For questions that relate to the laws, practices, and products of the United States.

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2answers
164 views

Formation of S-Corp for Gambling Trade

Does anyone have personal experience with incorporating an S-Corporation for the gambling trade? In cases where the gambling activity is consistent and produces sufficient income (versus, say, an ...
3
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1answer
21 views

Taxes on AirBNB income for renter

I have been living by myself in a large multi-bedroom apartment in a 3-apartment house owned by my landlord, who lives downstairs. We have been renting out the apartment I live in from time to time on ...
3
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1answer
217 views

What is the psychology behind the Dead Cat Bounce Pattern and how can it be traded?

With the turmoil that hit most markets in the last two weeks followed by a small recovery late last week, are we seeing a classical Dead Cat Bounce appear infront of our eyes? Looking at the charts ...
2
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1answer
100 views

House inheritance tax question

I am a little at a loss. A couple years before my mother-in-law passed away she signed her house over to my wife and her sister via a quitclaim deed. After she passed we sold the house for ...
3
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0answers
46 views

Realtor Credit or Kickback

Its our first home purchase in Maryland, USA. Our realtor agreed to give us 2% kickback (towards closing cost) and she keeps 1% from the 3% commission she gets. If base price of our home is 400K, ...
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1answer
41 views

CitiBank or HSBC account in India but use funds in America

I have some money in India that I plan to transfer to an international bank such as Citi or HSBC. Once the money is in the account, can I use those funds in America? Are there any tax liabilities in ...
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2answers
2k views

Where to report 1042-S income and federal tax withheld on form 1040?

Since I have become a resident alien of the U.S., I still received a 1042-S from my school because the school was not aware of the change of residency. The school refuses to change the forms and ...
15
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3answers
3k views

Mortgage sold to yet another servicer. What are my options?

I purchased my first home back in June (roughly 2.5 months ago) with a smaller, but very reputable, mortgage firm in the area (Maryland). It has great reviews online, and everyone whom I know that has ...
4
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1answer
613 views

Fair Market Value Vs. Assessed Value

As my research, there are two criteria on home values. Market Value and Assessed Value. Market Value used between buyer and seller to get agree on sales price and Assessed Value is used to calculate ...
3
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2answers
188 views

What is this option offering me on my loan repayment?

I was just updating my auto-repayment for my student loan, when I was given the following option: I am not sure what the difference is here between these two options - why would allowing interest ...
2
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0answers
98 views

Price drop protection on Apple iPhone

Two of my credit cards (Discover and Citi) have programs for cardholders that allow you to buy a product and if the price drops in certain amount of time, file a requests to be reimbursed the ...
3
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1answer
56 views

Renting out rooms in my home, what's the proper way to deal with utilities for tax purposes?

I rent out two rooms in my home. Currently we split the utility bill between 3 people, i.e. the utility bill is in my name, and I pay the utilities and then get reimbursed for the other two thirds by ...
3
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2answers
1k views

How does mortgage payoff work logistically?

Let's say I am in a position to pay off a mortgage. I understand that there is a "payoff amount" that may not correspond to my balance due to various escrow and interest calculations. What I'm not ...
2
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2answers
38 views

Selling mutual fund and buying equivalent ETF: Can I 1031 exchange?

I have a taxable investment account consisting of Vanguard mutual funds that I have held for less than a year. I recently learned that ETFs are more tax efficient in nature because the managers don't ...
3
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2answers
61 views

How to get individual long-term disability insurance when you already have a group LTD plan with your employer?

I am a tech worker. My employer offers group LTD that covers 60% of my salary? I went out in the market to get an individual policy but my agent cannot find a company who will underwrite a policy with ...
2
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1answer
225 views

30-year-old saved $30,000: what should I do with it?

I'm a 30-year-old living in NYC with a decent job, not married / no kids. I've now saved $30K and it's just sitting in a savings account, earning next to nothing. I have never invested in the stock ...
2
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1answer
68 views

What is HSA contribution limit with 75% HRA compensation?

I have HDHP family plan through my employer with $3000 family deductible. My employer also has HRA that covers all my expenses after 750$ and before $3000 (=75% of 3000 deductible). I claimed only ...
4
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2answers
166 views

Seller is eager to offer a nice-looking house on a rent-to-own scheme: could this be some kind of scam?

A couple of years ago I was looking to move from the townhouse I was renting. After checking the rental adverts at craigslist I made an appointment to see an townhouse that looked quite nice and clean ...
7
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1answer
876 views

Pay for my parent's PLUS loan - tax implications?

I recently payed off my college loans and now want to pay for the PLUS loans that my parents took out to pay for my education. Does the gift tax apply if I pay the loan provider directly? I'm not ...
4
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3answers
152 views

Why does my brokerage show “adjusted due to previous wash sale disallowed loss” when I sold my entire position?

Over a month ago, I wanted to do some tax-loss harvesting. I wanted to sell a fund that had dropped in value and replace it with a more generic fund. Right before I sold, the fund paid out dividends ...
3
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1answer
36 views

Administrator vs Broker vs Custodian for a Solo 401(k)?

I'm planning to open a Solo 401(k) with Schwab. There are some provisions that are decided by the Plan Administrator, which I assumed would be me (my business, technically). However, doing research, ...
0
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1answer
125 views

Working from India in a US company

I'm a new grad, working on a contract position in US for some time now and my contract has almost ended. I got an offer from another company (X), which is quite small (an LLC) but with better ...
3
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0answers
19 views

Did not file W-8BEN but received dividend income from US stocks and zero withholding tax

I am an Indian citizen who worked in US for some time and returned in 2002 to India. I last filed a 1040NR return in 2002 and after that did not file 1040NR. I just realised that I have been receiving ...
6
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1answer
1k views

Withdrawing HSA excess contributions?

I just got married a couple of weeks ago. I have a self-coverage only HDHP through my employer, with an HSA funded by my employer ($3000 per year). My husband has a family-coverage HDHP through his ...
2
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1answer
74 views

Transfer money from U.S.-based NRI friend to my savings account in India?

My NRI friend wants to wire transfer money from his U.S. account to my savings account in India. Could someone please throw light on the procedure to be followed and also the tax implications?
5
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1answer
49 views

Taxable income computed by date earned or pay date?

Is taxable income for a given year computed by the days where the income was actually earned or the pay period in which the pay is issued? For example, suppose the pay period for an employee spans ...
10
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6answers
2k views

Does my net paycheck decrease as the year goes on due to tax brackets filling up?

I am trying to budget my money for the next few months to save up money to move out. In a month, my taxable wages for the year will have crossed the bracket from 15% - sub $37450, into the 25% ...
0
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0answers
40 views

Why would most US companies allow Direct Stock Purchase Plan (DSPP) for US residents only?

All companies I would be interested in to contract a Direct Stock Purchase Plan (DSPP) links to computershare.com which requires the buyer to reside in the US (with a valid security number). Is there ...
0
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1answer
63 views

How does one transfer funds between a French bank account and a US bank account?

Say Person 1 has a French bank account, and Person 2 has a U.S. bank account. Person 1 wants to send funds to Person 2. Person 1 can add a new person to their list of beneficiaries, but the French ...
2
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1answer
43 views

HSA contribution cap on a new HDHP plan?

What is the HSA contribution cap for single enrollment in a HDHP partway into the year? Assume that the participant was not previously enrolled in any other health plan has not made any HSA ...
0
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1answer
36 views

Split Roth 401k Rollover between Traditional IRA and Roth IRA

Does the guidance in IRS Notice #2014-54 apply to Roth 401k rollovers? Specifically, is it possible to do a out-of-service rollover on a Roth 401k such that: The earnings are put in the Traditional ...
2
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1answer
50 views

Do I have to file a tax return on a federal work study job?

I recently obtained a federal Work study job at my college. I filled out paper forms that were a bit obtuse to me. A I-9 form and a w-4 I think. I obtain $1200 maximum from this job. So do I have to ...
2
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1answer
178 views

My dad wants to transfer money from India to US as a family maintanance

What is the tax implication if my dad is sending money to me here in US as a family maintenance? Do I have to pay tax on that money and how much will that be?
2
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1answer
25 views

Does Form 8938 have to be signed?

Unless I'm blind, I don't see any place on Form 8938 for a signature. As it's submitted with the normal tax return, presumably the signature on the 1040 covers this - correct?
19
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4answers
13k views

Sales tax “trick” while buying a used car; i.e. declaring sale at lower than actual transaction value?

I am selling my car and have found a potential buyer. After I transfer the vehicle ownership, the buyer will have to transfer the vehicle title to himself, and will also need to pay sales tax on the ...
0
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1answer
33 views

Is IRS Form 8938 asking me to double-count foreign assets?

FBAR and Form 8938 require the reporting of the maximum balance/value of a foreign account during a tax year. If, say, I sell $100,000 worth of stock from my (foreign) securities account and desposit ...
10
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2answers
697 views

Why is there a $398,351 – $400,000 tax bracket in the U.S.?

It seems as if anyone that's getting paid $398,351 – $400,000 would simply lower their salary to the $183,251 – $398,350 tax bracket and get 2% lower income taxes. Does the bracket serve any purpose, ...
0
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1answer
37 views

Can S-Corp loss offset gain?

I made 2 investments via my S-Corp. The first, in apartment buildings which is being sold for a gain, and the second in a hi-tech startup which failed and closed. Can the loss from the startup offset ...
4
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3answers
1k views

Can someone explain to me how should I go about paying off my student loans?

I have two loans right now: $72k Balance - Minimum of ~$500/month payments and $30k Balance -Minimum of ~$350/month payments The part that is confusing me is how much of my ...
3
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2answers
189 views

How to take care of multiple student loans (consolidation, payment strategies)

I've freshly graduated college. Here's my current standing: I estimate ~ $1200/month in free cash after bills/entertainment/etc. My loans are as follows (all US based): 1: Perkins Amount: 3,240 ...
1
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1answer
64 views

Are there any US banks that allow you to make an international wire transfer online?

I am an expat and right now I have to get someone to physically go to the bank to make the transfer for me each time. It seems a bit ridiculous in this day and age of high tech and is a royal pain. ...
3
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3answers
192 views

What are my options if my previous employer does not transfer my 401(k)?

I recently (1yr ago) changed jobs and my previous employer has not transferred my 401(k) contributions. I have sent them several emails regarding this. Their typical response is that they are working ...
7
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1answer
357 views

If I'm the only one on the mortgage, do I have to count my significant other's payments as rent for tax purposes?

Lets say I take out a mortgage to buy a house, and I'm the only borrower on the loan. My girlfriend's dad gifts me $125k to pay the down payment. She and her parents go on the title, along with me. ...
2
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2answers
46 views

Any downsides of using 3rd party remittance services?

Are there any downsides of using 3rd party remittance services to send money from US to India ? Like for example I use transferwise to send $x to my dad's account in India, would it show my name as ...
2
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1answer
4k views

Opening a bank account in the USA as a foreigner

I am a mozambican citizen and would like to know whether I can open a bank account in the USA. I don't live in the US but am planning to buy a house and put it on rent. What requirements should I meet ...
1
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1answer
85 views

Income tax laibility in India for Stock traded in USA as a resident Indian

I lived in US for more than 9 yrs on H1B visa and was maintaining US stock portfolio and was filing taxes in US as 1099 for stocks plus my salary as 1040. Now I am planning to return to India but ...
2
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1answer
56 views

How to interpret the interest rate of treasury notes?

I am new to investing in the US and money terms in English, so forgive me if this is a stupid question. From this table, I can see, for example, that the most recent 2-year treasury note sale had an ...
6
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2answers
230 views

When do I need to transfer money to the owner when buying a used car? Used car transaction paperwork and details

Dear financial experts ! I have never bought a used car before. I bought my first car brand new from a dealership, so I was not worried about the paperwork. Now I am looking to buy a used car from ...
0
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1answer
81 views

Are there special tax implications when paying for services in the next year? In another country

So I'm planning a destination wedding over a year in advanced. We've begun putting deposits down on things happening next year. I know I still have to pay VAT in the other country (Its ridiculous). ...
8
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1answer
127 views

What if an employer sets up and contributes to an HSA for an ineligible employee - can he withdraw the excess contributions with no penalty?

My son is 21 years old and starting his first job. He is covered under my health insurance, which is a non-HDHP PPO, until he turns 26. (Because I have other children, I wouldn't save any money by ...