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So is now a good time to sell some mutual funds I've been meaning to sell? I've been meaning to dissolve and re-invest some of my non-retirement accounts and with the looming tax-increases I'm wondering if it would be cheaper do this now rather than in a few months. Figure this group would know possibly about any tax or taxes changes that may affect this type of thing.
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Nov 30, 2012 12:41
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Untagged posted:So is now a good time to sell some mutual funds I've been meaning to sell? I've been meaning to dissolve and re-invest some of my non-retirement accounts and with the looming tax-increases I'm wondering if it would be cheaper do this now rather than in a few months. Figure this group would know possibly about any tax or taxes changes that may affect this type of thing. Are you up or down? Captial gains tax most likely will rise this year. Keep in mind the wash rule - if your'e selling the funds, you can't buy somehting similar for 30 days. If you're reallocating, that shouldn't be a big deal. If you were going to sell anyway, I'd do it this year rather than wait til next.
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Nov 30, 2012 16:20
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Meho posted:Are you up or down? Captial gains tax most likely will rise this year. Keep in mind the wash rule - if your'e selling the funds, you can't buy somehting similar for 30 days. If you're reallocating, that shouldn't be a big deal. Got several $K in a bond fund with Janus that's done fairly well, so up I guess. I had a mental limit set "when it reaches this amount" sell it and move it, which would happen early next year, but if it means higher taxes to do so I'd just like to get it done sooner rather than later. I'm looking to move it to Vanguard due to associated fees, not sure if it will stay with bonds or not (does this matter in 30 days?).
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Nov 30, 2012 21:42
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Meho posted:Are you up or down? Captial gains tax most likely will rise this year. Keep in mind the wash rule - if your'e selling the funds, you can't buy somehting similar for 30 days. If you're reallocating, that shouldn't be a big deal. That wash rule is only for losses. There is no similar rule for "wash gains."
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Nov 30, 2012 22:09
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I'm a sole proprietor of a business I'd like to buy a new iMac this year so I can 179 it on this years taxes. The only problem is that the new iMacs just came out today and if I put my order in now, it's possible that I won't take delivery of it until the first week of January. Will I be able to write it off if I purchase it in December and pick it up in January?
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Dec 1, 2012 04:50
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Haggins posted:I'm a sole proprietor of a business I'd like to buy a new iMac this year so I can 179 it on this years taxes. The only problem is that the new iMacs just came out today and if I put my order in now, it's possible that I won't take delivery of it until the first week of January. Will I be able to write it off if I purchase it in December and pick it up in January? Expense it when you pay.
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Dec 1, 2012 05:42
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furushotakeru posted:Expense it when you pay. Sounds good to me, thanks!
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Dec 2, 2012 22:15
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I'm looking for an accountant locally, as my situation has become excessively complicated, but I wanted to get some general advice from you guys too. My main job is salary at $125k+$20k-ish in bonus. During the late summer I started doing some 1099 work, received about $1400 from that and did not make any estimated quarterly payments on that amount. I didn't stop doing that work, but I moved to being a W4 employee. From that second job I earn about $50/hr and I work about 10 hours a week. So my questions are: Am I gonna get hosed by the IRS on that $1400 that I didn't make a tax payment on? Since that $1400 is on top of around $150k in salaried earnings would it be taxed at my marginal tax rate for that bracket or some other self-employement rate? And lastly, should I request to move back to 1099 from that second job? I feel like having a second W4 job on top of such a high paying one is going to cause me problems, and if I'm going to earn 1099 income regularly I'll set up a process to save and remit the estimated payments.
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Dec 3, 2012 16:34
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Jealous Cow posted:So my questions are: You aren't going to be hosed. You're not going to be subject to penalty due to only a $1400 1099 payment, unless you're under-withholding on your W-2 job. The $1400 payment will be subject to self employment tax (13.3%) on top of whatever your marginal rate is. A portion of this self employment tax will be deductible. Jealous Cow posted:And lastly, should I request to move back to 1099 from that second job? I feel like having a second W4 job on top of such a high paying one is going to cause me problems, and if I'm going to earn 1099 income regularly I'll set up a process to save and remit the estimated payments. No, you want to stay on a W-2. It's not going to "cause [you] problems". Being a W-2 employee is the far more advantageous position.
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Dec 3, 2012 19:43
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furushotakeru posted:Expense it when you pay. If he pays in December with a credit card, he will have a difference in when he was charged and the year he placed it in service. I hate to disagree, but it would seem to me his depreciation wouldn't start until 2013.
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Dec 3, 2012 19:48
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Quick question on capitalized interest on a student loan. Finally starting to repay these after a long time in grad school.
Thanks!
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Dec 8, 2012 23:13
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Dik Hz posted:Quick question on capitalized interest on a student loan. Finally starting to repay these after a long time in grad school. 1) yes 2) Not sure 3) probably, but they don't technically have to unless you pay them more than $600 in a year. I've seen them issued to repot a few dollars of interest all the time though.
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Dec 9, 2012 01:26
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furushotakeru posted:1) yes Be careful on the tax document, I've seen them issued on what looks to be a general letter and it's buried in the print.
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Dec 10, 2012 19:03
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Thanks guys!
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Dec 12, 2012 01:02
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I posted earlier in the thread wondering whether I could deduct a laptop I'd bought for school and was told I couldn't. However I have 2 online jobs that I primarily use the laptop for that I found in the online money making thread. I was wondering if that was a business expense I could have. I remember not putting anything on the turbotax forms last year about business expenses because I frankly didn't have any, but I was wondering if I could this year since I've been using it about 35 hours a week to do work related activities.
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Dec 13, 2012 22:38
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Ramadu posted:I posted earlier in the thread wondering whether I could deduct a laptop I'd bought for school and was told I couldn't. However I have 2 online jobs that I primarily use the laptop for that I found in the online money making thread. I was wondering if that was a business expense I could have. I remember not putting anything on the turbotax forms last year about business expenses because I frankly didn't have any, but I was wondering if I could this year since I've been using it about 35 hours a week to do work related activities. You could, to the extent that the laptop is used for work, but it probably won't end up affecting your tax return unless you have other expenses to go with it, along with other Schedule A deductions so that itemizing is actually worth it. I would probably argue that it would count as an education expense, but those deductions have caps that you might be able reach with just what's on your 1098-T.
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Dec 14, 2012 00:00
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Epi Lepi posted:You could, to the extent that the laptop is used for work, but it probably won't end up affecting your tax return unless you have other expenses to go with it, along with other Schedule A deductions so that itemizing is actually worth it. A lot of this post is wrong. If it were a business expense, it would go on Schedule C, not Schedule A, so the standard deduction threshold isn't relevant. And the only deductible education expenses are tuition and fees that are a prerequisite to enrollment--you can't deduct computers, textbooks, etc.
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Dec 14, 2012 06:54
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scribe jones posted:A lot of this post is wrong. If it were a business expense, it would go on Schedule C, not Schedule A, so the standard deduction threshold isn't relevant. And the only deductible education expenses are tuition and fees that are a prerequisite to enrollment--you can't deduct computers, textbooks, etc. No. Unreimbursed job related expenses go on Schedule A. You would not fill out Schedule C unless you had self employed income and I'm assuming he's a W-2 employee for his online jobs. The American Opportunity Credit allows for related expenditures that aren't included in your tuition as shown on 1098-T. I'm pretty sure I've been able to successfully argue with the IRS for those types of expenses on clients who have taken one of the other credits but I may be misremembering. EDIT: I've been working at a small tax practice for two years now after getting my BS, and I follow this thread to help educate myself on a lot of the issues that get brought up. I'm not confident enough to answer a lot of the questions I've seen but these are two issues that I see a lot in my responsibilities at the office I work at. Epi Lepi fucked around with this message at 07:29 on Dec 14, 2012 |
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Dec 14, 2012 07:16
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Epi Lepi posted:No. Unreimbursed job related expenses go on Schedule A. You would not fill out Schedule C unless you had self employed income and I'm assuming he's a W-2 employee for his online jobs. "Online moneymaking thread" = 1099-MISC
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Dec 14, 2012 07:27
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scribe jones posted:"Online moneymaking thread" = 1099-MISC Ah, okay then, I don't follow that thread.
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Dec 14, 2012 07:36
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Epi Lepi posted:Ah, okay then, I don't follow that thread. It's cool, also you were right about the AOC--we don't do a ton of those returns so I forgot that it was different from the HOPE credit etc.
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Dec 14, 2012 07:50
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Up to what point can congress change the tax rates for 2013? If they don't decide something until after the new year, is 2013 already set, or can the change it anytime?
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Dec 14, 2012 17:23
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Xenoborg posted:Up to what point can congress change the tax rates for 2013? If they don't decide something until after the new year, is 2013 already set, or can the change it anytime? Congress has the authority to make tax law changes retroactive.
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Dec 14, 2012 17:58
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AbbiTheDog posted:Congress has the authority to make tax law changes retroactive. So could they even change 2012's taxes still?
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Dec 14, 2012 18:36
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Xenoborg posted:So could they even change 2012's taxes still? They can change them whenever they feel like it.
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Dec 14, 2012 18:55
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AbbiTheDog posted:They can change them whenever they feel like it. Probably can't change them after April, though? "Everyone who paid taxes last year, we want another 100 bucks"?
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Dec 14, 2012 19:11
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silvergoose posted:Probably can't change them after April, though? "Everyone who paid taxes last year, we want another 100 bucks"? I bet they can if they're looking to be drawn and quartered by colonists bearing pitchforks.
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Dec 14, 2012 19:17
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Xenoborg posted:So could they even change 2012's taxes still? On December 17, 2010 Congress passed a bill to change the estate tax for 2010, retroactive to January 1. They did allow taxpayers to elect to use the rules that had been in effect up until that point, though.
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Dec 14, 2012 19:36
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Xenoborg posted:So could they even change 2012's taxes still? Some clarification - aside from the alternative minimum tax (AMT), there's not much going to change in 2012. 2013 is a trainwreck.
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Dec 14, 2012 21:00
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sapmagic fucked around with this message at 20:06 on Feb 9, 2022 |
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Dec 15, 2012 07:55
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Whats this? 401k, SS, and Medicare should all be separate line items on your paycheck, and have no interaction with each other. SS and medicare taxes are based only on what you actual earned income is not what your taxable income is. You pay the same amount for them no matter what you do with your 401k.
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Dec 15, 2012 08:05
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sapmagic fucked around with this message at 20:06 on Feb 9, 2022 |
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Dec 15, 2012 08:28
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sapmagic posted:Er, my understanding is that you have to pay SS/Medicare taxes on the employee deferral contribution to your 401(k). So if I choose to defer $17,000 for 2012, then roughly* $960.50 of that gets withheld for SS/Medicare, and only $16039.50 makes it into my 401(k) account. You have to pay SS and Medicare taxes on all your income regardless of how much you put into 401k or any other federal tax advantaged account, its just a flat percentage of your total income (there is a break on SS at high incomes). Either way, it gets taken out of your paycheck before anything else. The amount on the line for 401k should be exactly what goes into your 401k account, are these not matching up? Here is an example paystub, does your add things up differently? http://www.adp.com/mypaycheck/04-1903-085-Paystatement.pdf
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Dec 15, 2012 17:51
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I'm getting laid off on January 2 and the severance package leaves something to be desired (4 weeks pay, unused vacation, 2013 restricted stock vesting, 2012 bonus). I'd like to stretch that as far as I can so I want to have no income taxes withheld. I figure I'll take the maximum dollars in pocket for the severance and deal with the tax consequences when I find a new gig or April 2014 whichever comes first. What do I need to put on a new W4 to make this happen?
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Dec 15, 2012 21:39
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Due to some job related woes I was unemployeed most of this year, and doing some quick estimating I don't believe I've made more then 9k this year total. I have a good, stable job now but I got it in August so my overall earnings in 2012 are pretty poo poo. I have a federal direct consolidation loan that was opened in May, 2010 that has been on forbearance since march of this year, it currently has almost 800 dollars in accrued interest on it that I am able to pay off basically right now, and which I will have to make sure is entirely paid off by the end of February else it will get capitalized and added to the principal of my loan. Supposing I keep this job all next year (which I plan to, I like this job) I'll be pulling in ~25k/year. How is it going to affect my taxes if I pay that interest off before the year ends vs paying that interest off in 2013, when I'll be making more money total. Will it even make a difference in my refund this year vs next year overall or am I worrying about nothing with these student loan interest deductions? Oh if it matters I'm single, have no dependents, etc. 100 HOGS AGREE fucked around with this message at 21:54 on Dec 15, 2012 |
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Dec 15, 2012 21:52
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100 HOGS AGREE posted:Supposing I keep this job all next year (which I plan to, I like this job) I'll be pulling in ~25k/year. How is it going to affect my taxes if I pay that interest off before the year ends vs paying that interest off in 2013, when I'll be making more money total. Will it even make a difference in my refund this year vs next year overall or am I worrying about nothing with these student loan interest deductions? Checking CCH, they are saying that the 2012 standard deduction is $5,950 and the personal exemption is $3,800, which totals $9,750, so if you only have $9,000 in AGI (salaries, unemployment, interest, etc) and you can defer that student loan interest into next year, it's probably for the best to do so since the student loan interest deduction is an above-the-line ('for AGI') deduction (and not a refundable credit) and you wouldn't get any shielding value from doing so this year as the standard deduction and personal exemption would eliminate any liability on their own, based on what you've stated above. If you've had some federal withholdings from your employer (which I imagine is the case since I'm assuming it's a employee job with a W-2 and not a 1099 contractor job), it would appear you'd get them refunded based on your fact pattern. ch3cooh posted:I'm getting laid off on January 2 and the severance package leaves something to be desired (4 weeks pay, unused vacation, 2013 restricted stock vesting, 2012 bonus). I'd like to stretch that as far as I can so I want to have no income taxes withheld. I figure I'll take the maximum dollars in pocket for the severance and deal with the tax consequences when I find a new gig or April 2014 whichever comes first. What do I need to put on a new W4 to make this happen? Well, the 4 weeks severance and vacation pay are going to be paid out when you are officially terminated (or at some point thereafter), which means you'll have to recognize that income in 2013. The bonus I'm assuming will get paid out similarly. And I'm assuming they are buying back your restricted stock at some price (such as $1/share)? Did you have an 83(b) election on the shares? Edit: Also, if you fail to have proper withholdings you'll be subject to an underpayment of estimated tax penalty unless you meet the conditions listed here. Horseshoe theory fucked around with this message at 22:47 on Dec 15, 2012 |
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Dec 15, 2012 22:36
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ThirdPartyView posted:Checking CCH, they are saying that the 2012 standard deduction is $5,950 and the personal exemption is $3,800, which totals $9,750, so if you only have $9,000 in AGI (salaries, unemployment, interest, etc) and you can defer that student loan interest into next year, it's probably for the best to do so since the student loan interest deduction is an above-the-line ('for AGI') deduction (and not a refundable credit) and you wouldn't get any shielding value from doing so this year as the standard deduction and personal exemption would eliminate any liability on their own, based on what you've stated above. If you've had some federal withholdings from your employer (which I imagine is the case since I'm assuming it's a employee job with a W-2 and not a 1099 contractor job), it would appear you'd get them refunded based on your fact pattern.
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Dec 15, 2012 22:50
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ThirdPartyView posted:Well, the 4 weeks severance and vacation pay are going to be paid out when you are officially terminated (or at some point thereafter), which means you'll have to recognize that income in 2013. The bonus I'm assuming will get paid out similarly. And I'm assuming they are buying back your restricted stock at some price (such as $1/share)? Did you have an 83(b) election on the shares? That was my plan was to claim the income on my 2013 return. The 4 weeks pay, unused vacation, and stock vesting (at $12.50/share) all get paid within a week of January 2. The bonus will be paid at some point in the future at an amount to be determined at some point in the future (needless to say I am loving pissed about this). So not knowing how long that pay in early January needs to last I wanted to not have any income taxes withheld (obviously SS and Medicare are different). Then if I got a new job in March or April withhold extra to cover my balance or pay the balance I had on my 2013 return (15 months later). But I guess since I don't meet the requirements for claiming exempt I'm hosed. Also, the shares aren't technically shares anymore. When they were granted to me in November 2011 the company was public, then in October of this year the company went private and the shares converted to Rights to Receive at $12.50/share.
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Dec 15, 2012 23:09
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So I'm self-employed, and I'm due for a new car. I'm familiar with the per mileage write-off. Is there another way to write off a new vehicle? I anticipate making approximately the same amount of money next year as this year, but I also anticipate more write-offs next year. Is there a way to write off a vehicle as much as possible for this year, if I buy before 12/31? (I'm scheduling a meeting with my accountant this week. Just looking for additional ideas/input.)
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Dec 16, 2012 07:58
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Sch. C/ Section 179 question: I have a full-time job (W-2) and started a part-time job a couple months ago doing property maintenance (1099'ed by two landlords). The part-time job sometimes requires traveling long distances and I'm thinking of buying a new car before the end of the year for this work. The car would be used mostly for business use, maybe 75/25 business to personal; it would not be used for my W-2 job as I ride a bike to that one. Can I use the Section 179 deduction for this car? If so- and I understand that there are restrictions on the amount you can deduct with 179- I would show a loss on my Sch. C, which I believe I could use to reduce my taxable W-2 income. Will this raise any red flags with the IRS? Thanks for any feedback on this. ETA: I just saw the previous post. Maybe our situations are related?
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Dec 16, 2012 08:16
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