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Peyote Panda posted:The bright side to that as a taxpayer is that if you paid the full amount due by the original due date you shouldn't have any penalties for the late filing because those are calculated as a percentage of any tax liability that was still unpaid after the original due date. So, this gets even worse! I dug back through my emails and I found that I got an automated response from the preparers software with a form 9325 showing that my return 2022 return was electronically accepted on 4/18/2023. I logged on to my IRS account and I don't see any balance. I emailed all this info to my tax preparer and he basically said that he did everything right and that this is an IRS problem and to go gently caress yourself. I tried calling the 800-829-1040 number on the transcript letter to try and talk to a human but I after going through five layers of phone tree it hangs up on me due to high call volume. What the gently caress am I supposed to do here? Is there another number to call?
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Apr 23, 2024 19:32
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Ne Cede Malis posted:So, this gets even worse! I dug back through my emails and I found that I got an automated response from the preparers software with a form 9325 showing that my return 2022 return was electronically accepted on 4/18/2023. Just for clarity -- was the 9325 for the extension or for the return itself? Box 2 would be checked for the return, but box 6 would be checked for the extension.
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Apr 23, 2024 21:07
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That sounds frustrating. Maybe it is on the IRS side, not your preparer?Ne Cede Malis posted:We're trying to buy a house this year and I assume not having 2022 filed will gently caress up trying to get a mortgage approved? If this is the only thing that could get hung up, you might be ok. You've paid your taxes, you have the returns, right? Does the bank even need the IRS to be fully caught up? Hopefully the IRS backlog is common enough that banks don't hold up loans for it.
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Apr 23, 2024 21:14
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Ne Cede Malis posted:I tried calling the 800-829-1040 number on the transcript letter to try and talk to a human but I after going through five layers of phone tree it hangs up on me due to high call volume. What the gently caress am I supposed to do here? Is there another number to call? 1) The phone lines are open 7am to 7pm in your time zone (as long as you are in the continental US) Monday through Friday. Calling at the very beginning or toward the end of that time range is usually the best way to get through. 2) Call the IRS appointment line at 844-545-5640. Let them know you want an appointment, they'll ask some questions to verify your identity (basics like your Social Security number, name, address). They might also ask some additional questions from one of your tax returns for ID purposes. It doesn't have to be for the same year as the issue you're caling about so feel free to use your 2023 info since that may be easier to remember. Have the return info with you when you call if possible (this goes for option #1 as well). The assistor setting the appointment is supposed to research your account as part of the process and might be able to provide some info/help during the call in addition to setting up an appointment. These are not mutually exclusive. You can set up an appointment and still try to call the standard toll-free line when you have the chance.
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Apr 23, 2024 22:11
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Missing Donut posted:Just for clarity -- was the 9325 for the extension or for the return itself? Box 2 would be checked for the return, but box 6 would be checked for the extension. Boxes 1 and 2 are checked. Epitope posted:That sounds frustrating. Maybe it is on the IRS side, not your preparer? Everything is paid and I have the returns but I'm not going to chance any bullshit blowing up a deal. This process is stressful enough. Peyote Panda posted:These are not mutually exclusive. You can set up an appointment and still try to call the standard toll-free line when you have the chance. I guess I'll try this, thanks.
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Apr 23, 2024 22:17
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Going through a home purchase and trying to figure out the best use of funding a downpayment. Can someone weigh in? First time buyers in California. To pay the downpayment, I have a combination of options: 1) Roth 401k contributions 2) Stock or similar brokerage assets (plus some amount of cash) I can pay the downpayment entirety with only brokerage, but not if my brokerage withholds cap gains tax from the transaction (I don't know if I'm allowed to not withhold taxes though). However, throughout the year I'm receiving other tranches of stock (vested RSUs) that would cover a potential non-withholding bill from the original transaction, so I have the ability to pay before year-end or during my tax filing next April (or I could cash out 401k at worst). Alternatively, I have Roth 401k funds, but I don't know if there's some penalty or benefit to using those to purchase a first and primary house. Is there a tax-related reason benefit to picking one of these over the other? Also, I assume I should get a CPA in the coming months to manage house-related purchases and expenses, or is nothing here particularly wild to do myself? Or, if goons don't know the answer to the above, which professional should I call for advice (CPA, financial planner, etc)?
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Apr 27, 2024 15:41
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You owe those taxes no matter what and your rsu's aren't guaranteed. Don't spend money that isn't yours. You can choose to reduce the down payment and pay off the principal later, but you can't undo the tax burden. I wouldn't touch your retirement money.
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Apr 27, 2024 19:44
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H110Hawk posted:You owe those taxes no matter what and your rsu's aren't guaranteed. Don't spend money that isn't yours. You can choose to reduce the down payment and pay off the principal later, but you can't undo the tax burden. I guess my question was, if there was any tax advantage for using money from a specific asset class for purposes of buying a first home. I seem to remember there being some types of 401k withdrawals that you could use without penalty. Didn't know if there was a similar tax thing I should consider. Also, I'm not sure if anything in general would be tax write-offs in the future since all of this money goes toward a first and primary home purchase and related expenses. These were my options: Cash out brokerage and -- 1) Withhold taxes and pay the remaining downpayment balance from a bit of the Roth 401k 2) Don't withhold taxes and pay the entire downpayment, then use cash from RSUs later in the year to pay the owed taxes (or I suppose pay with the 401k, like in option 1). Though I don't know if I would need to make a mid-year payment or something to prevent a penalty.
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Apr 28, 2024 17:05
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You missed a third option - don't buy a house you can't afford the down payment on.
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Apr 28, 2024 17:41
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PRADA SLUT posted:I guess my question was, if there was any tax advantage for using money from a specific asset class for purposes of buying a first home. I seem to remember there being some types of 401k withdrawals that you could use without penalty. Didn't know if there was a similar tax thing I should consider. Also, I'm not sure if anything in general would be tax write-offs in the future since all of this money goes toward a first and primary home purchase and related expenses. There are some for traditional 401k iirc but they aren't worth it. Any other "first time home buying benefits" tend to be income limited or a thing of last resort (fha is sadly in this category because of the bullshit pmi change). Given your discussion of taxable brokerages and rsu's I'm going to go out on a limb and presume you make more than a couple of times the FPL, set at ~15k + $5k per addional person in your household. What % down are you looking at with just your post tax brokerage sales?
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Apr 28, 2024 17:51
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You're all focusing on the wrong thing. I've never seen a brokerage account withhold taxes so I have no clue where OP is getting the idea that that is a thing.
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Apr 28, 2024 19:53
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Epi Lepi posted:You're all focusing on the wrong thing. I've never seen a brokerage account withhold taxes so I have no clue where OP is getting the idea that that is a thing. RSU restriction releases (aka vesting) have a mandatory withholding % set, like 20% for the first million bucks or something. I imagine this is what they're referring to and presuming it's the same. Based on their proposed course of action I think it prudent to remind them they owe those taxes no matter what and shouldn't spend money that isn't theirs.
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Apr 28, 2024 20:21
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If you get RSU and hold on to them for a year and a day do you pay long term capital gains tax or is it still just considered regular income
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Apr 28, 2024 20:29
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Hadlock posted:If you get RSU and hold on to them for a year and a day do you pay long term capital gains tax or is it still just considered regular income The value at vest is always considered income and then it functions like normal where the vest price is your basis.
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Apr 28, 2024 20:35
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H110Hawk posted:There are some for traditional 401k iirc but they aren't worth it. Any other "first time home buying benefits" tend to be income limited or a thing of last resort (fha is sadly in this category because of the bullshit pmi change). Given your discussion of taxable brokerages and rsu's I'm going to go out on a limb and presume you make more than a couple of times the FPL, set at ~15k + $5k per addional person in your household. I don’t anticipate qualifying for anything income-driven. Inclusive of all buying costs (e.g, closing, inspection): With non-withheld brokerage balance, 10%. Probably 8% when withheld. +Cash, 10%. +401k as well, 8%. +RSUs vesting the month after closing: 7%. A month too late but they will be available as cash if needed for something. So I could make 20% work with only cash and brokerage but it would be basically the entirety of my cash balances and I’d have no extra buffer which I don’t prefer. I have another stock vesting coming up the month after closing so I doubt there would be an issue in case of emergency, but it’s still harder to work with investments over just cash if needed.
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Apr 28, 2024 20:37
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I would do 10-12% down and if those rsu's vest pay it to the principle later. But don't buy a home you can't afford to ride that mortgage on regardless. (I didn't think you were re: income, just letting you know.)
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Apr 28, 2024 21:08
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Would it be weird to put down 10% and then on the first payment, put down the next 10% with the RSUs and then file to remove PMI? e: this would maintain (generally most of the) cash balance and just use the brokerage+RSU PRADA SLUT fucked around with this message at 21:37 on Apr 28, 2024 |
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Apr 28, 2024 21:28
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PRADA SLUT posted:Would it be weird to put down 10% and then on the first payment, put down the next 10% with the RSUs and then file to remove PMI? Nope. You might not even need pmi to begin with. Just check the interest rates and such aren't moving around due to it.
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Apr 28, 2024 21:36
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H110Hawk posted:RSU restriction releases (aka vesting) have a mandatory withholding % set, like 20% for the first million bucks or something. I imagine this is what they're referring to and presuming it's the same. That's a different transaction from actually selling shares in the brokerage account to get cash money for the downpayment. I was assuming they already have shares that in that brokerage account that can be sold.
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Apr 29, 2024 03:49
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Epi Lepi posted:That's a different transaction from actually selling shares in the brokerage account to get cash money for the downpayment. I was assuming they already have shares that in that brokerage account that can be sold. I agree with you. I also think that it's an easy enough thing to conflate if you haven't sold a bunch of shares before, just accumulated. Or always done cashless option sales. (Or they are bad enough at their taxes they managed to get mandatory backup withholding...)
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Apr 29, 2024 04:16
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I have a hopefully simple question and just need a sanity check before I take it to some tax professionals. There are no gotchas in the lifetime gift tax exemption are there? If you are under the $13M per spouse + $18k per year, there should be no assed tax? Filing date would be 2024. Gift would be within family, same (brother) or 1 generation below (niece) so skip tax should not apply. All US citizens. Texas, so only title transfer taxes that I am aware of for the state. Also giving a friendly reminder to never mix family and money.
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May 2, 2024 00:35
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The junk collector posted:There are no gotchas in the lifetime gift tax exemption are there? Correct.
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May 2, 2024 00:51
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There shouldn't be any gotchas from a federal perspective in that situation as long as it's a completed gift. A few things to keep in mind are that (1) if you get past the annual exemption amount, that will eat into your estate tax exemption, (2) the annual exemption is per donee and each spouse gets their own (so you and your spouse could each have given your brother and niece each $17k in 2023, for total gifts of $68k if I'm doing my math right), (3) if you're filing in 2024, presumably the gifts were made last year, so the annual exemption for last year would apply, and (4) if you gave property I think there's appraisal requirements for the value of the gift? I've only dealt with that tangentially for the most part so you'll probably want to hit up someone who can give you real advice with all the facts and circumstances.
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May 2, 2024 00:58
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H110Hawk posted:Correct. Thank you. I've been assigned to solve the family drama because the involved parties are now to upset to rationally discuss things and it is very stressful so I'm not 100% trusting myself to read tax code.
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May 2, 2024 00:59
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Unless your family is talking about ever coming close to the lifetime limit its not something to even care about. This is all hundred millionaire politicians trying to scare people into voting for tax cuts for those politicians and their friends.
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May 2, 2024 01:19
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H110Hawk posted:Unless your family is talking about ever coming close to the lifetime limit its not something to even care about. This is all hundred millionaire politicians trying to scare people into voting for tax cuts for those politicians and their friends. Oh absolutely.
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May 2, 2024 04:47
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This is all true, but just bear in mind that historically, the exemption was usually closer to 1M than 13M, and future changes to the tax laws could go back in that direction. This isn't really a concern for present planning, as these types of changes are never retroactive, but if we are talking very long term estate planning, could be relevant. If there are significant assets in play, professional estate planning can assuage a lot of tax and probate headaches down the road, even if the estate is less than 13M.
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May 2, 2024 17:34
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