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Leperflesh posted:For a single sale of moderate dollar amounts, they'll provide you with the documentation you need (exactly what the item(s) sold for, their commission, and the money they gave you), but you need to handle the tax stuff yourself because they don't have a record of your cost basis in the thing you sold, or even necessarily which state you live in, etc. For example, my wife has some art items that sell from a place in colorado, they mail her a document each year listing the dollar amounts but that's it, we have to handle the tax implications ourselves. do you also mean your wife paints or did she hold some old art items that held value? quote:For larger amounts, such as transfers of money of $10k+, there's reporting rules (to combat money laundering I believe). If you're operating as a business buying and selling things, there's forms for that. If you're selling hundreds of items on ebay or with paypal etc. for $20k a year or more, you may receive a 1099-k related to all those electronic transactions. i think this applies to everyone selling things on eBay/paypal. and even worse is that its being lowered to $500 in 2022 unless it's overturned
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Jul 19, 2021 23:01
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Space Gopher posted:You’re probably looking for the tale of Bob, the world’s worst market timer. That’s it thanks!
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Jul 19, 2021 23:20
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Strong Sauce posted:yeah i was more interested in if they have specific definitions of what is a collectible. it doesn't seem to include trading cards like baseball cards or pokemon and the ilk. but also kinda sucks with having to deal with it yourself... quote:do you also mean your wife paints or did she hold some old art items that held value? She's a ceramic artist and she did a residency at Anderson Ranch in Colorado. When she left, she put a handful of smallish items up for sale in their store. They collect a commission (which is actually a charitable donation) and remit the rest to her as a check. She typically gets like $100 a year or so from them. Dunno if they've sold all the items she left there by now, probably they have. For tax purposes for a while there we had to file an income tax form for CO just to declare that income, which was really loving stupid. quote:i think this applies to everyone selling things on eBay/paypal. and even worse is that its being lowered to $500 in 2022 unless it's overturned Yeah it's dumb.
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Jul 20, 2021 00:45
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Just got an email saying that HMBradley's deposit accounts are moving to invite only (as referrals from current account holders) for now. Guess too many people are taking advantage of that 3% offer.
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Jul 20, 2021 16:55
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Speaking of HM Bradley, I guess I was never asked what my income is, so when I click to their credit card offer I see this: What an astounding deal.
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Jul 20, 2021 19:48
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Xenoborg posted:Speaking of HM Bradley, I guess I was never asked what my income is, so when I click to their credit card offer I see this: I feel like you should sign up for that out of spite.
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Jul 20, 2021 20:27
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Xenoborg posted:Speaking of HM Bradley, I guess I was never asked what my income is, so when I click to their credit card offer I see this: Get it for when you want to get out of paying the bar tab with friends. "What, declined? I guess I'm over my limit already!"
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Jul 20, 2021 21:04
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I need some help figuring out what kind of professional to hire for help with finances/taxes. My parents have been approached by real estate brokers on behalf of a developer to buy some property that they've had forever for a few million dollars, which is way more than they've ever dealt with at once. They're retired on pensions and have a decent amount of other savings and investments, so they don't immediately need cash from the sale and want to handle it in the best way possible. They'll need to figure out how to plan around the taxes for the initial sale, then get the funds invested. The brokers suggested something called a 1031 swap as a possibility, but we're a little out of our depth. Is a normal financial advisor from somewhere like Fidelity the right place to go, or do they exclusively deal with investment funds? Do we just need a CPA to help calculate the tax burden and make estimated payments? Is there a particular kind of lawyer we should have on our side for this process, or is that not really necessary? I'm just not really sure where to start and want to get them the right kind of professional help, since I'm sure a lot of decisions will need to be made before the sales process goes further.
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Jul 20, 2021 21:31
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Xenoborg posted:Speaking of HM Bradley, I guess I was never asked what my income is, so when I click to their credit card offer I see this: A 60 dollar annual fee with a 20 dollar credit limit. Dayum.
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Jul 20, 2021 21:32
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Xenoborg posted:Speaking of HM Bradley, I guess I was never asked what my income is, so when I click to their credit card offer I see this: Sign up, insist on paper statements, use it once every 6mo
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Jul 20, 2021 21:38
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Grandito posted:I need some help figuring out what kind of professional to hire for help with finances/taxes. You want to fins an estate attorney if they are already retired and set. That attorney should be able to help you find the right CPA to sort this out. 1031 exchange is probably useless to them. Unless they want to buy another piece of property with the proceeds that is.
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Jul 20, 2021 21:55
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Grandito posted:I need some help figuring out what kind of professional to hire for help with finances/taxes. I'm assuming this isn't their primary home, and so all the profits would be capital gains. If they did any remodels, they should be digging for receipts, as that will lower their tax bill somewhat. A CPA will do the tax stuff post-hoc, but probably won't be good at walking you through different options prior to the sale. You could contact a CFP from the Garrett network (https://www.garrettplanningnetwork.com/) as they do hourly work and could possibly help talk you through the options. Fidelity isn't going to touch this.
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Jul 20, 2021 22:02
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moana posted:A 1031 exchange is a way to defer taxes by immediately (within like 90 days) buying another rental property with the proceeds of the first, so they would just be switching from one property to another in order to defer paying taxes. Is that something they would want to do? Do they even want to sell/ are they currently renting it out? Holding until they die is (as of now) the best tax move for their heirs, but if they want the money before kicking the bucket, a 1031 may make some sense if they hate taxes and don't mind being landlords. The other option is to suck it up and just sell and pay the tax man. This isn't their primary home, but they weren't originally planning on selling and were going to start renting it out soon. The developer interest is offering about 2.5x what they thought it was worth and to them the opportunity seems too good to pass up. The rental income would be nice, but the lump sum would probably go further to improving the quality of their retirement and getting them a bigger boat. I'd personally prefer the land stay in the family but that's not necessarily what's best for my parents. If that financial planner can walk them through their options, that would be exactly what I'm looking for right now. Thanks a lot for the help!
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Jul 20, 2021 22:52
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Grandito posted:getting them a bigger boat. 1031 houseboat exchange
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Jul 20, 2021 22:55
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If you exchange the deeds to your houseboats in international waters it's not a taxable event at all. The IRS calls it the Seaman's Switcheroo
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Jul 21, 2021 00:06
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Silly Burrito posted:Just got an email saying that HMBradley's deposit accounts are moving to invite only (as referrals from current account holders) for now. Guess too many people are taking advantage of that 3% offer. That doesn't feel like an great sign - still slightly nervous about the money I have parked there.
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Jul 21, 2021 01:14
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If it floats, flies, or fucks, you'd be a fool not to buy it!
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Jul 21, 2021 01:41
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I think the general answer is "yes" but would like a sanity check. Overseas us government employee, so therefore their earnings are not subject to foreign earned income exclusion, marries a foreigner. Can they then open a IRA for the foreign national non US resident spouse and make a contribution based on the spousal contribution rules? First question - is this allowed? Second question - edit: MFJ required as a standard. Forgot that basic part before posting. Spaceguns fucked around with this message at 03:49 on Jul 21, 2021 |
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Jul 21, 2021 03:42
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Am I right in thinking that 401k contributions reduce taxable income for capital gains purposes? Like if you make 50k a year, and contribute 19.5k, that knocks you below the 40k threshold where you aren't paying tax on gains, as long as they aren't gains that bring your income above the 40k mark? Roth IRA wouldn't work the same way because it's taxed when it goes in? Do I have that all right?
Meow Tse-tung fucked around with this message at 23:35 on Jul 21, 2021 |
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Jul 21, 2021 23:20
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ROJO posted:That doesn't feel like an great sign - still slightly nervous about the money I have parked there. I had the same thought too, not sure why they would want to slow down the rate of new money coming in.
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Jul 22, 2021 03:07
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Meow Tse-tung posted:Am I right in thinking that 401k contributions reduce taxable income for capital gains purposes? Like if you make 50k a year, and contribute 19.5k, that knocks you below the 40k threshold where you aren't paying tax on gains, as long as they aren't gains that bring your income above the 40k mark? Roth IRA wouldn't work the same way because it's taxed when it goes in? Do I have that all right? Yep you got it.
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Jul 22, 2021 09:05
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Meow Tse-tung posted:Am I right in thinking that 401k contributions reduce taxable income for capital gains purposes? Like if you make 50k a year, and contribute 19.5k, that knocks you below the 40k threshold where you aren't paying tax on gains, as long as they aren't gains that bring your income above the 40k mark? Roth IRA wouldn't work the same way because it's taxed when it goes in? Do I have that all right? In a traditional 401k, you’re taxed when you withdraw.
So if you make $419.5k salary and contribute $19.5k: you’ll pay $0 of taxes on the $19.5k. Your income at the time of contribution does not matter in any way. That $19.5k contribution will reduce your taxable income to $400k. This is significant because the taxation on such high income is large. Your income at the time of withdrawal matters! Social Security is treated as income, your retirement part-time job counts as income, and your traditional 401k withdrawals count as income. If you withdraw / make a total of $100k, you’re going to pay taxes as if you’ve made an income of $100k. Capital gains is completely irrelevant. — edit: Oh, I guess if you are managing a taxable brokerage that’s generating capital gains while simultaneously contributing to a 401k: yeah, it changes your tax bracket. BUT..! Capital gains themselves are a type of income! If you make $0 of “ordinary income” and sell $1M of stock with a $0 cost basis — so $1M capital gains — you better believe you’re going to be paying taxes (albeit at a lower rate). CG is taxed after ordinary income. DNK fucked around with this message at 13:44 on Jul 22, 2021 |
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Jul 22, 2021 13:28
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Meow Tse-tung posted:Am I right in thinking that 401k contributions reduce taxable income for capital gains purposes? Like if you make 50k a year, and contribute 19.5k, that knocks you below the 40k threshold where you aren't paying tax on gains, as long as they aren't gains that bring your income above the 40k mark? Roth IRA wouldn't work the same way because it's taxed when it goes in? Do I have that all right? Yes, in you example (simplified): 50K - 19.5K = 30.5K so you would have 9.5K of room to not pay Long Term Capital Gains from a brokerage account. If your gains are short term though you will have to pay taxes like regular income.
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Jul 22, 2021 14:39
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spwrozek posted:Yes, in you example (simplified): 50K - 19.5K = 30.5K so you would have 9.5K of room to not pay Long Term Capital Gains from a brokerage account. If your gains are short term though you will have to pay taxes like regular income. That's what I thought, thanks all!
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Jul 22, 2021 18:05
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ROJO posted:That doesn't feel like an great sign - still slightly nervous about the money I have parked there. I guess I’m not sure what is making a few folks nervous. It’s an FDIC insured bank so I don’t really know what the potential issue would be? Despite saying that the interest rates would remain unchanged I could see that changing in a heartbeat one day but am I missing something about the safety of the money itself? I have a good chunk of my savings there now and I just hit the 3% tier this quarter 
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Jul 23, 2021 02:59
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I mean I'm not personally nervous, but FDIC insured just means you will get your money back eventually, not that you'll get it back any time soon.
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Jul 23, 2021 05:28
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I am at a bit of a crossroads here. I use a financial planner with a 1% fee but I am kind of ready to go do my own thing. I am not sure which platform to use, how to get my poo poo to there, or even how to do my own poo poo. I am happy with their performance and advice, but I have always wanted to do more. The advisor set up a good portfolio with lots of diversity (mutual funds, stocks, etc.) but here is an example. I talked to them about the AMD stock and they kind of dismissed it like it was some sort of scam or hot potato (which it admittedly is). Ok, I still wanted to do something with it. If I have to go out and open a robinhood or whatever, what sense does it make to have an advisor and then also do my own stuff? My stuff is in kind of targeted wells fargo type funds anyway, so I could just do something like that through vanguard. I have heard TD ameritrade is good too. I don't know what to do and it is giving me a lot of anxiety. I have maxed out my IRA in the past, then I switched over to a Roth IRA. I have maxed out at some points but then not contributed for periods of time. I am not too great with money, either. Bleh. I am 34 and have the average income for where I live plus good benefits. I want to retire at 55 or so and I think that I'm ahead of the game. I am just getting cold feet. I like my advisor but I have had many desires to pull out my money and manage it myself because I know that 1% is a high fee for what I am getting, but I have always made excuses to not do it. If I were to pull out and just have some sort of independent or self-governed account, what would that look like? I am afraid to be honest.
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Jul 23, 2021 16:01
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vandalism posted:I don't know what to do and it is giving me a lot of anxiety. Gambling rather than investing SHOULD give you a lot of anxiety. There's an easy way to fix this: don't do it. Move your money to Vanguard or Fidelity and put it into a target date retirement fund and forget about it while you read about the three-fund portfolio and decide if you even want to bother over the target date funds you already own.
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Jul 23, 2021 16:08
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Motronic posted:Gambling rather than investing SHOULD give you a lot of anxiety. There's an easy way to fix this: don't do it. Yeah, I don't want to gamble with big money. I want to dick around with like... a couple of thousand maybe and see where that gives me. Like, as a hobby. Nothing extreme, just something where if it goes down it won't devastate me. A few thousand is still a lot, but it could be big and won't kill me if it is gone. The thing about what I have now is... it is (for me) quite a bit of money. I want to be 100% sure of what I am doing before I do it and have my spouse be on board, too. I know that Vanguard is solid. Would vanguard help me get my money over from my current stuff? Is that somethign I would just need to call them about and find out?
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Jul 23, 2021 16:15
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The Vanguard website is boring as gently caress and is not designed to help you gamble with stocks. If you want to experiment with that then you will probably be happier with almost anything but Vanguard.
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Jul 23, 2021 18:24
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i might suggest Vanguard for your non gambling money and whatever the stock picking thread recommends for the gambling money
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Jul 23, 2021 18:29
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KYOON GRIFFEY JR posted:whatever the stock picking thread recommends for the gambling money Why would you hurt someone like that?
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Jul 23, 2021 18:35
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KYOON GRIFFEY JR posted:i might suggest Vanguard for your non gambling money and whatever the stock picking thread recommends for the gambling money This is what I did. I should have just stuck with Vanguard for my non-gambling money and kept on ignoring the stock picking thread.
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Jul 23, 2021 18:37
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withak posted:The Vanguard website is boring as gently caress and is not designed to help you gamble with stocks. If you want to experiment with that then you will probably be happier with almost anything but Vanguard. This is an excellent reason to put your retirement money into Vanguard. If you must gamble, then open up a separate Fidelity account, and you can get your jollies and constant ads for their chatbot there. Keeping your gambling and retirement money separate makes sure you don’t do dumb things like say “well I’m up overall, might as well keep going with the stock picking!” when your index funds are doing well and your individual stock picks are lighting money on fire.
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Jul 23, 2021 18:46
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Residency Evil posted:This is what I did. The stock picking thread was recently renamed the gambling thread to differentiate it from this one, hth
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Jul 23, 2021 19:20
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So I’m debating $EWY vs $KF for Korea exposure because buying individual Korean stocks is … lolbad for tax difficulty. Aside from $ewy having lower fees and $kf trading at a 15% discount, anything else I should be looking out for?
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Jul 24, 2021 03:26
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vandalism posted:I am at a bit of a crossroads here. I use a financial planner with a 1% fee but I am kind of ready to go do my own thing. I am not sure which platform to use, how to get my poo poo to there, or even how to do my own poo poo. I am happy with their performance and advice, but I have always wanted to do more. The advisor set up a good portfolio with lots of diversity (mutual funds, stocks, etc.) but here is an example. I talked to them about the AMD stock and they kind of dismissed it like it was some sort of scam or hot potato (which it admittedly is). Ok, I still wanted to do something with it. If I have to go out and open a robinhood or whatever, what sense does it make to have an advisor and then also do my own stuff? My stuff is in kind of targeted wells fargo type funds anyway, so I could just do something like that through vanguard. My wife also had an advisor-directed wells fargo account. Not only was the advisor fee unnecessary, but the chosen funds themselves charged much higher fees than needed as well. As others said, move the money to Vanguard and put it in a target retirement or three fund portfolio, and you'll save quite a bit in the long run.
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Jul 24, 2021 05:14
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Yep. Vanguard all the way. Does it seem boring? GOOD. While it's of course not the only criterion for figuring out a good investment strategy, please understand that long-term retirement investing is boring as gently caress and should not involve market-timing, hot new stocks, Jim Cramer in any form whatsoever, and as few car chase scenes as possible.
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Jul 24, 2021 06:40
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runawayturtles posted:My wife also had an advisor-directed wells fargo account. Not only was the advisor fee unnecessary, but the chosen funds themselves charged much higher fees than needed as well. As others said, move the money to Vanguard and put it in a target retirement or three fund portfolio, and you'll save quite a bit in the long run.
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Jul 24, 2021 13:53
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spf3million posted:My dad recently moved everything to an advisor-directed Wells Fargo account too. Same story. 1% AUM fee plus a weighted average of 0.63% ER on all of the mutual finds. When I ran the math and showed him how he's paying roughly $15,000 per year in fees vs around $2,000 if it were in boring Vanguard indices, he finally got at least somewhat interested. The problem is he never got any financial education and wants basically nothing to do with it. He's open to me helping him ("it'll be your money someday anyway") and I'm more than willing but I'm a little concerned I'd screw something up when it comes to tax minimization and/or other retirement-specific issues which I'm less familiar with. I'd like to set him up with a fee-only advisor and a maybe a CPA. Even if we're conservative and assume he pays $3k/yr for both, he's still saving 5 figures every year. Nothing wrong with paying someone to manage his retirement funds (despite a prior rant I may have posted a month ago taking the other side of this opinion). Especially because it removes potential financial stress between you and your dad. Say the market tanks or whatever. Out of your control whether it’s you managing it with index funds or a fee only advisor, but with the latter, you don’t get blame (which, whether right or not, could happen). Simone posted a link in the last few pages of a site to search for fee only advisors , if you are worried at all I would start there. Good for your dad for being open to change btw.
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Jul 24, 2021 14:09
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