A/B testing will prove it out every time. I lived just fine before Facebook was invented, and I live fine without it. Yes, possibly my life would be "richer" in some ways with social media, but the tradeoffs (personal & societal) don't seem worth it to me. From a practical standpoint, make sure you unfollow everything you possibly can. No groups, no bran...

Thanks everyone, so many great comments! I looked at the house today and was told by the listing agent that the owner's friends came and did the remodeling some time in the last 7 years and are not contactable. In the "Seller's real estate information statement" it is written: "House sold as is. Remodel done without permit.--Kitchen + bathroom + A/C + hot water tank and some windows and lighting....seller never used fireplaces". It looks like they re-did pretty much everything in every room--The place looks totally immaculate, incredibly well-cared for, but I suppose we just don't know what lies beneath. A truly extensive remodel of the guts of the house, with no way to know how far we would have to go to get it up to c...

Bogleheads live in the perfect world: don't buy a house without inspection contingencies, get 5 bids from contractors on any work, never buy anything that is even vaguely iffy, never overbid, you should move away from hot markets and buy a cheap house in the outskirts of Detroit.. etc. So that is going to be 95% of the responses. The reality is buying a house in a hot market right now is AWFUL. You are unlikely to find, and succeed in buying, a mythical Bogleheads-approved house. So a bit more nuance.. unpermitted work is indeed common. It sets off property tax reassessments and drags other work into the project to upgrade to the current code. The question is how "extensive" was this work? did they move walls? did they redo substa...

Since you didn’t get it, do you mind sharing the listing? I am curious to know what 1700 sq ft house can go for $3.3M. Even in the SF Bay Area that seems insane. This is not the one about which I was talking about. But take a look at this one which is in the same neighborhood. https://www.redfin.com/CA/San-Jose/1431-Petal-Way-95129/home/1767311 At least that one is in a top notch school district. This one went for $700k over asking for a slightly above average school. $2.4M for 1,500 sq ft. Sold in six days. https://www.redfin.com/CA/Campbell/635-Louise-Ct-95008/home/1383650 This 5000 Sq ft beautifully upgraded mansion on 16000 lot in Silver Creek sold for 4.8m. https://www.redfin.com/CA/San-Jose/5107-Eastbourne-Dr-95138/home/1787543 Just ...

Look, I kind of get the ridiculous prices for some homes because of all the nimbyism and cash. It’s super low supply with tons of demand. It’s not really a speculative bubble. People are living in these homes and if you work 60 hours a week at a FAANG you don’t want to commute an hour each way on top and have the comp to pay for it. Hat I don’t get, is that it’s not a nice house on the inside. Like that house is selling for $3 million and isn’t that big. Why does it look so dumpy. Like drop a couple hundred k and upgrade the interior of you 3 million dollar home. Every time I go to California and see these 3+ million dollar homes that look dumpy on the inside, I just don’t get it. I'd guess: 1) the housing stock is all very old in built up...

Yes, you need to read the "Employee Stock Plan" document.

Some companies do, indeed, grant RSU based on a dollar amount on a schedule. You don't benefit from appreciation in this scenario. ie, your offer may be: "You will receive $25,000 in RSU every February." and you are simply given $25,000 divided by the current price in February in stock.

There was a trend toward this direction, then Covid hit and I think everything went off the rails.

Assuming you're tied to Windows for some particular reason, buy a commercial grade laptop. They are more durable and tend to have spare parts available for a long time.

A refurbished ThinkPad is usually a decent deal. I keep them for 5+ years.

What country are you in? Saying "employment contract" implies non-US. Most non-union, non-executive roles do not have an employment contract. RSU vesting, allocation, et cetera are usually governed in the US by a document titled "Employee Stock Plan" or similar wording. You should have received a copy with your new hire paperwork, or it is available on the company HR web site. If not, you should be able to ask for a copy. This is also assuming it is a public company, since those plans are required to be documented and approved by the board of directors. I have no experience with RSU at a private company. The fact you didn't receive (or discuss the details of) any RSU on new-hire implies you won't be getting very much any...

I'll just pile on for encouragement: you can do whatever you want. You have enough money and it sounds like the kids are pretty much launched.

You should be looking at this current job as just a bridge to your retirement plans. Get started on what you want to do and how you want to live in retirement. Then either continue working.. or not.

MJS wrote: ↑Tue Apr 05, 2022 11:33 pm Chickens lay for 3-4 years, but may live for 8-10. My sister named her chickens Fricasee, Stew, & Soup, and had a local who killed/plucked/butchered them.

Underrated comment.. unless you're into butchering, you've just got chicken-pets for several years and no eggs. So far I have also resisted the requests for chickens because of this.

I would stay with the job while searching for a new job. Being unemployed raises some questions among potential employers which I would prefer to avoid, in order to start out in the strongest position for your job search. But take some comfort in the hope the experience with the current employer will be ending. Also, this is a good time to be searching for a job, due to lots of openings and not enough applicants. When you get an offer, you may even be able to request a specific start date to give yourself a couple weeks off to relax. I think I could be terminated also. So I assume that means I could get unemployment income while I search? It depends on the state. My state's requirement is a little complicated: You're laid off and eligible ...

What field? Unless you're a software engineer, I would never do this. Assuming you're the sole earner, it's just far too risky. Cut back your hours, do the minimum, 100% effort toward job searching. I think I could be terminated also. So I assume that means I could get unemployment income while I search? Yes, but outside of gross negligence, terminating you will take 30 to 90 days.. so you'll have time to search. So it is usually better all around to to be fired vs. quit. It's even better to have neither occur. As far as "it will take 30 to 90 days", that's just incorrect. From a practical standpoint, it absolutely will. No company above a certain size is going to take a white collar professional and walk them out the door withou...

You know that if you're in a 'right to work state' that you can be fired without recourse (unless they've violated a law in the process) so yes, you can find yourself walked to the door with a box of your personal belongings in hand. It happens more often than people surmise - for people in positions from the top to the very bottom. The relevant question is whether the state has at will employment. If so, then the employer can fire an employee at any time, except for unlawful reasons. Whether a state is a "right to work" state concerns the question of whether an employee can be required to pay union dues if they don't want to participate in the union. There's no practical difference between at-will and right-to-work states when i...

What field? Unless you're a software engineer, I would never do this. Assuming you're the sole earner, it's just far too risky. Cut back your hours, do the minimum, 100% effort toward job searching. I think I could be terminated also. So I assume that means I could get unemployment income while I search? Yes, but outside of gross negligence, terminating you will take 30 to 90 days.. so you'll have time to search. So it is usually better all around to to be fired vs. quit. Why would it take 30-90 days. I assumed they could let me go tomorrow. Assuming this is a corporate job, companies live in total fear and paranoia of being sued. So they like to have a long paper trail before they terminate someone. Documented "performance plans"...

bigtex wrote: ↑Tue Apr 05, 2022 2:29 pm

fortunefavored wrote: ↑Tue Apr 05, 2022 2:26 pm What field? Unless you're a software engineer, I would never do this. Assuming you're the sole earner, it's just far too risky. Cut back your hours, do the minimum, 100% effort toward job searching.

I think I could be terminated also. So I assume that means I could get unemployment income while I search?

Yes, but outside of gross negligence, terminating you will take 30 to 90 days.. so you'll have time to search. So it is usually better all around to to be fired vs. quit.

YoungSisyphus wrote: ↑Tue Apr 05, 2022 2:24 pm I am considering leaving my current employer. I have ~$100k in RSUs set to vest in March 2023 and will have another ~200k sitting unvested by that time.

I am not experienced with more senior position/moves and was curious if others have negotiated a sign on bonus due to the loss of RSUs with their current employer. Wanted to see if there are some standard customs you have seen.

Usually they'll just top you up. Say your offer is $150K+$150K RSU.. they will add another $150K RSU to match your existing $300K.

What field? Unless you're a software engineer, I would never do this. Assuming you're the sole earner, it's just far too risky. Cut back your hours, do the minimum, 100% effort toward job searching.

I appreciate everyone's replies. It has given me a new perspective on what is going on in the market for this type of work. I still continue to use the command line everyday at work. Today I had to do some netstat to listen in on ports because of a new instrument install we were doing. I feel kind of silly because everyone here is talking about technologies I've never used or needed to use before and I doubt the hospital will ever get to this level. I know basic network concepts but I'm no CCNA at all and same with my python skills. I can write a basic while/for loop but that's about it. Basically the only thing that would qualify me for a sys admin role is the cert because I am not really in the field and the experience I have is all hosp...

Their Quicken download is quite useless, if that matters. It just records deposits of dollar amounts, no purchase/holdings. Bizarre.

You either have leverage to ask for more money, or you don't. Given they want to promote you, that implies they think you're a top performer with a good future.. so.. just ask for the top of the range and say "seems to be the market rate from what recruiters have said."

They will then offer whatever they can and you can decide to accept it or not, and then you can decide to look for another job, or not. I don't think inflation is a worthwhile argument, as it has little to do with what they are going to pay specific people.

As someone who walked away from a $500K+ job before 50... go for it. Your lifestyle is pretty fixed, your withdrawal rate is trivial.. you can do whatever you want. Decide on "whatever you want is" and then go do it! Thanks @fortunefavored, and everyone above too! I appreciate the sanity check. Was walking away hard? Both difficult and easy.. easy because I had enough and have enough.. difficult because it is still a LOT of future money you leave on the table.. easily at least double my total nest egg. But the marginal utility of 35X to 50X isn't all that much. If it was 200X or 300X or something.. then you're talking private jets and caviar every night, if that's your thing. At some point you're just trading days of your life fo...

If you give friends a ride home, they assume there is insurance when they get in the car. But if you don't have UMI, that is only true when you are the at-fault driver in an accident. If you don't have UMI, the friends are reasonably entitled to know that, although they would not think about it or ask. That puts the onus on your shoulders to inform them in that scenario. I also make every passenger sign a document that they maintain current and up to date medical coverage. I'm kidding, nobody does any of this. Outside of gross negligence, I find it dubious any serious recovery would happen. Particularly if you carry an umbrella policy that will defend against lawsuits. I'm not referring to the liability of the driver giving a ride, but jus...

Certainly if your goal is just to "do more linux stuff" - those certs are fine. Traditional "admin" roles are all in decline, pay is stagnating and will continue to decline (just like "corporate IT" used to be a well paid gig, and now it is mostly $15/hr outsourced companies.) LOL "Corporate IT" is still a well paid gig, and is not mostly $15/hr outsourced companies. Good luck having anything stay up for long if you're just using $15/hr people. You sound like a programmer who has no idea what system admins actually do. Without us, nothing you do matters (and vice-versa, I admit, but at least I know we're both necessary) I wish I was a programmer, I'd have made a lot more money with a lot less stress....

Also, passengers in your car should reasonably assume that their damages will be covered if injured in an accident while you are driving. If you drop uninsured motorist protection, I think you should have an ethical obligation to inform anyone getting in your car that any injuries are not covered if involved in an accident with an underinsured or uninsured motorist. I'm not sure anyone would assume or care whether you would have uninsured motorist coverage. They would probably assume, correctly or not, they could recover damages from you, regardless of whether you could recover those damages from someone else. If you give friends a ride home, they assume there is insurance when they get in the car. But if you don't have UMI, that is only t...