Forum Replies Created
-
AuthorPosts
-
CoronitaParticipant.
CoronitaParticipantBuy bitcoin instead.
If you’re trying to get rich quick by timing the market, speculate on bitcoin. It’s so volatile that the price wildly swings by +-1 $1000 almost each day…So it’s perfect for people who try to time the market.
On the other hand, if you plan on doing a long term buy and accumulate and actually invest, drip a few hundred/thousand into an S&P500 index every month for the next 5-10 years and forget about it.
January 5, 2018 at 1:24 PM in reply to: How does one start a petition drive for a CA state “tax reform” in lieu of SALT caps? #808918CoronitaParticipantNJ is now part of this fight too. Lol..
January 4, 2018 at 10:50 PM in reply to: How does one start a petition drive for a CA state “tax reform” in lieu of SALT caps? #808906CoronitaParticipantBoom!
http://www.chicagotribune.com/business/ct-california-trump-tax-law-20180104-story.html
California Senate leader on Thursday introduced legislation aimed at circumventing a central plank in the new Republican tax law, introducing a model that – if successful – could be replicated all over the country.
California Senate President Pro Tempore Kevin de León, D, introduced a bill that would allow taxpayers to make a charitable donation to the California Excellence Fund instead of paying certain state taxes. They could then deduct that contribution from their federal taxable income.
CoronitaParticipantNot that I plan on having this problem….
Per CA law, you’re allowed to possess MJ in your car, right?
What if you cross the San Ysidro checkpoint, get stopped, and they search and find you have MJ in your car.
Doesn’t federal law trump (no pun intended) state law?
CoronitaParticipant[quote=bewildering]I use Goldman Sachs AKA “Marcus” for my emergency fund. It is at 1.40% at the moment. No hassle setting up the account or transferring money.
The rates are getting better. There seems to be a little competition between online banks for the best rates at the moment. Although I remember the days of 5% interest.[/quote]
what is the term of the 1.4%? Is it one month CD or money market?
Schwab had a few 1months at 1.3%, a lot of 3month at 1.5% and I think 1 year at 1.8%
just wanted to compare rates a little. I don’t think I’ll change, because I can ladder different CDs for my cash reserves and I don’t want to tie it up longer than 3months at most.
FWIW I think the yield on the vanguard prime money market is around 1.3% I think….it can be liquidated in a day. not insured, though I doubt vanguard is going anywhere soon.
December 24, 2017 at 9:23 AM in reply to: How does one start a petition drive for a CA state “tax reform” in lieu of SALT caps? #808845CoronitaParticipantThere is already a 50% tax credit from Cal Grant.
http://www.treasurer.ca.gov/cefa/catc/index.asp
Mainly useful for people subject to heavy AMT.
The sweetener would be if there were donations that produced 80-95 cents on the dollar.tax credit.
December 23, 2017 at 8:41 AM in reply to: How does one start a petition drive for a CA state “tax reform” in lieu of SALT caps? #808841CoronitaParticipantLooks like some politicians have caught on…. We’ll see if it sticks next year.
De León, who also is running for U.S. Senate, said the state Senate is working with law professors at UCLA, UC Davis and the University of Chicago to develop the legislation.
Ideas being considered, according to a de León spokesman, include:
Reducing state personal income taxes through a tax credit program and offsetting that amount through payroll taxes.
Allowing individuals to make voluntary gifts to the state of California, which would be deductible as a charitable donation under federal law. The deduction for the donated amount would replace the state and local tax deduction.CoronitaParticipant[quote=plm]Didn’t realize a rental was an investment instead of a business. In this case I should be able to cash out some of my stock gains and pay off my mortgage. Then I can also get a mortgage on my rental and buy stocks. Although lately my stocks have been going down while the market is up but that’s another problem.[/quote]
I’m not sure I follow about cashing out stocks and paying off mortgage, only to turn around and borrow against the home to buy stocks again….If you do that…
1. You pay capital gains taxes on your stock sales.
2. You pay off a mortgage, and then take another mortgage out, you incur a new loan with most likely higher interest.
3. You run the risk that if you pick the wrong stocks or just invest at the wrong time in the stock market, you are now stuck with paying a mortgage to fund your stock losses.
4. If you now have rental issues (like lapse in tenants, or the general health of the rental markets goes down)….now that’s coming out of your pockets.
5. Depending on how much the rest of your income, you might not be able to offset real estate losses against your W2/salaried income.
Basically, you’re significantly increasing your financial risk, but I’m not seeing the potential of much greater financial reward beyond what you already have. Why take on increased risk, if the amount of reward does not significantly increase?
CoronitaParticipant[quote=plm][quote=SK in CV][quote=plm]Interest in loans should be an expense too, right? So I should get a loan on my rental and use that to pay off my mortgage on my house. This way I can write off the interest as a business expense as I will probably be taking the standard deduction next year. Also avoid the net investment 3.8% tax if I get a big enough loan to make rental just barely making money.
Is this legal?[/quote]
If your rental doesn’t have a mortgage, and you borrow against it, and use the money to pay off the mortgage on your principle residence, the answer is no. It’s not deductible interest.[/quote]
Makes sense. I suppose if I get a mortgage and use that money to buy another rental then that is allowed. But then I would have to manage another rental.
Thanks[/quote]
Yes, that’s what I have been doing. Cash-out refinance loans, and use to buy another investment, the interest is deductible as an investment expense on the new investment. Or cash out refinance on one property to pay off the loan of an existing investment, that interest is also deductible as an investment expense on the property you are changing the loan on..It doesn’t just apply to property. If you want to take a gamble and buy bitcoins, I believe you could in theory deduct the interest as an investment expense also….no different than margin interest you incur for stock investments (if that’s also your things) is a deductible investment expense too against your investment… There are probably some caps or some floors, I don’t remember the details….. The details are in Publication “550” from the IRS…
And yes I’m pretty certain the $10k cap on prop tax is on personal property tax, what you claim on Schedule A….Property tax for a rental property doesn’t go on schedule A, it goes on Schedule E (or one of the forms associated to Schedule E, which I forget off the top of my head). completely different.
CoronitaParticipant[quote=ltsdd]Just made payments on the second installment.
Does anyone here know if by moving rental properties into separate LLCs could be a legal way to avoid the $10K prop tax deduction limit?[/quote]
Why? For rental properties, taxes and mortgages are fully deductible to offset income. Think of it as cost of doing business. Same thing as HOA fees, maintenance fees, cost of gardener if your lease includes one, etc.
December 20, 2017 at 10:59 AM in reply to: How does one start a petition drive for a CA state “tax reform” in lieu of SALT caps? #808809CoronitaParticipantWell, time to make my annual 529 contributions. Lol..m.
December 20, 2017 at 10:20 AM in reply to: How does one start a petition drive for a CA state “tax reform” in lieu of SALT caps? #808807CoronitaParticipantUsually the school district then tries to adjust money from the general donation pool fund and gives more to the schools that have less contribution.
December 20, 2017 at 10:18 AM in reply to: How does one start a petition drive for a CA state “tax reform” in lieu of SALT caps? #808806CoronitaParticipant[quote=SK in CV]Give the money directly to the school district or even school. That’s how AZ does it. The tax credit form requires that you specify the school or school district. In fact, you can even specify the program within the school to get the funds. I send $400 (almost) directly to my niece’s classroom. She gets to have aids in her 16 kid, all non-verbal, special ed classroom because of the money she raises. I get credit exactly (for me anyway, there are limitations) like an estimated tax payment on my AZ return and a charitable deduction on my federal return.[/quote]
Another good point. I stopped donating directly to my school district’s general pool fund. I make my donations directly to the specific school’s science and grade teachers classroom, complete with receipt….need a new computer to run the latest simple machine tool? done…. Just make sure you get a nice receipt.
-
AuthorPosts
