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Krispy Wafer posted:I think it means your recipient doesn't get taxed on the gift. Recipients aren’t taxed on gifts of any size. They don’t even have to report it. Above $15K per recipient per giver (two parents means $30K/year, it even has a spot on the form for splitting gift assignment) per year, it starts to use up the $11M lifetime exemption per giver (for US citizens). If you’re a US citizen legitimately worried about gift tax, you aren’t worried about paying for your kids’ tuition.
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Apr 20, 2019 00:30
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LOL if you don’t have an Enrique to gift your tax for you.
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Apr 20, 2019 00:31
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ok
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Apr 20, 2019 00:40
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Thanatosian posted:What do you want to bet the reason they thought they were supposed to file as "royalties" was because their parents told them to? Haha what? How does a tax preparer gently caress up this badly? I get a small amount of royalties from Amazon and even goddamn TurboTax always does them as schedule C self employment.
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Apr 20, 2019 00:45
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Krispy Wafer posted:529 plans are cool and good.
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Apr 20, 2019 06:43
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529 plans are great if you’ve already decided you’re going to pay for at least part of your kids college tuition. It’s strictly better for this purpose than saving in a taxable account if you go with a plan that has access to the same funds you’d be investing in, since it’s essentially a Roth IRA except it can only be used for one purpose. If you go with a good plan (New York, Nevada, Utah), you’re going to get access to Vanguard institutional funds with super low ERs, so saying they underperform the market makes no sense. Yes, there’s an additional administrative ER tacked on, but with the aforementioned plans, it’s somewhere between 0-0.2 depending on if you’re a resident of the state the plan is administered by. That’s still better than a taxable account where you’d be dealing with tax drag on growth and capital gains on the back end. The main problem is that if junior decides he’s not going to college, then you get hit with ordinary income tax + 10% on the gains if you try to withdraw for anything else. If the kid gets scholarships, then you can withdraw an equivalent amount penalty free, but still get stuck with ordinary rates on the gains. But, it’s trivial to change the beneficiary of the plan to another family member, so you could use extra funds to take classes for yourself, or pay for private school or college for your grandkids or whatever, so there are options. But definitely agree that retirement savings should be prioritized first, since you don’t really want to be withdrawing from a 529 for other purposes, and not making your kids support you in old age is a way better gift than avoiding student debt.
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Apr 20, 2019 10:42
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It stared off as run-of-the-mill BWM, but the whole 'oh yeah I also owe an order of magnutude more on this foreclosure I walked away from' made me  irl.https://old.reddit.com/r/PersonalFinanceCanada/comments/bfejon/cra_full_financial_disclosure_need_help_please/ posted:Hello there, need help regarding CRA back tax owed, I moved to the US back in 2010 to finish my university degree. Back then, I created a Life Long Learning account under the family surname as recommended by my banker so I and my children can use the money for education. CRA disagreed and asked me to pay the money back since I ceased to become a resident of Canada or pay the tax since CRA will consider it as income. The saga went on while I was in the US and CRA kept on sending letters and calling. Now, I am back in Canada and filed my tax for 2018. I received a phone call from CRA collection agent and she told me that my file was transferred to her and I need to pay the balance of $14500 (original amount of $9000 + interest). She also told me that my tax return of the $1500 was taken back by CRA that is why the balance is less from original $16000. I asked for options to pay and she said that I need to pay it back over 6 months, I told her that is almost $2500 a month and I might not have that much cash. She said any less, I have to file Full Financial Disclosure showing all my assets, bank accounts for the last 6 months and my income and expenses. She said I have till end of April to send it back to her. I asked all my bank accounts including US she said "yes". I am worried now since I found out when looking in my CRA online account that there is also MIF Deficiency Judgments (Canada Mortgage and Housing Corporation) for $145600. I believe this happened back in 2010 when CIBC foreclosed on my BC house and got a court order to sell my house and asked CMHC for the balance. Foolish enough at the time, I thought CMHC will cover that since it is mortgage insurance. Noting that through out the years we received a letter for me and my wife to contact CMHC back in 2016 or 2017, never a claim. Here is my questions and thanks a lot if you read that far:
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Apr 21, 2019 02:04
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Guest2553 posted:It stared off as run-of-the-mill BWM, but the whole 'oh yeah I also owe an order of magnutude more on this foreclosure I walked away from' made me That dude needs a lawyer tout de suite.
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Apr 21, 2019 02:33
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Lol the dude thought he could just walk away from an underwater property like he was in the US or something.
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Apr 21, 2019 02:56
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US: Look how BWM we are. Canada: Hold my beer.
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Apr 21, 2019 03:00
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Guest2553 posted:It stared off as run-of-the-mill BWM, but the whole 'oh yeah I also owe an order of magnutude more on this foreclosure I walked away from' made me This is the face of the Vancouver housing crisis. Look at me I'm just getting foreclosed on my house and pulling tax shenanigans so I can live the lifestyle I deserve. What do you mean there should be consequences?
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Apr 21, 2019 04:54
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I'm fairly sure that in Canada, like in the US, you can walk away from a foreclosure if you declare bankruptcy. (And probably never get a loan again.) The here is how the gently caress did he walk away from a loan for nearly nine years without declaring bankruptcy and think everything would just be fine.
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Apr 21, 2019 04:58
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Something about that story reminds me of the old, possibly apocryphal tale of the drunk driver who raced the cops to his house and was upset when they arrested him at home because he made it in to the garage and closed the door.
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Apr 21, 2019 15:23
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Well I mean, the door was closed
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Apr 21, 2019 19:03
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Ixian posted:Something about that story reminds me of the old, possibly apocryphal tale of the drunk driver who raced the cops to his house and was upset when they arrested him at home because he made it in to the garage and closed the door. Well it works in Grand Theft Auto
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Apr 22, 2019 11:16
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Lead out in cuffs posted:I'm fairly sure that in Canada, like in the US, you can walk away from a foreclosure if you declare bankruptcy. (And probably never get a loan again.) In Alberta you can jingle-mail too.
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Apr 22, 2019 13:21
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Subjunctive posted:In Alberta you can jingle-mail too. And in Nova Scotia you can steal gas to make some extra money. Might make you sick though.
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Apr 22, 2019 13:25
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Chu020 posted:529 plans are great if you’ve already decided you’re going to pay for at least part of your kids college tuition. It’s strictly better for this purpose than saving in a taxable account if you go with a plan that has access to the same funds you’d be investing in, since it’s essentially a Roth IRA except it can only be used for one purpose. If you go with a good plan (New York, Nevada, Utah), you’re going to get access to Vanguard institutional funds with super low ERs, so saying they underperform the market makes no sense. Yes, there’s an additional administrative ER tacked on, but with the aforementioned plans, it’s somewhere between 0-0.2 depending on if you’re a resident of the state the plan is administered by. That’s still better than a taxable account where you’d be dealing with tax drag on growth and capital gains on the back end.
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Apr 22, 2019 15:54
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gvibes posted:Also, contributions are deductible against state income in some states (Illinois!). Keeping in mind that if you take non-qualified distributions, the state's going to claw back the tax deductions you took on the contributions. So you're going to have a pretty hefty tax bill to pay if your kids don't go to college. Further evidence to support the "fund your retirement first" point of view. 529s are NOT a good place to stash money unless it actually is going to be used for education. After all the taxes and penalties, you MIGHT keep pace with inflation if you're lucky...
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Apr 22, 2019 18:36
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529 plans have a real limited purpose. I don't doubt people are abusing them, but doing so adds a bunch of risk for little gain. And going back to what I said about their underperforming the market, unlike index funds you generally don't janitor your 529 plan. You usually pick the age defined risk bracket and forget about it. And if your kid is 16 years old during one of the biggest bull markets in decades you lose out because everything is now in low risk bonds expecting to be withdrawn in 2 years.
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Apr 22, 2019 18:48
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My [24M] girlfriend [23F] wants to move in together, but she is terrible with money and this has me worried about my own finances. Relationships submitted 5 hours ago by returnofthemacintosh quote:I've been with my girlfriend for about a year and a half. I live in London a shared house with housemates, she currently lives in a commuter town in Essex (near London) with her parents and commutes in every day. She's getting a promotion soon which will bump her pay up to £32k a year which is similar to the same salary that I am currently on (£35k), so she's floated the idea of us moving in together as she thinks we will be able to afford it.
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Apr 22, 2019 19:08
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529s also count for private K-12 now too right?
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Apr 22, 2019 19:14
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Motronic posted:My [24M] girlfriend [23F] wants to move in together, but she is terrible with money and this has me worried about my own finances. Relationships I would love to see how she spends that much money with no rent or bills. That's insane.
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Apr 22, 2019 19:22
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Buying expensive clothes and accessories plus eating out all the time is my bet. Spending to maintain a lifestyle way above your actual income is a bitch.
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Apr 22, 2019 19:24
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SpartanIvy posted:I would love to see how she spends that much money with no rent or bills. That's insane. Literally any good or service or experience that you indulge in has a luxury version that costs 10 to 100 times as much There are $1,500 white t shirts and $100,000 a night hotels EDIT: obviously you know that, but my point is, "probably just boring normal stuff like we all buy" and drugs GoGoGadgetChris fucked around with this message at 19:44 on Apr 22, 2019 |
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Apr 22, 2019 19:25
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Krispy Wafer posted:They will pay tax on any earnings. But again, there's no tax advantage for the giver In NY, 529 contributions are state and local tax exempt and qualifying withdrawals are not taxed at all.
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Apr 22, 2019 19:38
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Chin Strap posted:529s also count for private K-12 now too right? Yes, but that's really only useful in states that have tax deductions for 529 contributions. You'd basically be funneling tuition money through the 529 in order to get tax benefits, as well as SOME tax-free gains. Otherwise, unless it's heavily front-loaded or you start years before your kid's born, you'll never get enough gains from a 529 to make a significant impact on 13 years of private school. Maybe a few months worth of tax-free gains each year before you have to pull it out and pay a tuition bill.
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Apr 22, 2019 20:07
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GoGoGadgetChris posted:Literally any good or service or experience that you indulge in has a luxury version that costs 10 to 100 times as much Yeah this. Also in London there is a class of yuppie who make a point of doing poo poo like buying the £10000 bottle of wine when they're out drinking just so they can boast about having the most expensive line item on the bill. It's not hard to blow through money when you're making an average salary but trying to keep up with even the tamer end of that.
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Apr 22, 2019 20:11
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Krispy Wafer posted:529 plans have a real limited purpose. I don't doubt people are abusing them, but doing so adds a bunch of risk for little gain. I can only speak for Illinois, but there is an array of about 50+ different funds available, from typical age based stuff to regular old Vanguard S&P500 that you can choose from. The ER's are basically the same as the underlying funds too. Even disregarding all the tax benefits, it's nice to have a kind of separate bucket of savings that you can't really touch.
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Apr 22, 2019 20:53
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Yeah 529s are pretty sweet. I think you can front load ten years as well or something?
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Apr 22, 2019 21:29
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Barry posted:I can only speak for Illinois, but there is an array of about 50+ different funds available, from typical age based stuff to regular old Vanguard S&P500 that you can choose from. The ER's are basically the same as the underlying funds too. I just checked and I have six options. So yeah, states can vary a lot.
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Apr 22, 2019 21:42
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DaveSauce posted:Yes, but that's really only useful in states that have tax deductions for 529 contributions. You'd basically be funneling tuition money through the 529 in order to get tax benefits, as well as SOME tax-free gains. If you have surmised that almost all of the tax benefits of 529 plans accrue to already-rich people looking for places to put leftover money and transfer wealth to children and grandchildren tax-free, and not to average people who can only pay as they go for schooling, then you would be 100% correct
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Apr 22, 2019 23:02
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Motronic posted:My [24M] girlfriend [23F] wants to move in together, but she is terrible with money and this has me worried about my own finances. Relationships The real answer to that is to take whatever date your lease renewal will fall on that's at least six months out, and tell her that if she can manage to stash away £900 a month in that time, you will totally move in together. And if that upsets her, you're just having a long-overdue conversation about finances that needs to be had before you move in together, or even begin to think about getting married.
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Apr 22, 2019 23:39
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Residency Evil posted:Yeah 529s are pretty sweet. I think you can front load ten years as well or something? There are no annual contribution limits to 529s. Most plans have a lifetime max per beneficiary they'll accept, and you can put that all in at once if you have the scratch.
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Apr 22, 2019 23:43
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My BF (32 M) refuses to take a vacation with me GF (28 F) because I can invest the money on him.. Hence my questions, what's fair in a relationship? We have been dating for 5 close to 6 years. [new] submitted 2 hours ago by sexylassy https://www.reddit.com/r/relationships/comments/bg79z5/my_bf_32_m_refuses_to_take_a_vacation_with_me_gf/ quote:Hi! I’ve been in a relationship for five (close to six years.) I am madly in love with the person I am dating. But I am having trouble with what’s fair in a relationship and where I should draw the line..
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Apr 23, 2019 00:01
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Motronic posted:My [24M] girlfriend [23F] wants to move in together, but she is terrible with money and this has me worried about my own finances. Relationships I don't get why he would start with the assumption that she pays 200 and he pays 1200... if they make about equal money why not assume she contributes half? Sounds like they'd be able to make it work assuming she was ok with paying half.. and if not well the problem solves itself. If he were making substantially more I could see an uneven split, but here it just doesn't make sense.
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Apr 23, 2019 00:03
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Motronic posted:My BF (32 M) refuses to take a vacation with me GF (28 F) because I can invest the money on him.. Hence my questions, what's fair in a relationship? We have been dating for 5 close to 6 years. [new] Yikes, this one's a train wreck. I wish I could see where their lives were at when they met (at 22 and 26 years old) and what life events have happened (while dating!) that put them in their wildly different positions today. Raldikuk posted:I don't get why he would start with the assumption that she pays 200 and he pays 1200... if they make about equal money why not assume she contributes half? Sounds like they'd be able to make it work assuming she was ok with paying half.. and if not well the problem solves itself. If he were making substantially more I could see an uneven split, but here it just doesn't make sense. Some weirdo couples split their expenses based on their 'monthly income after discretionary spending' rather than their actual income. {gently caress you don't give me a 6er for saying this but} I know a couple who make the same amount but split their apartment 70/30 because she goes to a $800/month gym and can't afford to pay much rent.
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Apr 23, 2019 00:09
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Raldikuk posted:I don't get why he would start with the assumption that she pays 200 and he pays 1200... if they make about equal money why not assume she contributes half? Sounds like they'd be able to make it work assuming she was ok with paying half.. and if not well the problem solves itself. If he were making substantially more I could see an uneven split, but here it just doesn't make sense. In that particular situation, I would be completely unwilling to take her word for being able to cover half, which is probably why he was thinking of the 1200/200 split. That sets a real bad precedent going forward, though it avoids the immediate confrontation of the "I don't think you can afford this" discussion. Having that discussion now, however, is going to save the both of them a lot of headaches (both financial and relationship) going forward.
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Apr 23, 2019 00:14
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My Filipino husband and will not stop sending his parents money [new] submitted 6 hours ago by TryingtosaveF https://www.reddit.com/r/relationships/comments/bg4t75/my_filipino_husband_and_will_not_stop_sending_his/ quote:Hi all. Long time lurker but first time posting so I’m sorry if this is a little all over the place. quote:[–]travelbug898 He physically can't.  e: turns out the best BWM isn't in /r/personalfinance, it's in /r/relationships Motronic fucked around with this message at 00:52 on Apr 23, 2019 |
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Apr 23, 2019 00:49
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Motronic posted:My Filipino husband and will not stop sending his parents money [new] Well on the plus side, she'll shortly be the happy recipient of almost half of his money!
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Apr 23, 2019 01:55
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