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Rebalance is across asset-classes which are mutually independent [like stocks and bonds; they may be inversely correlated at times as when stocks go down, bonds go up] 80%-20% (stock-bond) split is good for a young investor [say in 30s, some suggest 110-age as a good stock allocation percentage]. Here rebalance is done when say the asset-allocation(AA) ...


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Yes, the annual contribution "limits" are effectively higher for Roth accounts than for the corresponding Traditional account, if that is what you are referring to, since the "nominal" limit is the same, but for Roth it's after-tax money, while for Traditional it's pre-tax money, which is equivalent to a lesser amount of after-tax money.


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So, lets get it straight. I'm using 2014 numbers and my Intuit tax software: Regular Income: 16150 Capital Gains: 20000 --------------------- AGI: 36150 --------------------- Deduction: 6200 Exemption: 3950 --------------------- Taxable Income: 26000 --------------------- Tax: 603 ACA Tax: 260 ...


4

GET A LAWYER. Doing business with relatives is business first, and some effort spent in setting things up and nailing down exactly what the financial relationships and obligations are beforehand can save a lot of agony and animosity later. Assuming it's a legal rental, you may be able to deduct business costs spent on maintaining the rental unit, but of ...


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You are "pool[ing] the sales from both houses as downpayment on the new house." But they are going to pay you rent. Your question as it stands, just opens more questions. What, exactly is the ownership of the new house? If your's (and your wife's) was the money a gift? Ignoring the gift, if that's what it is, and if the in-law suite is 25% of the house ...


2

I wrote the whimsically titled "The Density of Your IRA" to discuss this exact issue. In the 25% bracket, your pretax 401(k) would have $18,000, with a future tax due. But the Roth effectively took $24,000 in pretax dollars, and put the $18K in post tax money in the account. Since the limits are the same, the Roth is a denser account.


2

Is it correct that I could save my medical receipts for many years then claim them all at once in the future? Yes, that is correct. Save your receipts (or scan them and save the files). I'm doing the same. I pay my expenses out of pocket for now, and use the HSA as a tax-free investment vehicle for retirement. Once I'm retired, I expect to start ...


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Even assuming hypothetically that you are able to split money in different bank accounts to get full coverage and all your accounts are in top ranking financial institutions in USA, you can not rely on FDIC if all or most of those banks go broke. Because FDIC just has a meagre 25 billion dollars to cover all bank accounts in the USA. And you know the amount ...


2

With an appropriate selection within a 401K and if operating expenses are low, you get tax deferred savings and possibly a lower tax bracket for now. The returns vary of course with market fluctuations but for almost 3 years it has been double digit growth on average. Some health care sector funds were up over 40% last year. YMMV. With stocks and mutual ...


1

I looked into it. It would appear that if you're a permanent resident any time of the year - you're considered resident for tax purposes for that time. That would mean that you're required to file FBAR for the year if you're a permanent resident any time of the year, even if it is one single day. I do not have a definitive answer for your second part of the ...


6

Apples and oranges. The stock market requires a tiny bit of your time. Perhaps a lot if you are interested in individual stocks, and pouring through company annual reports, but close to none if you have a mix of super low cost ETFs or index fund. The real estate investing you propose is, at some point, a serious time commitment. Unless you use a ...


1

According to the IRS, there are 2 possibilities: 1) You can/do specify which shares were sold (i.e. "Sell the shares I bought at $200"). This needs to be done at the time of sale, and you need to receive confirmation. It sounds like you have missed the opportunity for this. 2) If you can't/don't specify which shares were sold, then it defaults to ...


2

If you intend to flip this property, you might consider either a construction loan or private money. A construction loan allows you to borrow from a bank against the value of the finished house a little at a time. As each stage of the construction/repairs are completed, the bank releases more funds to you. Interest accrues during the construction, but no ...


4

The federal government recently put out a number of rules and other guidance on how employers are and are not allowed to reimburse employees based on what benefits they are offered (see the FAQs available here , especially FAQ 22 and Technical Release 2013-03. Essentially, the government wants to prohibit employers from encouraging workers to decline ...


2

Let me restate question for clarity. Facts: Own home is foreign country. Bought home for $100,000 Doing a refinance with cash out ($50,000) option. Question: Are there any taxes for this transaction? Answer: No. It is not considered income until you sell and the sale price is greater than the purchase price.


6

Each stock you sell corresponds to a stock you bought. For each stock you bought - there's a price that you paid. If you bought 1 lot of 100 shares for $100 each, and another lot of 100 shares for $200 each - you don't have 200 shares at $150 each. No. What you have is 100 shares with $100 cost basis and 100 shares with $200 cost basis. The options you ...


6

Since I can't transfer/gift shares directly to my Roth IRA, what's the most tax-efficient way for my Roth IRA to take ownership of as many units of XYZ LP as possible? None. XYZ LP has some high fair market value so selling those shares directly to my Roth IRA seems incorrect. Also - illegal. I thought of incorporating an LLC ("MY-OWN ...


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Yes, you may dispute the transaction as you would any other. Contact your bank for their specific procedures.


1

I found the answer, which is, of course: "it depends." In general a professional appraisal is required for donation of non-liquid assets. However for assets with a defined market value there is usually just a small discount applied to the market price at transfer, something on the order of 5%.


1

I closed a checking account recently and was told by my banker that the bank will recognize that any check written on a closed account is fraudulent and will not accept the check. So while someone could possibly defraud a merchant, you would not be financially liable. My bank has a secure disposal process for those who are concerned, but shredding the ...


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This shows that in each market (US and Canada) the company is registered with the appropriate regulatory organization. OANDA is registered in the US with the National Futures Association which is a "self-regulatory organization for the U.S. derivatives industry". OANDA Canada is registered in Canada with IIROC which is the "Investment Industry Regulatory ...


0

If your primary concern is a drop in your credit score, go to a mortgage broker instead of multiple banks and finance companies. Each time you ask a bank or financial institution for a loan, they do a hard pull on your credit rating which costs you a couple of points. Visit a dozen lenders and you'll lose 24 points. You will also be signalling to lenders ...


0

Look at the offer carefully. If they are going to cut you a check and write off the car, they are buying your damaged car from you for $958. Look in the offer for a "shotgun clause". A shotgun clause allows you to reverse the offer and pay the insurance company $958 to buy the car in ts current state and fix it yourself without going through an insurance ...


1

I find comfort in putting them into the fireplace. For the truly paranoid, there's nothing like turning paper to ashes.


3

Unused checks can be discarded as soon as you no longer need them. No need to return them to the bank, just tear/shred and dispose of as paper.


2

I concur that you should probably go with option 1. And that is coming from a guy that refinanced all three of his properties with down to 20% equity 3 years ago to lock in either 4% 30 year fixed or 2.75% 15 year mortgage. And I will not pay them off early because I do think I can do better than that in the market even if inflation is 0% for the next 30 ...


4

Property for personal use cannot be sold at loss for tax purposes. I.e.: if the condo was the one you lived in, and not in investment/rental property, then that loss is useless for tax purposes and cannot offset any other gain or income. If the condo was a rental/investment, then the loss is considered capital loss and can offset capital gain. You can only ...


4

It depends on the State law, but in most sales tax is applied before any discount by the merchant, but after manufacturer's discount. However, Groupon voucher in this case is not a discount, it is a credit, i.e.: form of payment. It doesn't affect the price. Thus the sales tax would apply to the whole amount ($20) and added to the total bill. You should be ...


1

These deals do not account for tax, unless it's for an online purchase. e.g. a deal for a piece of tech hardware, shipped, would have to account for tax, if it applies. In this case, the restaurant would present you with the bill for $21.60, show the $20 credit, and expect you to pay $1.60 for the tax, and add a tip, based on the $20 worth of food you ate. ...


0

From India Tax point of view: Some one else may give the US tax treatment. Refer to this similar question what taxes I need to pay in India Capital Gains. My accountant never asked or reported the bought property in taxes- should he reported in taxes?Did he do wrong not reporting should I report the property in my next year taxes? If you mean ...


6

For Option 2 - do you really think you can guarantee an average return of 8% here. Historical returns are no guarantee of future returns. Even if you could get higher returns for option 2 than the interest rate on the mortgage, are you able to cover all the additional fees with the PMI in placing such a low down payment? The wiser choice in my opinion ...


8

There's nothing to rebalance, the index fund rebalances itself to continue matching the index. However, you need to understand that such an investment is not diversified and you only invest in a very specific market, and very specific stocks on that market. S&P 500 is large (500 different companies, most of the time), but still not as broadly ...


1

This should be covered in the text of your policy. Either an inflation adjustment is built into it, or not. If it is, your premiums will go up in parallel with the value insured. If not, the policy will lose real value until/unless you explicitly adjust it upward by submitting a new appraisal and having them adjust the insurance coverage and premium rate. ...


2

From Income Taxes And Your Social Security Benefits: I'd say "no", but you didn't mention if you had any other income.


0

You can have multiple $2500/yr contributions from multiple employers http://www.irs.gov/pub/irs-drop/n-12-40.pdf See bottom of page 5 through top of page 6 "However, an employee employed by two or more employers that are not members of the same controlled group may elect up to $2,500 (as indexed for inflation) under each employer’s health FSA. "


2

Once the payment is in your account, you'll have to contact the person that made it and ask them what to do. I've had a client pay me twice for the same invoice, and they simply said to keep it and apply the overpay as a credit to my next invoice. But the bank typically won't reverse the transaction (nor would the sender be able to have the bank reverse it ...


1

There's no reason for the employer not to deduct the whole amount before you leave. The FSA salary deduction has to be periodical, but it doesn't have to be calculated over a year. It just means that an equal amount will be deducted from your every paycheck, and if the employer (and you) know that your last paycheck is on June 30th even before the year ...


0

While you have found a way to possibly gain $1275 in tax free income, you are also risking $1275 if you end up not using the money you contributed. You will have to find a way to have that much in medical expenses by your retirement date or you will leave some money in the Flexible Spending Account. There are risks you take with these accounts (use it or ...


1

Many companies issue checks with "Not valid beyond 90 days" prominently printed on them. I don't know whether that's legally enforcable, but like "Unlawful to copy this key" for locksmiths it is a strong instruction to the banks that the "contract for payment" created by the check is not intended to be valid beyond that time. Not all locksmiths respect ...


3

It is up to you and your bank. See UCC Sec. 4-401: An item is properly payable if it is authorized by the customer and is in accordance with any agreement between the customer and bank. You need to talk to your bank about this, but generally banks protect themselves against various claims, including refusal to cash checks. Checks that you give are a ...


2

I found an article that discusses this subject. It seems that the length of time before a check expires depends on the state and the bank: Discussions about personal check expiration dates inevitably spiral into debates about the nuances of loan ethics. Although banking laws differ from state to state, most states consider that checks in excess of 6 ...


5

You pretended to be her. She was living in California. It sounds to me like she owes the tax. The way to "correct" it is to pay the tax.


0

My shares are deposited with my broker. My broker in turn seems to have deposited the shares with a U.S. broker. My broker replied that it is not possible to use the voting rights associated with foreign shares, including shares in United States companies. Is this legal? I note that United States law (http://www.law.cornell.edu/cfr/text/17/240.14b-1) ...


6

You were cheating on her SSN, which is simply incorrect. You were being paid from out of state, which is often complicated. Between the two, this is quite simply a mess. Hire an expert.


1

The only ways to increase your after-tax income are to increase your tax-deferred savings (401k), increase your tax deductions, or increase your pre-tax income. Increasing tax-deferred savings is great for the long term, but will usually not result in a bigger paycheck (though net pay including the savings will go up). This is, however, probably your best ...


1

Don't worry about minimizing taxes too much - worry about maximizing post-tax income. Keep in mind that if you just got a job then it's likely that the taxes being automatically withheld are based on the assumption you've been earning this much all year, which could mean that you're likely going to be due a refund come April (basically, if you're making ...


4

In practice, there are two main reasons to stick with the exchange: for many people it is cheaper (because of subsidies), and for most people it is simpler (because you can see many plans in one place in a standardized way instead of having to visit many different insurer websites). For most people, the biggest advantage of buying plans from the exchange is ...


2

There are some health care co-ops that qualify as alternatives to Obamacare. While technically not insurers, they are typically less expensive. You will want to look at ones with a very long track record.


1

Does that mean when I go to file my taxes for the 2014 tax year I can do so as a resident alien for tax purposes? Not only can you file as a resident -- you must file as a resident, because you are a resident alien for tax purposes for all of 2014. Time as a student is not exempt from the SPT if you have been exempt for any part of any 5 previous ...


5

They aren't actually. It appears to be a low interest rate, but it doesn't cover their true cost of capital. It is a sales tactic where they are raising the sticker price/principal of the car, which is subsidizing the true cost of the loan, likely 4% or higher. It would be hard to believe that the true cost of a car loan would be less than for a mortgage, ...



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