New answers tagged

0

First you have to consider "what does it mean for the dollar to lose value." When a dollar is "worth less;" worth less to whom? Are you seeking to mitigate the effects of general inflation? Are you genuinely worried about the collapse of the dollar. If so, collapse relative to what? A dollar, a euro, sand, oil, and gold are all commodities. I think the ...


0

The other answers have covered things well if we assume you are staying in the same general housing market. I don't think the following scenario is what you had in mind but it does describe one way that you can "upgrade" without incurring more debt. If you purchase a crummy little apartment in New York for $100k cash and are able to sell it for $300k later ...


0

I think you're missing the focus on "monthly payment" that most people have to some degree, aside from the fact that virtually no one will pay $100K in cash for a house... Take this more plausible scenario... A family buys a house for $165k, and puts 10% down. Their monthly payment on a 15yr mortgage is $1100. They pay on the house for 6 years, and their ...


1

I find this to be one of the mysteries of buying houses. Let me say that I find buying a house a poor choice for investment. That's just my opinion though and many will disagree. Just want to make that clear so you can pick out the bias. First you buy your 100k house and lets say you got "no down payment". Next you pay off the debt down to 50k. Now the ...


3

The fact that they "never saw" it happening doesn't mean it cannot happen. Transferring ownership to a LLC is transferring to a different legal entity (as opposed, for example, to putting your property into a living trust). Thus it is in fact a valid trigger to call on the loan for lenders. Whether they actually do it or not is up to them, but I wouldn't ...


2

I can make that election to pay taxes now (even though they aren't vested) based on the dollar value at the time they are granted? That is correct. You must file the election with the IRS within 30 days after the grant (and then attach a copy to that year's tax return). would I not pay any taxes on the gains because I already claimed them as income? ...


4

there are a lot of factors involved in your scenario, but basically you are right: the only way to "upgrade" your house, is to spend more money. more specifically, your scenario strongly reflects the interaction between 2 principles: inflation and debt. inflation drives up the nominal prices of everything. so most house prices go up, and most salaries go up ...


26

What you are missing is "leverage", which is the typical case for real estate purchases. Buyers usually only put a percentage of the cash down, not the whole amount. So instead you have something like this: Year 0: Buy $100,000 house for 10,000 down. $10,000 equity, $90,000 debt. Year 5: Sell house for $300,000. Even if the debt was not payed down and ...


0

The deadline for FBAR filing is June 30th, by that time the FBAR must be received by FinCEN. It is no longer filed by mail, but you still need to e-file it before June ends. So if you're using the streamlined procedure (i.e.: filing the current and all the delinquent), I don't think you can be late. For tax returns, the statute of limitations doesn't kick ...


2

For the first four months of the year, when you were an employee, the health insurance premiums were paid for with pre-tax money. When you receive your W-2 at the end of the year, the amount in Box 1 of the W-2 will be reduced by the amount you paid for health insurance. You can't deduct it on your tax return because it has already been deducted for you. ...


0

While COBRA premiums are not eligible to be a "business" expense they can be a medical expense for personal deduction purposes. If you're itemizing your deductions you may be able to deduct that way. However, you will only be able to deduct the portion of the premium that exceeds 10% of your AGI. Are you a full time employee now or are you a 1099 ...


2

Follow the guidelines from the IRS. It is very straight forward. The purpose of exempt is to make it more likely that somebody who in not going to have to pay doesn't have to file to get their withheld money back. If the situation changes because they work more hours, or they get a big raise just submit a new W-4. The biggest risk is that they go over the ...


1

Note you change it on the W-4. The key thing is to change it when you have changed the primary place you are living. When you start the process of getting mail changed, cars registered, and registering to vote you should also change the W-4. Because there will be a lag between when you submit it to your company and when it takes effect don't worry about ...


-2

In a system where electronic payment is well developed you can consider the following 2 scenarios: A person pays by cheque A person pays by card Now let us zoom in. 1. What happens when you pay by cheque A cheque is physically created, and arrives at your home The check is physically transferred to the seller The check is digitized for processing 2. ...


2

Car rental companies will offer to sell you short-term insurance (pai, cdw, etc.). Expensive per day, may not be unreasonable if you don't have other coverage


15

Check use is declining here too, but it still has some practical advantages over electronic means: It does not require the receiving party to provide any account number to the paying party (directly or indirectly). The receiving party does not even have to have a bank account at all, since a check can be cashed at the bank on which its drawn. The ...


5

In one of your comments you say: Even if the pharmacy is not in the insurance provider network? This is why you got the check instead of your insurance company. I have Blue Cross/Blue Shield, and recently my wife underwent a procedure in the hospital, where one of the physicians involved was not in my providers network. I got a letter from the ...


3

Because it makes money for all parties, and because the general public is reluctant to any change. people pay (sometimes) the bank to get checks printed people pay a store for envelopes people pay USPS for mailing the check people pay (sometimes) for depositing the check Who should have an interest to change that? People. And they have no say in it. You ...


1

Based on these dates in your question: Going back over my records, I was able to recall the following: I lived in Virginia and worked in DC from Jan. 2009 to Aug. 2009. I lived in Maryland and worked in DC from Aug. 2009 to Dec. 2009. I lived in Maryland and worked in DC from Jan. 2009 to Aug. 2010. You should have filed a part year in ...


1

Write VOID on the check in sharpie. Cut check down the middle. Return check to sender. Contact all parties telling them about the mistake.


1

If my wife were to receive an ITIN will she forever be obligated to file (or for me to include her in my filing) with the IRS? No. This mentions income which I generically assume to be salary from working. But what if she has investments, will those be protected from a US tax liability too? Whether she is required to file a US tax return ...


8

Option 4: Go talk with someone in person at an office of the Insurance company. They have helped me several times with things like this. They can get everyone involved on a conference call and make something happen. But you have to go in. Calling is a good way to waste time and get nowhere, they will throw the issue back and forth. Find an office and go. ...


5

Deposit check and send a personal check (resulting in tax and IRS reporting issues) That's a bad idea, unless maybe the check you're receiving is a certified bank draft. Suppose the insurance company are crooks and the check is fraudulent. It could take weeks or months for some investigation to catch up to that, long after your own personal check was ...


2

You mentioned depositing the check and then sending a personal check. Be sure to account for time, since any deposit over $10,000 the money will be made available in increments, so it may take 10-14 days to get the full amount in your account before you could send a personal check. I would not recommend this option regardless, but if you do, just a heads ...


6

So: The amount on the check is wrong The check was made out to the wrong party What you do: Take a picture of the check; front and back Let the pharmacy know what happened and that you are having the insurance company correct their mistake Contact the insurance company and tell (don't ask) them that you are sending the check back. Write VOID on it. ...


21

Checks are awesome things in that, even if it gets lost the money doesn't change hands until the check is cashed. I would highly recommend NOT signing a check over and putting it in the mail though. Essentially putting your signature on it is saying yes, pay to whomever. Theoretically acceptable, rarely a good idea. Call the insurance company and have them ...


118

The insurance company issued the check. I'd contact the insurance company to have the current check voided and a new one issued to the pharmacy.


3

In my experience, there is one aspect of HSA's that people often overlook. In an HSA you will not have "nice" copays nor will co-insurance kick in until you have met the deductible (always double-check the summary of benefits, but this is a defining characteristic of HSA plans). This first-dollar responsibility is something shared by all HSAs (US gov't ...


0

Yes, it should be. As, where one has insurance, its an expense one would expect one to continue to incur in a normal budgetary emergency, even drop in the extreme.


4

You got it right. The broker doesn't know you didn't deduct the deposit, so you'll indicate that on your return and only have tax on the $500. Note - the above is correct absent any other IRA funds. But, as Dilip noted, I should have clarified, if you had any prior year IRA deposits which were pre-tax, this conversion would need to take that into account. ...


4

Long-term capital gains, as you note, get special tax treatment. They are lower than regular income tax rates. Short-term capital gains aren't penalized, they are just treated as regular income under the regular rates. So, from a tax perspective, the day-trader gets by the same way as the rest of us because they are paying the same rates on the same ...


-1

I would be curious how he balanced having two female life partners at once. Not sure I would ask that at the shareholder meeting though ;)


2

As long as the tax rate is below 100%, there is still money to make. You pay taxes on your gain, not on your trading volume. Taxed income is still income - many people seem to get that wrong.


6

I would say it's all relative. Take the following two scenarios: I'm a daytrader and I can make $1,000,000 a year with my aggressive trading, but I have to pay a 35% tax rate. My remaining profit is $650,000. I'm a long-term trader and I can make $500,000 a year with less frequent trading. My tax rate is 20%. My remaining profit is $400,000. If you were ...


3

I have always found that the "free" planers are just salesmen pointing you in their best interests. Not that it won't get you a good deal in the processes, but, in my experience, they usually just recommend products that give them the best commission, finders fee, kickback, whatever. Flat fee financial planers are not really to my liking either. This is a ...


5

For whatever it's worth, when I went to the meeting a couple of years ago, the question and answer segment is mostly students asking how to pick a stock or what book they should read. I'm sure someone else will ask but it would be interesting to hear their take on the Syrian refugee situation in Europe and how it may impact the EU in general. Or how ...


13

The risk is that the "free" service may be supporting itself by steering customers to products which part a sales commission, or that are products of the company/bank that employees then, rather than those which are actually best for the customer. If you go in with a skeptical outlook, watching for this sort of conflict of interest, it's possible they ...


6

There is no free lunch. "Free" can cost you a small fortune over time. If you wish to sit through a free pitch you may as well go to a time share seminar. Just keep your hands in your pocket and don't sign anything. In the end, you will be best served spending the time it will take to learn to manage your own money. Short term, spend a few hundred ...


1

what you aim to do is a great idea and it will work in your favor for a number of reasons. First, paying down your loan early will save you lots in interest, no brainer. Second, keeping the account open will improve your credit score by 1) increases the number of installment trade lines you have open, 2)adds to your positive payment history and 3) varies ...


1

The guideline for the size of an emergency fund is just a guideline. I've usually heard it expressed as "3 to 6 months," but everyone has a different idea of exactly how big it should be. The purpose of the fund is to give you enough cash to be able to pay for unexpected expenses that have come up that you have not budgeted for without you having to borrow ...


4

Yes, you should budget some amount of your emergency fund for healthcare expenses. How much you budget is really dependent on your particular anticipated costs. Be aware that health insurance likely costs significantly more than your employer charges you for access to its plan. Since healthcare reform mandated guaranteed issue individual coverage you will ...


0

Yes factor into your fund the cost of health insurance. You basically have three options when facing a loss of income for 3-6 months: Affordable Care Act (ACA) Non-ACA plans COBRA plans equal to what you had under your employer but at full cost. Pre-ACA the COBRA one was the default option many planned for because there was no need to change doctors. ...


0

Seconding @petebelford's comment: if you are looking to save money, considerr taking the middleman out of the equation and buying directly from a car's previous owner. Even after paying a mechanic to inspect it for you, this is likely to be cheaper.


3

It's fairly complicated, but the answer is that you won't pay US tax for selling a common stock when you're a non-resident for tax purposes, so long as it's not tied to a business you have based in the US, and as long as you're not here for 183 days or more in the past three tax years plus 31 days in the current tax year. You also have to not have a valid ...


4

The amount you are earning in the savings account is insignificant, since you would only have the money in the account for 1 month after purchasing the car. The instant 1.5% cashback (or travel mile reward), on the other hand, can be significant. However, it is not normal for a car dealership to allow you to put $16k on a credit card. The reason is that ...


2

This FBAR document suggests: which eventually leads to here which has the historical rates here.


0

Without access to the ATM/debit card and with almost nothing in savings, you will probably have to visit a branch to make a cash deposit. If it is too far to drive you might be able to turn the cash into a money order and mail it to the bank, but I would check with the bank to see if that would work. Of course mail will take a day or two.


0

Not a financially sound decision in my humble opinion. Basically, you are prepaying your taxes and the only reason you want to do that is if you don't have the discipine to save that money for when it is time to pay next year (assuming you will have to).


1

If your refund is so small (like $20 - $25), and it's not worth receiving, it can be put towards next years just to give you a slight edge.


2

No, you will not have to pay taxes on the corpus (principal) of the trust distribution. If the trust tax forms were filed correctly, you might have as much as a $9000 loss that will flow to you on the trust's termination. Previously, the trust was supposed to file a return each year, and either claim the dividends or realized cap gains each year, and pay ...



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