Questions tagged [united-states]

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

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1answer
148 views

Buying QQQ vs QQQM

Recently there is a new ETF to track the Nasdaq 100. Its symbol is QQQM. It is very similar to QQQ and it has lower expense ratio. I understand that QQQ is better known and has a smaller spread ...
3
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4answers
112 views

Can Stock Brokers trade against you when they are holding two orders on opposite sides of the market?

Imagine that the XYX (not a real name) stock has a bid of 50.05 and an ask of 50.12. A discount broker currently has two orders. One is a limit buy at 50.11 and the other is a limit sell at 50.06. Can ...
3
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0answers
40 views

Is there any program American can take advantage of to help offset childcare costs during Covid-19?

Due to Covid-19, my son's schools have been shut down for most of the year. Though my workplace allows parents to bring their children to work, he is special needs/has a disability, so requires much ...
4
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3answers
779 views

Moved partway through 2020, filing taxes in both states?

I got a job in Maryland (starting june 2020) and moved to the state after graduation in May. However I was still “officially” a resident of Michigan until the end of August (that is, i got my drivers ...
5
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4answers
654 views

Closing stock position on Dec 30

When closing a stock position on Dec 30, 2020, with T+2 settlement, is the P&L booked for 2020 or 2021? TIA.
20
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5answers
7k views

Why don't most people file Chapter 7 every 8 years?

Please explain to me why more people don't follow a formula like this: Converting all their assets into exempted assets (for which there are tons of options, regardless of your state -- ERISA-...
1
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1answer
55 views

How is income tax residency determined for person staying in multiple jurisdictions in a year

Suppose I stayed in multiple countries in a year for significant durations ( say 3 months each in 4 nations) and further assume that double taxation avoidance treaties are in place so how does one ...
0
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1answer
60 views

How are stocks less than $1 able to trade on NYSE for more than 6 months?

Stocks like Oragenics (NYSE:OGEN) has been trading below $1 for more than 6 months now. I’m curious as to why they have not yet been delisted? Doesn’t the NYSE require stocks to be traded over $1, and ...
2
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1answer
182 views

Do I have to pay taxes on my capital gains when they're still less than my carryover capital losses?

I am based in the US. Let's say that in 2019 I bought some stocks and sold them in 2019 for a loss of $20k. So in each year starting from 2020, I am able to deduct $3k from my taxable income until all ...
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1answer
41 views

Covered call buy back

I sold a covered call for $1000. If I buy it back for $5000 before the expiration date, will the $4000 considered a short term loss and will it offset my short term gain and long term gain? I do not ...
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0answers
41 views

When two financial institutions merge, when is the SIPC protection for an individual owning a brokerage account in both places reduced?

For example, as a result of the $22 billion Schwab-TD Ameritrade merger (mirror), when will the SIPC protection for an individual owning a Schwab and a TD Ameritrade brokerage accounts be reduced to ...
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0answers
71 views

Should I sell cryptocurrency towards the year end?

I live in USA. I had a loss of X amount of money a few years back in Cryptocurrencies. From that year on, I am seeing some Y amount of capital loss carryover in my yearly returns. I haven't done any ...
2
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1answer
73 views

Checking one's status with the IRS

I'm not American. I was a resident alien and worked legally for 9 weeks in the US a few years ago. I received a US SSN. The job turned bad and I went back to Canada. I never filled a US tax form, but ...
4
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0answers
52 views

With 40 credits, can I still be eligible to receive social security benefits at age 67 IF I LOSE MY permanent resident status?

I know there are similar questions here, but my case is a bit special so I ask this question. I have been working in the U.S. for 10 years and accumulated 40 social security credits. Now, I and my ...
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2answers
50 views

Transfer money out of IRA using stock options?

Is there a stock option strategy that allows one to transfer money out of an IRA brokerage account into a non-IRA brokerage account without incurring penalty?
2
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2answers
54 views

Can I swap personal and 401k assets?

Is it possible to swap assets between personal accounts and retirement accounts? Say I have $100 worth of one fund in my 401k, and I think that fund is better as a short-term investment, and I also ...
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3answers
62 views

What tax benefits do people gain from donating to 501(c)(3)s?

Isn't the tax system progressive, so that your first (rough numbers from memory most likely inaccurate) say, $12000 gets taxed at X%, while your next, say, $8000 gets taxed at Y% (Y>X), and your ...
1
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1answer
29 views

Are postmark dates applicable for repayments as per IRS publication 525?

If I owe my employer repayment of benefits such as relocation/sign on bonus that occur in a single calendar year (say $10k signing bonus paid in March 2020) - if I mail a check in to repay the ...
3
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2answers
121 views

Why are ACH transfers typically free, while wire transfers cost money?

I read on finance.umich.edu: A wire is a real-time method of transferring immediate funds and supporting information between two financial institutions and is relatively expensive to use. An ACH is ...
-1
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1answer
37 views

Does income from selling long term stocks fall under regular income tax bracket or capital income tax bracket?

If both brackets are the same, please let me know. I plan to sell some of my long term stocks and want to make an informed decision. My understanding of regular income tax is that it includes salary, ...
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0answers
39 views

Can I use transferwise business instead of a traditional bank account for my business?

I have a transferwise business account and it provides me with the banking information I need to receive electronic payments from my customers (routing, number, IBAN etc...). Can this be my "...
1
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1answer
68 views

Can I fund my non profit from my income for tax credits?

Can I get tax credits or any benefits of transferring my income to non profit 501(c)(3) for social causes? The problem is I'm not getting any funds from outside sources at the moment so I have to ...
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2answers
88 views

Capital gains tax when selling an investment for bitcoin?

I saw this question. Let's suppose one sells an asset for a $200,000 profit after holding it for 10 year but then immediately sinks the entire sale price into another asset. Is one still expected to ...
3
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1answer
68 views

Does traveling one day a week to an alternate facility count as a normal commute?

The IRS is clear that your normal commute from home to your usual office is not tax-deductible. But let's say, once every week, I have have to travel directly to an alternate office, start my workday ...
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1answer
44 views

Do I have to invest my Solo 401k contributions to take advantage of tax deferral

Is simply contributing to my solo 401k account and keeping it in cash balance enough to take advantage of tax deferral, or do the funds need to be invested?
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0answers
45 views

How can I transfer money from a US bank account to an IBAN+BIC number (European bank account) without any fees?

I have a bank account in the US and a bank account in Lithuania. The latter is identified with an IBAN and a BIC. How can I transfer money from my US bank account to an IBAN+BIC number without any ...
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2answers
47 views

What to ask for to determine percent of startup I have shares in?

I work at a pre-launch tech startup and we agreed that I'd receive 2% equity. When I signed paperwork for the shares, there was nothing indicating what % I signed at, just the number of shares. I ...
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0answers
15 views

Schedule E vs Schedule C

I purchased (with a mortgage) a mixed-use building with an LLC in 2019. I rent the two retail/commercial units to two LLC businesses (one owned by me, and one owned by my wife). This building also has ...
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2answers
78 views

Some questions about buying bonds

If this is a $1000 bond, do I pay somewhere between $1,000 * 103% = $1,030 and $1,000 * 104.061% = $1040.61? But 4.5%/103 = 4.37%, and 4.5%/104.061 = 4.32%, not 4.116% or 4.123% Do I get $45 every ...
16
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4answers
4k views

Do I have to pay capital gains tax if proceeds were immediately used for another investment?

Let's suppose one sells an asset for a $200,000 profit after holding it for 10 year but then immediately sinks the entire sale price into another asset. Is one still expected to pay the capital gains ...
4
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2answers
94 views

Tax Return: How to account for money that was paid to you in a year (e.g., 2020) and that you paid back next year (e.g., 2021) in your tax return?

I was paid $1,000 by company X as part of a contract in 2020. I am deciding to cancel the contract and have to pay back $1,000. What happens if I pay back this amount in 2021? The company will issue ...
21
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4answers
4k views

Why is so much focus put on the Dow Jones Industrial Average?

The Dow Jones Industrial Average is derived from the sum of the stock prices of 30 large-cap companies, divided by the Dow Divisor which, at the moment is actually a multiplier. It's mostly NYSE ...
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1answer
50 views

Backdoor Roth IRA conversion while owning SEP-IRA as well

I have a SEP-IRA from my consulting years, many years ago (I haven't contributed to it in years but it does have a balance). I wanted to setup a backdoor Roth IRA conversion by creating Traditional ...
33
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12answers
9k views

Case against home ownership? High income, no home, don't necessarily want one

All numbers are in USD and my tax situation pertains to US taxes. I am at a crossroads and am seeking help. I am a single man who has always made a good living and generally enjoy my life as I please. ...
1
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1answer
100 views

Is there a rule of thumb for 'safe' margin percentage?

I have read rules of the thumb on [sources] that may say things like "don't put more than 20% of your holdings into one stock", etc etc... Is there a similar safe-side rule of thumb for ...
3
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0answers
79 views

What are the tax implications for my family if someone from China deposits $50k into their account and they transfer to my U.S. account

I have a Chinese wife and we live in China. She inherited a house and money and we are moving to the United States. We have started transferring large amounts into my personal account in America with ...
3
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1answer
58 views

TIAA-CREF mailed me check — how do I roll this over into a Vanguard IRA?

I had $500 sitting in a TIAA-CREF account from over a decade ago. They liquidated all their older assets under $5K and mailed me a check for $400, deducting 20% for federal income tax. Can I roll this ...
39
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2answers
5k views

House lost in fire.. tax impact?

Like hundreds of others, I lost my house (primary residence) during the Oregon wildfires in September. I had purchased it just two years ago, so still have ~$210,000 on the mortgage. My homeowners ...
5
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2answers
302 views

What is the soonest that major US federal income tax law changes normally take effect?

If the US Congress passes major changes to federal income tax laws, such as new income tax rates, what is the soonest that those changes would normally take effect? Would it be the same year, if ...
3
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1answer
64 views

Deducting Federal Income Tax from State Income Tax Liability

Context: I am calculating what my taxes will be next year (2021) for purposes of filling out my W-4s such that my withholdings will be as close to my actual tax liability as possible, to minimize my ...
1
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0answers
44 views

Do I need to report contributions to a Solo Roth 401(K) plan every year?

I am self employed. I recently shutdown my individual 401(K) plan at E*Trade. There was also a Roth 401(K) plan also. I am not sure if it is one plan or two. I have been told by somebody at E*Trade ...
6
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2answers
100 views

How does one spouse being highly compensated affect family FSA limits?

If one spouse is considered a Highly Compensated Employee (HCE) (and has dependent care FSA contributions capped), and the other spouse (who works at a different company) is not, is the dependent care ...
1
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2answers
136 views

How long after being denied for a credit card should I wait to apply again?

I live in the US since November 2019 and have been an authorized user on my partner's credit card since then, which resulted in a credit score of 787. I opened my own bank account in October 2020 with ...
3
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1answer
64 views

Does selling an OTM covered call affect the holding period of the underlying stock?

Given the following, ignoring commission, etc.: On 2019-03-16, XYZ is trading for $100.00. I purchase 1000 shares, for a cost of $100,000.00. On 2019-09-15, XYZ is trading for $150.00. I sell 10 XYZ $...
2
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0answers
51 views

European consultant: living and working in the USA, employed in Canada

I am from Europe and a consultant employed by a Canadian University, but I live in the USA (I moved to the USA as my husband received a J1 visa). So now I am trying to figure out where to pay taxed? ...
3
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2answers
96 views

Does a rollover from RMD to Roth get taxed twice?

I am 79 years old, and this year might roll over money from a traditional IRA into a Roth account. I have not done this before. Will I get taxed twice on the money, once for taking it out of the ...
29
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5answers
12k views

Should tenants pay for repairs if it's their fault?

Say a tenant accidentally flushed a hard object down the toilet, is it better for the tenant to take care of the plumber bill or call the landlord? Would this be good grounds for a rental raise in ...
0
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4answers
178 views

Why can't you get a loan against your IRA?

I'm trying to borrow against my IRA but for personal reasons rather than one of the 8-9 approved reasons. Does anyone know why it's prohibited? Is there any way around this?
0
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1answer
93 views

What are the penalties for mistakes in form 5500EZ

I recently shutdown my solo 401K Plan and solo Roth 401K plan. I have filled out form 5500ez but have not yet sent it in to the IRS. I understand there are very serious penalties for filing late. What ...
2
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1answer
457 views

Determining cost basis in a SPAC unit split into stock and warrants

I bought 400 shares of IPOB.U at $11.84/unit. Each unit can be split into 1 share + 1/3 warrant when the holder desires (after the stock and warrants start trading freely, but not before.) I called my ...