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I need a Tax Accountant to Help Me With ____ / Re: 401k - "Age 55 Rule"?
« Last post by Jim on February 21, 2018, 06:58:41 AM »
Mark,

I haven't had to be in this specific situation, but I looked on the IRS website and found this helpful link (https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-early-distributions).  If you scroll down on the table until the heading of "Separation from Service" it says as long as you turn 55 that year, you can withdraw from a 401k without the additional tax penalty.

I believe this has to be from your current employer's 401k and not from a 401k a couple of jobs ago (if you didn't roll it over).

I don't know how the mechanics of it work on your form 1040, but that is what I found.  Hopefully this was helpful in some way.
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Investing / Re: VFIAX | VTSAX
« Last post by Jim on February 21, 2018, 06:46:09 AM »
I'm not 100% sure why everyone loves VTSAX so much.  I think a big part of it has to be with people reading JL Collins' stock series (http://jlcollinsnh.com/stock-series/) and his recommendation of VTSAX.

I personally use the ETF (VTI) in my taxable brokerage, but VFIAX in my Roth IRA's.

For me, JL Collins' stock series solidified my understanding and acceptance of index funds and if others new to the series did the same it could skew the recommendation in the FI community.
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How to Become a Wealthy Accountant / Re: Apparently not?
« Last post by Jim on February 21, 2018, 06:35:47 AM »
I agree with Nords on the fact tax preparation will be a commodity business with filing prices racing towards zero.  That being said, I think the niche of tax planning and advice for individuals and businesses could be a place where you could make a side hustle or a full-time business from.

Of course, your customers would probably want you to also file their returns so you would still have the seasonality of it. 
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General Discussion / Re: Before-Tax or After-Tax Contributions
« Last post by Jim on February 20, 2018, 09:06:24 PM »
I would need to know the balances of how much you have in pre-tax accounts now that are subject to Required Minimum Distributions (RMDs) and when you plan on retiring.  I still voted for a split approach mostly because I think you will be subject to some RMDs eventually and could get hit with a higher tax bill down the stretch unless you plan on getting rid of the rental when you retire.

I like the thought you are putting into it, but fear we would need a little more information.
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General Discussion / Before-Tax or After-Tax Contributions
« Last post by Life-saver on February 19, 2018, 02:36:25 PM »
The Data:  1 rental with a mortgage, primary residence, no mortgage.  No other debt.  6-figure income.  Very small amount in a ROTH currently (approx. $20K).  I'm maxed out in all 401K, 55 Catch-up, and HSA.
I'm in my mid 50's, 24% tax bracket, mid 6-figure net worth.

Question:  Should I enjoy the pre-tax benefit on all employer provided savings vehicles or pay some tax while I can afford it.

All opinions are welcome and would enjoy to know your logic.
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Wealthy Accountants in Your Area / looking for help in SW MO
« Last post by ecranetax on February 18, 2018, 12:18:11 PM »
I am turning clients away left and right- and I just don't believe in that! I need more help! Anybody available and looking?
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Real Estate / Re: Real estate project in Mexico & tax loss question
« Last post by cfoleverage on February 13, 2018, 01:54:52 PM »
Ah, I see...

So unfortunately, the cost to buy and build the Mexican property will not be deductible, except for depreciation on the building once placed in service, i.e. once advertised for rent. The cost to maintain the property once placed in service may be a deductible expense and help offset gains in other places, <IF> the property is being used as a rental property. Be sure to research personal use of rental property if you intend on staying there for any amount of time, since personal use can disqualify these expenses.

Still unconvinced this is going to get you the result you want, as personally, I never plan to lose a dollar on my rental properties just to save a quarter on my tax return...  ;)
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Real Estate / Re: Real estate project in Mexico & tax loss question
« Last post by laureleastman on February 13, 2018, 01:13:14 PM »
Thanks cfoleverage

We're just spending money on the Mexican property.

We need the losses to offset other non-real estate investment capital gains.

Forgive my ignorance!
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General Discussion / Accountant vs. Financial Planner
« Last post by Life-saver on February 12, 2018, 09:38:56 AM »
Not sure where the line in the sand is drawn between having an accountant and a financial planner.  Will you help clarify for the average person who is trying to put their money to work, while trying to preserve as much of the growth as legally possible?
 
My concern is I have a reasonable amount of wealth (6-figures, most in IRAs) and obsess I’m not making the best decisions for a comfortable retirement (5 years out if the market doesn’t crash too bad, 10 if we repeat a 2008 “correction”).  I have no mortgage on my primary residence in TX, rental property in CA (with a mortgage) that I’m planning a like-kind exchange for a rental property in TX.  I’ve invested in a small amount of precious metals outside of an IRA.  I like how I look on paper, and still I think I’m missing something.

You’re an accountant and speak of impressive financial planning decisions you’ve made.  Is this part of the service your firm provides?
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Since this was done in February of 2017, you just have to go by the old rules. The new tax cut was not retroactive, except for part of the bonus depreciation rules were retroactive to Sept 27, 2017. Since your improvement was done prior to Sept of 2017, it would be under the old rules for "qualified improvement property" eligible for 50% bonus depreciationand 27.5 yr life for the remaining basis.

Try this link for more info: https://www.forbes.com/sites/anthonynitti/2018/01/02/tax-geek-tuesday-changes-to-depreciation-in-the-new-tax-law/
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