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CoronitaParticipant[quote=FlyerInHi][quote=flu][quote=FlyerInHi]Yes, but you’re getting reimbursed by the parents in cash. So you’re not paying for education.[/quote]
I am certainly not getting reimbursed for the tuition.
[/quote]You linked the transactions in your first post.
Like I said, you may not be found out. But we all know your tax avoidance strategy. Yes, you’re so smart![/quote]
Are you referring to tax avoidance or tax evasion? the past couple of times you admitted to not paying sales tax. that’s tax evasion.
CoronitaParticipant[quote=FlyerInHi]Yes, but you’re getting reimbursed by the parents in cash. So you’re not paying for education.[/quote]
I am certainly not getting reimbursed for the tuition.
They are gifting me back simply because they love me.
And there’s nothing that says they can’t setup their own 529 plan and end up paying for my kids education out of it. The difference is that they have no capital gains right now because they are just starting out…
So they can accumulate their capital gains and use that toward my kids college while my 529k with capital gains can be used right away. And there’s nothing saying they need to gift me back in the exact same year the exact same amount…and there’s no need for a justification for the gift…as long as it’s below the gift tax exclusion threshold…. so there…Nice try throwing around fake terms for fake things that is already legally defined in our tax codes.
CoronitaParticipant[quote=FlyerInHi][quote=flu] Doubled my contribution to the 529k…..next year, will start taking capital gains distributions from it tax free to pay for a nieceand nephew private K and 1st grade school
tax free……their parents will each gift me back the money in cash. rinse and repeat each year …..better than investing in my own accounts and having to pay capital gains taxes in it…pretty much the same funds in 529k and my own vanguard after tax account. That $20k in distribution starting next year out of 529k for private k-12 will end up being close to $240k tax free distribution that moves that earned money back out, provided the new tax laws don’t change over the next 12 years. the theoretical limit of each 529k account is slightly over $500k… heh heh[/quote]Isn’t that illegal. You may not be found out by the IRS. But you know what you did.[/quote]
Nope. Clearly you don’t understand the the tax codes concerning 529k plans that have always existed and clearly you don’t understand the trump/Republican tax reform changes.
You can always open a 529k plan for anyone in your family including yourself and any relative related to you. And you can always change the beneficiary of the 529k plan to anyone subject to the gift tax exclusion. This has existed since the beginning of 529k. This is why if you have a large 529k for one kid and it doesn’t end up used completely, you can designate a new beneficiary… You can even rollover portions part of the money from one 529k to another 529k slowly so that you are well below the gift tax exclusion allowed per person per year. This is all in publication by the IRS. None of this has changed.
(This was one of the sore spots that the Obama administration wanted to go after to pay for The American Opportunity Tax Credit because a tiny percentage of the population that was using the 529k is wealthy and was using the 529k plan to shelter money used for a lot of kids and relatives for generations. However, the vast majority of the people with 529k were just normal middle class and upper middle class , hence why there was such a backlash and why that administration ended up undoing it. )Now theoretically , before you only could use the 529k towards college tuition.. 4 years and maybe graduate school…financially there was a upper limit on how much you wanted to put into a 529k since it could only be used for college tuition and if you contributed too much , you might be in for penalty when you had to take money back out….
BUT…thanks the Trump/Republican tax reform , the 529k can now be used to pay for private K-12 school for any relative… This was done arguably to union bust and give the finger to public schools since it would encourage more people with more money to put their kids into private schools and to give all those wealthy families that send their kids to private prep schools a huge tax break. But what’s even cooler is you don’t need to be ridiculously wealthy to benefit from this new tax law change… As all you are doing is using the existing (updated) 529k tax rules to allow you to legally pay for any “family” college and now K-12 education and the existing $15k per year per person gift tax exclusion.
And the maximum amount you can contribute to the 529k plan is set by the state adminstered plans, not the IRS. California’s ScholarShare plan cap is slightly above $520k.
.versus Nevadas vanguard plan cap is at $450k.CoronitaParticipanthave to admit that the folks that recommended a slow drip into index funds over time has been good. I am quite surprised that the s&p500 YTD is close to 17%…. I dont do much these days, as I am trying to significantly reduce my risk exposure , besides letting auto investments get auto deducted into a 401k, 529k, and after tax vanguard index account….seems like boring has saves my butt once again versus trying to guess which way to go. Doubled my contribution to the 529k…..next year, will start taking capital gains distributions from it tax free to pay for a nieceand nephew private K and 1st grade school
tax free……their parents will each gift me back the money in cash. rinse and repeat each year …..better than investing in my own accounts and having to pay capital gains taxes in it…pretty much the same funds in 529k and my own vanguard after tax account. That $20k in distribution starting next year out of 529k for private k-12 will end up being close to $240k tax free distribution that moves that earned money back out, provided the new tax laws don’t change over the next 12 years. the theoretical limit of each 529k account is slightly over $500k… heh hehCoronitaParticipantthe markets can stay irrational longer than you can stay financially solvent. I would never do a naked short. I hope you have at least some call options as a hedge.
CoronitaParticipantDo people really feel cashing out and trying to time the market really works for the long run. It seems to go against the grain of portfolio theory and indexing….
I can see if folks want to nudge between cash and investments percentages , but to entirely cash out?
CoronitaParticipant[quote=scaredyclassic]maybe im getting old and conservative but the dem. cries to just wipe the slate clean with no systemic change are so dumb i could vote republican[/quote]
I think it’s pretty much guaranteed Trump will win his second term.
Democrats are too busy trying make everyone a victim and trying to give our free money at the cost of others that work…. The economy won’t tank enough before 2020 to motivate people to pick someone else…
CoronitaParticipantFresh from Intel’s internal blogs….lol…
CoronitaParticipantCliff notes version: “I think we should do something about rent control for old people that have very little options…. But everyone else OTHER THAN ME should do something… I’m going to buy and evict an old person so I can increase my profits, and for me earning money is way more important than my ideology I preach…..Not my problem…By the way, I’m an elitist and I am refined. I think richer people should pay more taxes for the poor. Everyone…but me…But now that I’ve proudly threw someone out on the street, I’m going to get on piggington and brag about how I threw someone out onto the street….”
CoronitaParticipant… looks like the far left have fallen off a cliff….The country is run by fridgy people on both extremes… lol …
CoronitaParticipant[quote=AN][quote=The-Shoveler]AN do you know what the rent is there?
If it is in line and not completely outrages for the area it could explain why.
if it is 3X times average rent for the area (or something close) then it would boggle my mind why anyone would rent there but whatever they want.
We have a recent grad driving a new Porsche working here, not something I did first starting out but maybe he has more passion for driving than I did LOL[/quote]
It’s about $200-300/month more. Definitely not outrageous. If you like new places and the amenities, then you can easily justify the $200-300/month more. That comes out to about 5-15% more that older condo/apartments.[/quote]Really? if that’s the case then did they lower their prices???… I recall they we’re closer to around +$4-500 for a 1/1, at least that was what they use to list it at.. either that , or the privates has been jacking up the rent so the difference is not that great. most of the H1Bs that I spoke to didn’t want to rent their because they considered it way more expensive. But then again, there wasn’t much supply either in the private sector… ok, maybe times have changed.
CoronitaParticipant[quote=AN][quote=flu][quote=AN][quote=flu]yup…. I was saying just putting a complex that looks like high end with high end prices isn’t going to work ….[/quote]Why do you think it doesn’t work? Several of my millennial coworkers are either living there or will be living there soon.[/quote]
it won’t work for the demographics that Brian mentioned … It might work for other demographics. But then it also depends on how much over average rent is[/quote]
What demographic are you referring to? The few people I know that either lived there, living there, or will be living there soon are all young Asian engineers[/quote]specifically, as Brian mentioned, first generation from China or India, the type that are on H1B.
CoronitaParticipant[quote=The-Shoveler]I would not want to be the investor in these high end downtown apartments when the fad fades, but that is just my opinion.[/quote]
There’s a need for luxury apartments, and there’s demand for it provided the economy is good.
However, I wonder once the economy turns south, just how much “luxury apartments” demand will there be.
I don’t know, I guess some people who are use to New York City rent prices might think things like One Paseo is a great deal… But exactly how many people would like to spend this much on housing that is not even their own… I don’t know.
Then again, many Americans do like bling, and how I choose to use my money isn’t necessarily representative of how most Americans use their money….
CoronitaParticipant[quote=AN][quote=flu]yup…. I was saying just putting a complex that looks like high end with high end prices isn’t going to work ….[/quote]Why do you think it doesn’t work? Several of my millennial coworkers are either living there or will be living there soon.[/quote]
it won’t work for the demographics that Brian mentioned … It might work for other demographics. But then it also depends on how much over average rent is
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