New answers tagged

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Since then I had gotten a job at a supermarket stocking shelves, but recently got fired because I kept zoning out at work This is not a good sign for day trading, where you spend all day monitoring investments. If you start focusing on the interesting math problem and ignoring your portfolio, you can easily lose money. Not so big a problem for missed buy ...


0

So you're 23 with no higher graduation, certificates etc which would allow you to study / training but with a high passion for logical thinking and math? Im 31 now, i was in a similar position back then when i was 23. The very best thoughts i want to throw you over: FORGET IT (AT LEAS THIS WAY) - You need cash equity (not borrowed) to even get a foot in ...


3

Your plan won't work. Working 40 hours a week at federal minimum wage (currently $7.25 / hr) for 52 weeks is an annual income of just over $15,000. Even assuming you can reliably get a return of 15% (which you definitely can't), you'd need to start with $100,000 of assets to earn this poverty income. Assuming a more reasonable 7% bumps the required assets up ...


0

If your 2015 U.S. income is $0, then you won't be able to contribute to either a Roth or Traditional IRA for 2015. With a Roth IRA, normally excess contributions are subject to a 6% excise tax. However, if you withdraw your contribution before the October 15 extension deadline along with any earnings that your excess contribution earned, it will be treated ...


2

Don't worry about it. The State doesn't care about rounding error. All you need to do is say "We charge our prices with tax included" - you know, like carnivals and movie theaters. Then follow the procedures your state specifies for computing reportable tax. Quite likely it wants your pre-tax sales total for the reporting period. To get that, total up ...


1

If this is for a prior tax year and the amount isn't all that significant then you might be better off just letting it go. As long as you can show that you acted in good faith by filing using the W2 given to you at the time, it's highly unlikely the government would have much issue with it. If, as a matter of conscience, it would make you feel better, you ...


2

As JoeTaxpayer has commented, the markets are littered with the carcasses of those who buy into the idea that markets submit readily to formal analysis. Financial markets are amongst the most complex systems we know of. To borrow a concept from mathematics - that of a chaotic system - one might say that financial markets are a chaotic system comprised of ...


3

Summarizing the info you put into your comment: After tax, insurance, 401K etc, I'm bringing home about 5000$ a month Expenses 1300 goes to rent 200 utilities 180 phone 60 internet 250 car 750 church 600 food --------- 3340 TOTAL By your own estimate, you have an extra $1500 or more every month to put toward the debt. If you don't actually ...


2

It seems a spouse meeting is in order. When you sit down with your wife, don't use the word budget. Instead, talk about priorities. You need to find a way to show that you understand her, that she's sacrificed for this time, and deserves a bit less restraint on the spending. On the flip side, you need to show what the interest on this debt is costing, yet ...


2

It seems that you should have enough income to do all of this. Here is my estimate: $90,000 gross pay * 75% (very rough tax estimate) $67,500 take home pay - 15,600 rent ($1300 * 12) - 6,000 401(k) ($500 * 12) $45,900 remaining You should easily be able to pay $11,000 of credit card debt in less than a year. If you are having trouble coming up ...


1

Here is a list of solutions I would use starting with the easiest: Check to see if your bank offers the ability to send money to someone's bank account by entering the recipient's checking account number and bank's routing number. If so get the recipient's account info from a voided check. USAA and Capital One 360 offer this feature and other may as well ...


4

Tax exempt contributions made to an employer Section 125 Cafeteria plan are governed by the IRS. The IRS states that the election change may not be made during a plan year except for certain qualifying events. Off plan-year changes due to eligibility under a different employer plan, loss of eligibility under a different employer plan and open enrollment at ...


2

It may seem very simple on its face but you don't know the merchant's agreement. You don't know who is providing the processing equipment. You don't know a lot of things. You know that Visa, Mastercard, Discover, Amex and others have network requirements and agreements. You know that laws have been changed to allow merchant surcharges (previously it was ...


2

You have no recourse on the spot to do anything to the vendor other than pay the fee, pay cash, or walk away. If you're on a mission with longer-term horizon than immediate satisfaction, your options will vary by state. If you're in a state where the fees are legal and the owner is (potentially) violating an agreement with the card company, you can report ...


3

You can report the violation to the payment network (i.e., Mastercard or Visa). For instance here is a report form for Visa and here is one for MasterCard. I just found those by googling; there are no doubt other ways of contacting the companies. Needless to say, you shouldn't expect that this will result in an immediate hammer of justice being brought ...


2

This might not be the answer you are looking for, but the alternative to "don't patronize these merchants" is this: DO patronize these merchants, and pay cash. Credit cards are convenient. (I use a credit card often.) However, there is no denying that they cost the merchants an incredible amount in fees, and that our entire economy is paying for these ...


5

Mastercard rules also prohibit asking for ID along with the card. Yet, when I was at Disneyland, years ago (so I don't know if this is still a practice) they asked for my driver's license with every purchase. I can charge up to $200 at Costco with a swipe, not even a signature, but a $5 bottle of water (maybe it was $6) required me to produce my license. ...


1

You will not be able to continue filing with TurboTax if you invest in foreign funds. Form 8261 which is required to report PFIC investments is not included. Read the form instructions carefully - if you don't feel shocked and scared, you didn't understand what it says. The bottom line is that the American Congress doesn't want you do what you want to do ...


1

There are a few things that this question prompts - The step transaction doctrine. I wrote a full page on it, but it's defined as "In short, the tax liability should be determined by viewing the transaction as a whole, disregarding one or more non substantive, intervening transactions taken to achieve the final result.” The original question that let to ...


3

Domestic partner benefits are generally not qualified for tax-exempt status under employer Section 125 cafeteria plans. This is an IRS regulation that has nothing to do with your particular plan. What you're seeing is the tax-free contribution for yourself (and possibly dependents), and an after tax contribution for your domestic partner. Sometimes this ...


0

I use a spreadsheet for that. I provide house value, land value, closing/fix-up costs, mortgage rate and years, tax bracket, city tax rate, insurance cost, and rental income. Sections of the spreadsheet compute (in obvious ways) the values used for the following tables: First I look at monthly cash flow (earnings/costs) and here are the columns: ...


1

The IRS definition of gift you quoted has "full consideration ... received in return". If your friend's help is not contingent upon your monetary offer (as is the case in all your scenarios I believe?), then it shouldn't be viewed as consideration in return of your money, right?


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Part of 'consideration', I imagine, would be the obligation of either party to follow through on an agreement, not only fair market value. Look at the thought experiment from the opposite perspective. If you did not pay him $150 (maybe just $50 or even $0), would you be breaking a contractual obligation to him? If he left after 2 hours because he forgot ...


1

If they own the old house outright, they can mortgage it to you. In many jurisdictions this relieves you of the obligation to chase for payment, and of any worry that you won't get paid, because a transfer of ownership to the new owner cannot be registered until any charge against a property (ie. a mortgage) has been discharged. The cost of to your friends ...


3

it seems you have 2 problems: depression. depression (and happiness) are produced by many factors. humans are extremely bad at predicting what events, decisions and situations will make them happy. if you want to learn about how to improve your emotional state, i suggest you ask a more pointed question along those lines or read up on positive psychology. ...


2

Every time I have loaned money to family members I have never gotten the money back. If they can't make the down payment, they should not be taking out the loan. It's a bad idea to loan money to friends, because when they can't pay you back (which might be forever) they avoid you. So, you lose both your money and your friends.


3

I'd recommend you use an online tax calculator to see the effect it will have. To your comment with @littleadv, there's FMV, agreed, but there's also a rate below that. One that's a bit lower than FMV, but it's a discount for a tenant who will handle certain things on their own. I had an arm's length tenant, who was below FMV, I literally never met him. But, ...


1

As an investment opportunity: NO. As a friendly assist with money you don't mind ever getting back, legal depending on amount. A few years back I was in the housing market myself and researching interest rates and mortgages. For one property I was very interested in, I would need about $4K extra in liquid cash to complete the down-payment. A pair of ...


1

how much taxes would I pay on my income from the rent they would pay me? The same as on any other income. California doesn't have any special taxes for rental/passive income. Bothe CA and the Federal tax laws do have special treatment, but it is for losses from rental. Income is considered unearned regular income and is taxed at regular brackets. Would ...


2

Based on this report you are about $102,000 behind the median person in their forties just looking at college debt and retirement savings. That $102,000 is assuming that your college debt is $35,000 and the median 40s person has zero (probably not true?) and that you have $0 in retirement accounts and the median 40s person has $67,000. The following figure ...


3

I can't see you have the slightest problem. Starting at 40 with nothing is totally commonplace. I have started with absolutely nothing at least three times, both before and after that. Your issue is a non-issue. Regarding "Starting at 40 with nothing", I wouldn't be surprised if statistically that is the usual case in the USA. Note that you have a good ...


0

I would opt for ETFs as well. Harper explained it very well. There are many choices nowadays to choose from, probably more than index funds.


0

Usually, it's not a good idea as it will not only raise your debt to income ratios, but also impact your credit scores. However, if you have extensive credit history, having owned a home or two for a while (read: 10-20 years), taken out multiple auto loans in the past and paid them satisfactory, your credit score may not take a big hit. Possibly ust 5-10 ...


1

it seems you have 3 concerns: taxes. this shouldn't be a big deal, but might require some paperwork (especially if it is over 14k$). technically the irs would probably see this as a loan, not a gift, based on the step transaction doctrine. but that is not the kind of thing they would get worked up about. if you make your best guess regarding gift vs loan ...


-1

I can clear the Thailand side for you. These are the sale tax in Thailand: Transfer fees: 2% of the Registered Value of the Property Stamp Duty: 0.5% of the Registered Value, Only payable if you are Exempt from Business Tax Withholding Tax: 1% of the Land Department Appraisal Value of the Property Business Tax: 3.3% of the Land Department Appraisal Value ...


-1

first, well done with your economic situation being debt free. You are already on top most of the US household. Relocating is an excellent choice. I've done it for the last 10 years whenever new job offers permitted. My criteria were giving priority to the cost of living VS salary. For example; I was offered a salary of US$ 4.000 per month in Malaysia ...


-1

It would have to be made as a "gift", and then the return would be a "gift" back to you, because you're not allowed to use a loan for a down payment. I see some problems, but different ones than you do: Because you->them is recorded as gift, you don't have any claims when they refuse to pay you back. It's not evading taxes, it's creating taxes. If you ...


5

If you can separate the following two points, and live with them. I think you are good to go ahead. Otherwise I would seriously recommend you to reconsider. Your friend just asked you to give you money so they could buy their dreamhouse. Are you willing to give out this much money help a friend assuming that you will never get it back? This is what it ...


0

Your tax efficient reasoning is solid for where you want to distribute your assets. ETFs are often more tax efficient than their equivalent mutual funds but the exact differences would depend on the comparison between the fund and ETF you were considering. The one exception to this rule is Vanguard funds and ETFs which have the exact same tax-efficiency ...


0

You have options to at least get SOME retirement savings going. For one, if you have a retirement plan at work try to do as much as you can. You will probably say that you can't afford to do this and pay your bills, but I suspect that if you only do 1% to 3% of your income, you won't really miss it. Even more so with the tax deferment. If your employer ...


0

I can see why this situation can be tough to stomach at times; and this is exasperated by general retirement savings advice. There are a couple of things to consider. Over time you should be improving your resume and pressing your income upward. This will either change your repayment schedule or leave you with excess income such that you could start ...


2

With such an expensive education, the assumption would be that you by now are in a job that provides a corresponding income, which would allow you to make your payments and save a lot easily. If this is not the case, the visit of the expensive school might be considered a 'bad investment'. Sorry if that sounds harsh, but nobody said life is fair. However, ...


4

One possible downside is contribution limit. The 401K contribution limit is $18,000 for 2016, which is more than three times the limit for IRA contributions ($5,500).


2

It's called bartering and the IRS has a page titled Four Things to Know About Bartering. The summary is - Organized barter exchanges Barter income Tax implications of bartering How to report The bottom line is this is taxable.


3

If it was me, I would drop out. You can achieve a better kind of plan when there is no match. For example Fidelity has no fee accounts for IRAs and Roths with thousands of investment choices. You can also setup automatic drafts, so it simulates what happens with your 401K. Not an employee of Fidelity, just a happy customer. Some companies pass the 401K ...


3

Do Alice and Bob have to figure out the fair market value of their services and report that as income or something? Yes, exactly that. See Topic 420. Note that if the computer program is for Bob's business, Bob might be able to deduct it on his taxes. Similarly, if the remodeling is on Alice's business property, she might be able to deduct it. There ...


5

Adding to what others have said, if the mortgage for the new house is backed by the federal government (e.g., through FHA or is to be sold to Fannie Mae/Freddie Mac) you would be violating 18 USC § 1001, which makes making intentionally false statements to any agent or branch of the federal government a crime punishable by up to 5 years' imprisonment. The ...


32

It would have to be made as a "gift", and then the return would be a "gift" back to you, because you're not allowed to use a loan for a down payment. This is not to evade taxes. This is to evade a credit check. The problem is that banks don't like people to have too much debt. The bank could void the loan and go after your friends for damages under ...


6

Your Spidey senses are good. A good friend would not put you in such a position. It's simple, to skirt some issue (we'll get to that in a second) you are being asked to lie. All for a 15% return on your $$$$. <<< How much is that? You can easily lend him the money, and have a better paper trail. But the bank is not going to like that, and requires ...


-1

Whoa. These things are on two dimensions. It's like burger and fries, you can also have chicken sandwich and fries, or burger and onion rings. You can invest in an taxable brokerage account and/or an IRA. And then, within each of those... You can buy index funds and/or anything else. All 4 combinations are possible. If someone says otherwise, ...



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