Anyone Pre-Paying RE Taxes for 2018?
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inheritance tax - how much we will pay?
Comments (28)bob_cville brings up an important point which the rest of us had overlooked. As more and more people inherit 401k's and IRAs, it is critical to understand that one needs to make the correct decision in such a case, BEFORE the funds are distributed. For our parents this was not an issue, the grandparents of Boomers didn't have these type of accounts. However, for us and succeeding generations, it is incumbent upon us to be aware not only of the current laws, but any future changes that will made in those laws by Congress. If you are inheriting any portion of an IRA, it's important that you know whether or not the owner was taking distributions. Once distributions are begun, they MUST be continued by the heirs. An IRA passed to multiple heirs may be split in any proportion the owner has specified. The heirs are best served by opening up a new IRA. Titling of this new IRA is very specific to avoid IRS problems. I've excerpted part of a WSJournal article on this issue: "...Inherited IRAs don't work like regular IRAs. If you inherit an IRA from anyone other than your husband or wife, you can't roll it into your own IRA. And you can't consolidate IRAs you inherit from different people into one account. So, if the heir had withdrawn the assets from a parent's IRA and deposited them into her own IRA, she would have undone the inherited IRA, making all its assets taxable. She also would have to remove any assets she deposited in her IRA above her allowed IRA-contribution limit for the year -- $5,000 if she's under 50, or $6,000 if she's 50 or older -- to avoid further penalties. But it appears that the account in question was left as is, except for being improperly titled. Thus, the error should be considered an administrative one that can be fixed. The reader would need to retitle the IRA so it's clear that the owner died and that she is the beneficiary. Ed Slott, an IRA consultant in Rockville Centre, N.Y., recommends using this format: John Smith IRA/ Deceased 1/1/2009/ FBO Mary Smith as beneficiary. (note: FBO means "for the benefit of") Make sure that the financial institution gets the titling right not only on the statements it sends to you, but also on the internal records it uses for reports to the IRS, he says. Some large IRA custodians use the beneficiary's name on the statements sent to him or her, but use the formal titling (as in the "John Smith" example, above) on the information it sends to the IRS to avoid confusing beneficiaries. After you have retitled the inherited IRA, you can stretch out withdrawals from the account across your lifetime, rather than being forced to withdraw the funds sooner. That gives you a chance to extend the time that tax-deferred earnings can accrue, possibly increasing your inheritance."...See MorePaying sales tax on internet purchases
Comments (32)((((HUGS)))) Unfortunately, even on "nice" boards, there are times when claws, or just schadenfreude, come out. :( It's very sad, and I'm so sorry you've felt people being mean to you. I know it doesn't help at all to think "it's about them" when you were looking for a "safe" (or as safe as a public forum can be) place to discuss a delicate subject. ((((HUGS)))) States complain about lost revenue from sales taxes not being recouped, but they don't complain about the amount of commerce in general, even if it's the gas spent by the delivery trucks. When they start discussing this on the Federal level (interstate commerce), and start thinking about levying tax on internet purchase (other than the instate tax that people are used to paying), there's such an uproar, and the constituencies, both sellers and buyers, are so upset, that they drop it. The world is changing, and it's taking some time for people and modalities to catch up. Sometimes it's easier to buy a roll of masking tape online than have to hike around a big box store looking for it. People don't do that to avoid the tax! Still, sales tax is regressive. People with the least money spend the largest portion of their incomes on sales tax. They order out of state, take trips into bordering states that have no sales tax, into bordering countries where they have no tax or give it back, etc., etc. Sales tax is onerous. It's always been the law in most places that collect sales tax that you have to pay it on things brought in from out of state. In my state, it has mostly been enforced on really big items like cars. Unfortunately, a new kitchen is pretty much the equivalent of a car. But if it's in the news about your state collecting on Income Tax filings, and you've received a phone call immediately after, I agree it's probably a scam. And I agree that you would most likely have received a form letter rather than a phone call. In fact, the normal way it should happen is that first you'd receive a form letter from your state's revenue agency telling you that you were obliged to report, and then if you didn't report and they had reason to think you should have, they'd send a reminder of the things you should have reported and an option to pay the back taxes plus interest. Then you'd receive a form letter telling you about a hearing scheduled. And on like that. If your friend received a call, it should have been a recording. Live person calls are too expensive for chasing a pittance (and the amount of tax owed, even if your friend's new kitchen is even nicer than yours, is a pittance to the state coffers). You could check with the department of frauds to see if this is a known scam, and a lawyer to see if it's possibly real....See MoreTax Bill: Small Investors [may] Face Steeper Tax Bill
Comments (7)In Canada, when we sell, we use the average price. I bought shares in a dependable bank (only half a dozen biggies and more highly regulated in Canada) 50 years ago for about $4.25 per share, paying about 10 - 12 cents annual dividend, at lower tax rate than one pays on interest income, which is taxed at top rate, could have sold in 2007 for $107. , paying $3.08 annual dividend ... and when they were heavily involved in the financial fiasco in a nearby country in 2008, share price went down to $40. or so. People said, "Oh, my God! What a loss - I hope you sold earlier!". When the loss is small, one chooses to let the fluctuation ride, and when it goes down further, one doesn't want to take that loss. I asked them whether they felt that a Canadian bank might go broke, this week or next? A number of experts said later that that bank darn near did go broke - gov't. bailout? Others said that they would almost surely cut the dividend, heavily. They didn't - it stayed the same for about 4 years. I hoped that one day it would pay me each year the price I'd paid for the stock in the first place - granted - about 40 years before ... when a dollar was worth a lot more. The stock has recovered to about $124. dollars recently, $111. now ... paying $5.60 dividend, $1.35 above the original stock price, at low tax rate. How much have I paid a money manager to take good care of it through those 50 years? Not one penny. If you'd like mutual funds, about 90% of whose managers don't produce better than the segment of the markets in which they operate, that's your choice ... but spend some time learning how money and investments work, maybe starting in the library. If you're in Canada, check "Canadian MoneySaver" magazine, which doesn't carry ads: maybe attend one of the 40 or so groups of subscribers that meet to discuss investments - I've been involved monthly for about 20 years. After you've gained some experience, maybe done paper trading for a while, put some of your investable assets into quality stocks ... and pay yourself the 1.5 - 2.5% or so of their price that you pay the managers of the mutual funds. ole joyful...See MoreOctober 2018, Week 2, We're Gonna Need A Bigger Boat
Comments (43)Larry, That is a beautiful and awesomely tall example of variegated reed grass! Maybe yours is going to get head high to the Jolly Green Giant? Jacob, If I didn't have the 8' tall deer fence all around both garden plots, the deer and I would not be friends. I think Bambi lost her mother, perhaps to a hunter. We have tons and tons of fawns this year---it seems that most does had at least twins this year and one that comes regularly has triplets. I love seeing them. If only the fawns could stay little, cute and adorable forever. People who hunt the property due west of us (it is the buffer that sits between us and the river, so they get a ton of wildlife) are getting pretty large bucks every year....say they sit on their property and wait for the bucks to come off our property. I rarely see the bucks because they feed at night, but I know they are there because every now and then late at night when we are out late, we spot them as we are arriving home. I tried for the first 8 or 10 years to have nice landscaping around the house/yard, which my husband stubbornly refuses to fence off with an 8' fence. The deer ate every single thing I planted, so I finally gave up. Now we just have trees, shrubs, trumpet creeper vines (because apparently the deer don't eat those), grass and some four o'clocks. Everything else? Hostas, hydrangeas, roses, perennial salvias, any annual flowers I planted for color, day lilies, etc......all deer chow. They even would eat the tough, prickly leaves of the hollies in drought periods, but finally the hollies are so big and old and tough that they don't bother those any more. If I ever convince Tim to surround our house and yard with a big ugly fence to keep the deer out, I will plant everything I've ever wanted around the house. I think his desire to not have a fence is much stronger than my longing for one. Where he grew up in Pennsylvania surrounded by woodland, nobody had fences so you could look out and feel like you owned hundreds of acres of forest as all the back yards and farms just sort of flowed together. So, he remains anti-fencing based on fond childhood memories from the 1960s and 1970s.....even though, if you go back there to his childhood neighborhood now, everybody has fencing and the farms and woodlands mostly are housing subdivisions with lots of fencing. I still think that someday I'll at least have a fenced back yard I can landscape. We'll see! Nancy, I am so sorry about your mom's passing. I know I don't "have to" comment, but I want to. Tim and I send you and your family our deepest and most sincere condolences. What an incredible, long life she lived, and you did everything you could to move her to the place that was best for her to live out her final stage of her life. You were a great daughter and I suspect it is because you were reared by an amazing mom. When y'all do travel to Buffalo in a few weeks, I wish you a safe journey. I do think Tiny Dude needs to travel with you so he can enchant and delight your friends and family who see his photos on Facebook and undoubtedly want to meet him in real life. Many cats travel well in a cat crate. Do they microchip cats like they do dogs? If they do, I'd get him microchipped in case he escapes from the vehicle, or at least get him a collar with a tag so you could put your cell phone number on the tag. Being close to the interstate where wrecks are frequent, we get lots of requests to watch for/search for pets that escape from a vehicle (not necessarily a wrecked vehicle---pets can bolt from a broken down vehicle when someone gets out to check and see why the engine is acting up or to change a tire or just when their owners stop at a gas station or fast food place). Sometimes you can find the pet, even weeks later, but it is hard by then to figure out which traveler passing through was searching for that pet if they aren't tagged. In my meager 20 years of living here, an early winter almost always equates to a bad winter. Or, for snow-starved southern OK, a really good winter. But, we don't get the ice storms that folks further north get in bad winters so what a lot of you might view as a bad winter, I might think of as a delightfully cold and snowy winter....if we get snow. If we don't get snow, then who cares? All winter without snow means is that we are cold and wet. I don't like being cold and wet, but I love snow. Not that I've had much snow to love. Our county does sometimes get the ice storms that bring down trees and power lines, but so far, that sort of weather never has come as far south as our house---it has made it down to maybe 3 or 4 miles north of us though. The bad thing is that if we get cold enough for ice and snow, then we get cold enough to lose Zone 8 plants that I planted here in order to see if they would survive here. They will survive here for a few years until we get an extra cold winter and snow. So, I sort of hope for snow, and sort of don't. I rarely plant Zone 8 plants here any more, although I planted a couple this past year.....which pretty much guarantees a cold winter is coming so it can wipe them out. I haven't seen a hummingbird since a week ago Thursday, but left the feeders up in case any were going to ride down on the big cold fronts. I haven't seen any, but will leave the feeders up until Monday or Tuesday, just in case, and then take them down. We ended up with the oldest granddaughter coming to stay with us for the weekend after her plans to spend the weekend with her dad fell through at the absolute last minute. We are always excited to have her come visit for a weekend, even if it wasn't planned. So, we ate dinner out with her, her mom and Chris last night, and then they headed home to get sleep before the busy work weekend with long shifts scheduled at work. We went to Wal-mart after dinner and bought everything we needed to stay home indoors and out of the rain today. We're going to carve pumpkins, which she has been dying to do....but I wanted to wait for cooler weather so the heat wouldn't ruin the Jack-o-lanterns. I think the heat isn't an issue any more. We're going to decorate Halloween Jack-o-lantern cookies (pre-baked and sold with a decorating kit). She has a long list of Halloween crafts she wants to make, including the Halloween version of a gingerbread house (we'll see about that one), so we'll work out way through that list as much as we can. I awakened at six and saw on the radar that the rain was almost here so rushed to get the dogs outdoors ahead of the rain's arrival. Whew! That was close but we made it. We're supposed to have rain all morning. How deeply into the afternoon the rain lasts is the unknown. I wish it would blow through faster, but it might be a long, rainy day here. We're ready for it and aren't planning on going out in it. I have some amaranth in the garden with huge flowering seed heads I'd hoped to have harvested and drying by now, but the relentless rain has kept me from cutting them. I keep hoping for a warm, sunny, windy day without rain so they can dry out some and then I'll cut them. I think if I cut them while they are so wet, they'll just mildew and look awful. I want the flower heads for autumn flower arrangements, but the rain may ruin that idea. When I planted the amaranth seeds in July, I wasn't expecting record rainfall in September and October. Have a lovely Saturday everyone. I hope those of you that the rain keeps missing will get some of this moisture plume left over from Sergio. The unfortunate thing is that it seems largely to be traveling over areas that already have had too much rain recently, so flash flooding and flooding likely will occur in those areas. The Red River is up and running fast and looked ugly last night, so this rain will just make that worse. I am thinking the winter wheat crop here likely is ruined. Too, too much rain even for seeds to sprout and grow, so it is more likely that if the seeds sprout, then the young plants rot. That's so unfortunate, but that is how life goes here on the southern plains. Dawn...See More- 8 years ago
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