45

It sounds like THEY don't think the debt is valid and want to validate it by getting you to claim it is. It might be worth sending them a letter asking them to prove the debt is yours or remove it. This is all credit repair companies do. If they can't find proof then they have to remove it from your report. Paying the debt after claiming it is valid is not ...


33

US centric answer: An all-cash deal is a sale so there is no way to avoid taxes when there's a cash buy out of a position in a non-sheltered account.


15

You should not mark "exempt" if you're not exempt, which you're not. You can reduce your withholdings using deductions count. The higher deduction the less the withholding, and depending on your salary you may end up with 0 withholding if the deduction is high enough to justify that. You can use the IRS withholding estimator to calculate how to ...


12

Yes, it is possible to have $0 in federal income tax withheld from your paycheck. The W-4 form was revamped in 2020 to be more accurate, straightforward and easier to use. Under the old form, you really had only one tool to reduce your withholding: You could increase your claimed number of exemptions, which didn’t have to match reality, but it was very ...


8

It is entirely possible that you had no FICA taxes withheld while you were a graduate student on stipend. There is a Student Exception to the FICA tax that may have applied to you. Your 1040 tax return from those years would not show whether or not you paid FICA, as that tax does not appear on the 1040. However, if you have W-2 or paystubs from those years, ...


5

You can't borrow from a Traditional IRA. If you pledge your IRA as collateral for a loan it is treated as a disbursement and subject to taxes (and penalties). You can borrow from a 401(k) (if your company allows it) but you lose out on the future growth of the amount you borrowed. The hope is that the market grows at a lower rate than the rate you pay in ...


4

The easiest way to do move money from one IRA account to another IRA account is by a trustee-to-trustee transfer where the money goes directly from one custodian (New York Life in this case) to the other custodian (Fidelity in this case). The easiest way of accomplishing this is to call Fidelity or go online on their website, tell them that you are wanting ...


4

You should to talk to both. The receiving company will be happy to get your money. The sending company will wish you weren't leaving. The methods they use might clash. While a seamless electronic transfer would be ideal, what you want to avoid is them sending you a check made out to you. If they have to do it by check the receiving company will tell you who ...


4

You need to quote from the document. At the end of 2020, Vanguard reduced the minimum investment in its institutional Target Retirement funds to $5 million from $100 million. That set off an elephant stampede, as multimillion-dollar corporate retirement plans got out of the standard target funds and into the institutional equivalents. (Clients have to sell ...


4

The accepted answer is right, in that a cash acquisition is in effect a forced sale for cash, so gains are realized and recognized and hence taxable. But if you really want to defer paying taxes on the gain, there are options. For example qualified opportunity funds, discussed by IRS here and Kiplinger here. Note that you much be a qualified investor. I ...


4

Deductions to your taxable income reduce your tax owed at your marginal tax rate. So yes, a deduction with a 50k taxable income (after all other deductions) reduces your tax more than a deduction with a 5k taxable income because they are in different tax brackets. But, depending on the nature of the deduction, if you have no taxable income to reduce, you can ...


3

Fair Market Value. Basically, the amount of money the charity would have spent had they bought a similar product on eBay. For audit purposes you'll probably want to keep both the documentation of the donation that describes the machine, and some screenshots of comparable sales that you used to determine the FMV.


2

Yes, it is perfectly legal to have no withholdings You can mark "Exempt" on your HR form at your job and they will not withhold anything. Should you - probably not. The IRS will still know you owe taxes. The government makes it very easy and straightforward to pay your taxes. Most Americans couldn't cover a $1000 emergency. Your taxes are ...


2

No, it would not trigger a wash sale even if you bought the next day. Step 3 was already a wash sale, but it only matters if you hold the stock past the end of the year. If you sell the rest of the stock this year, all transactions are within the same tax year so the wash sale has no effect. If you hold past the end of the year, the wash sale rule just ...


2

If you realize a loss, you’ll have a wash sale you'll have to defer the loss if you acquire substantially identical stock within the 61-day wash sale period consisting of the day of the sale, the 30 days before the sale and the 30 days after the sale. Your purchase of shares in 'Step 2' triggered a wash sale because it was within the 61 day window before/...


2

You have asked a rather long and complex question. The only time you have to worry about gift tax is if there is a completed gift. Hence, if you put money into a revocable trust for your child there is no gift tax. However, if you put money into a irrevocable trust for your child then there could be gift tax issues. If you give somebody a gift of $1 and it ...


2

I have been through a situation similar to yours. My former employer switch custodians a couple of year after I left, and they also made a change to the vesting schedule. I was keeping the money in the 401(k) because if I returned within 5 years I wouldn't lose the 40% of their contributions that weren't vested. Perhaps changing their investment company ...


1

Transferring money to someone doesn't in itself make it their money. For that, a legal act needs to happen at the same time. This can either be payment to discharge an obligation, or gifting the money. We rarely pay attention to this, because it is generally clearly implied by the context what is happening. If you simultaneously claim that you do not owe ...


1

It is a mix of different factors. The typical ETF tracks an index while most mutual funds are actively managed. A high turnover rate will generate lots of taxable events The creation-redemption-process is an exchange of assets and tax advantaged Changes to the index are often not made by buying and selling the underlying stock but by heartbeat trades which ...


1

The United States has "Tax Treaties" with quite a few foreign nations. The purpose of these treaties are to ensure citizens or residents of a country do not pay both US taxes and the taxes of their country of residence. It also outlines rules that prevents US citizens or residents from evading US taxes. There is more information and a list of ...


1

An equivalent of 'Total Stock Market' index in India would be 'Nifty 500'. It represents 97% of all stocks listed on NSE. Unlike S&P 500, which is solely composed of large-cap stocks, due to India's relatively smaller market size, Nifty 500 includes companies of all sizes - large-cap (76%), mid-cap (18%) and small-cap (6%). The only thing you miss is ...


1

If we just reframe the context of the IRS Ruling, my interpretation is that: GDRs including Crest Depository Interest (CDI) constitute shares of stock issued by a US domestic corporation and, therefore, are property within the United States under §2104(a). GDRs including CDI are certificates evidencing ownership of the underlying US domestic corporation. . ...


1

Certain deceased nonresidents who were not citizens of the United States are subject to U.S. estate taxation with respect to their U.S.-situated assets. For estate tax purposes, a citizen of a U.S. possession is not a U.S. citizen. U.S.-situated assets that are subject to estate tax include, for example: Real estate located in the U.S., Tangible personal ...


1

The United Kingdom is one of 15 rare countries who has Estate or Gift Tax Treaty with the United States. The full text is here: https://www.legislation.gov.uk/uksi/1979/1454/made/data.pdf Article 8(5) Where property may be taxed in the United States on the death of a United Kingdom national who was neither domiciled in nor a national of the United States ...


1

There are a number of kinds of ETFs. The large majority of them are open end grantor trusts which are pass-through entities and their distributions are non-qualified and are taxed as ordinary income. Qualified dividends are taxed at the long-term capital gains rate. The short answer is that it depends on the nature of the distribution. As for you example ...


1

In general a deduction is only good if you are itemizing, unless it is a deduction that you are allowed to take even if you take the standard deduction. Items that fall into this category are a $250 teacher deduct om for supplies, and the $300/$600 charitable donation since 2020. Assuming you can see the impact of the deduction on your tax forms then the ...


1

UTP Tape C (the NBBO quote) and UTP (the listing privilege) are two different things. For example, a stock with primary listing at NYSE has the UTP (the privilege) to list at NASDAQ at the same time, but it doesn't mean that the NBBO quote of that stock is published in UTP Tape C. The bottom line is that UTC Tape C provides the NBBO quotes for all NASDAQ ...


1

Even if you DO have taxable income, a Write-off (Deduction type) may not even help you unless your total deductions exceed the Standard deduction. If $1000 was the total amount of itemized deductions you had, you'd be better off not even claiming it and just taking the standard deduction which is $12,550 as of 2021 Note: A "Write-off" has a ...


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