Money Investing megathread extravaganza - Page 508

**DaFace** · 06:35 PM

A place to talk about investing stuff.

Hammock Parties · 02-20-2021, 12:24 PM

Quote:

Originally Posted by In58men

Nice tax write off too. **** paying rent.

Yeah. I'm going to need that tax write off next year.

Hammock Parties · 02-20-2021, 12:30 PM

Quote:

Originally Posted by lewdog

Not worth it with rates this low. With your down payment and house price, your mortgage will be dirt cheap. Still makes sense to buy.

I think I found a good local lender on my third try. Quicken was trying to go in dry.

Just got pre approved for 15 year conventional for an amount that I actually need, not what they want to lube their loan cock with.

**Buehler445** · 02-20-2021, 12:47 PM

Nah. You don’t get to write off home mortgage interest unless you itemize. Which after Tax Cuts and Jobs Act the standard deduction is super high and virtually nobody itemizes.

Even then you’re only deducting itemized expenses OVER what the standard deduction is.

For instance, Clay, your standard deduction for 2020 is 12,400. If you make any money medical is probably kicked out as there is a 7.5% of AGI exemption. And state taxes (which would include your property tax, so as a single dude, that’s the one limit that isn’t halved for single dudes you might have something there, but whatever. Follow along) is limited to 10K. So in order to fully deduct your mortgage your SALT and contributions would have to equal 12,400.

Here’s an example with made up numbers.

2020 Clay:
Medial: $0
SALT: $2000
Home mortgage interest: $0
Contributions: $500
TOTAL Itemized: $2500. Clay is taking $12,400 Standard Deduction.

2021 Clay
Medical: $0
SALT: $7,000 ($5k additional PPT)
Home Mortgage: $8000
Contributions: $500
Total Itemized: 15,500. Clay itemizes $15500.

Marginal additional “deductible” expense: $13,000 (plus principle, which is not deductible but still comes Out of your pocket and is probably in the neighborhood of 3-4K the first year)
Marginal additional Tax Deduction: $3,100.

If you can even hit itemized, it’s not a dollar for dollar deduction. Be careful relying too much on deducting anything.

Don’t count too much on the deduction.

Hammock Parties · 02-20-2021, 12:51 PM

So there are no tax breaks for first-time homebuyers?

****.

**Buehler445** · 02-20-2021, 01:19 PM

Quote:

Originally Posted by Hammock Parties

So there are no tax breaks for first-time homebuyers?

****.

Not for a decade. Federally anyway.

https://smartasset.com/taxes/first-t...yer-tax-credit

FWIW, I'm pro-owning your own home. I'm just anti-bad financial decision making.

Buy the house if you can afford it. If you get added benefits, book that as a bonus, don't count on it.

In58men · 02-20-2021, 01:23 PM

Off topic...I’m thinking about buying silver. What are your guys’ thoughts?

Worth it? Not sure when will it actually become profitable.

**DaKCMan AP** · 02-20-2021, 01:34 PM

Quote:

Originally Posted by In58men

Off topic...I’m thinking about buying silver. What are your guys’ thoughts?

Worth it? Not sure when will it actually become profitable.

You're considering purchase of an asset that you don't know when or if it will provide a return?

**Buehler445** · 02-20-2021, 01:42 PM

Quote:

Originally Posted by In58men

Off topic...I’m thinking about buying silver. What are your guys’ thoughts?

Worth it? Not sure when will it actually become profitable.

It's a commodity. You're in the oil field right? It's similar to you buying oil contracts for a long term hold.

100 Year Silver Chart. Check the numbers on the left

Silver Prices - 100 Year Historical Chart

100 year DJIA (and that's not what's running hard now)

Dow Jones - DJIA - 100 Year Historical Chart

EDIT: You'll have to click the link.

DON'T "Invest" in commodities. Bottom line the sister****ers trying to get you to invest in metals are hucksters. If the dollar fails we're all ****ed and silver won't save you.

In58men · 02-20-2021, 01:42 PM

Quote:

Originally Posted by DaKCMan AP

You're considering purchase of an asset that you don't know when or if it will provide a return?

Correct, it’s basically similar as stocks. You can purchase, but won’t know when it’ll profitable.

Maybe somebody here has more knowledge, that’s why I ask.

In58men · 02-20-2021, 01:42 PM

Quote:

Originally Posted by Buehler445

It's a commodity. You're in the oil field right? It's similar to you buying oil contracts for a long term hold.

100 Year Silver Chart. Check the numbers on the left

Silver Prices - 100 Year Historical Chart

100 year DJIA (and that's not what's running hard now)

Dow Jones - DJIA - 100 Year Historical Chart

EDIT: You'll have to click the link.

DON'T "Invest" in commodities

Awesome! Thanks for the info man. Interesting.

In58men · 02-20-2021, 01:47 PM

I must not have got the joke :/

**DaKCMan AP** · 02-20-2021, 01:50 PM

Quote:

Originally Posted by In58men

Correct, it’s basically similar as stocks. You can purchase, but won’t know when it’ll profitable.

Maybe somebody here has more knowledge, that’s why I ask.

No, it's not the same. When purchasing a stock you should have an expectation of return and the timeline. It's not guaranteed, that's why there's risk but you can use financial data of a company to forecast.

**Buehler445** · 02-20-2021, 02:01 PM

Quote:

Originally Posted by DaKCMan AP

No, it's not the same. When purchasing a stock you should have an expectation of return and the timeline. It's not guaranteed, that's why there's risk but you can use financial data of a company to forecast.

In theory you should be able to use fundamentals in commodity markets to forecast similar moves. It doesn't work, but I don't know the numbers compared to stock earnings.

But it's an entirely different thing. The goal of a stock is maximize net earnings, suggesting long term growth. The goal of a commodity market is merely to standardize trading. Structurally they cannot continually rise like a stock has the possibility to.

KCUnited · 02-20-2021, 02:31 PM

Am I reading the home office tax write off stuff correctly. That it only applies to the self employed?

Wife and I have 2 dedicated offices, not bedrooms doubling as offices, but true office spaces. Was hoping there was some type of write off for that based on sq ft.

scho63 · 02-20-2021, 02:54 PM

Quote:

Originally Posted by KCUnited

Am I reading the home office tax write off stuff correctly. That it only applies to the self employed?

Wife and I have 2 dedicated offices, not bedrooms doubling as offices, but true office spaces. Was hoping there was some type of write off for that based on sq ft.

I may be wrong with all the tax law changes but I thought if you had a home office and used it for your employer, you could claim the percentage of time you used it for business.

06-27-2016, 11:23 AM
DaFace Kind of a mod Join Date: Aug 2005 Location: Donkey Land Casino cash: $96899	Investing megathread extravaganza A place to talk about investing stuff. Last edited by DaFace; 02-19-2021 at 06:35 PM..
Posts: 52,536

02-20-2021, 12:47 PM	#7608
Buehler445 Supporter Join Date: Apr 2007 Location: Scott City KS Casino cash: $384734	Nah. You don’t get to write off home mortgage interest unless you itemize. Which after Tax Cuts and Jobs Act the standard deduction is super high and virtually nobody itemizes. Even then you’re only deducting itemized expenses OVER what the standard deduction is. For instance, Clay, your standard deduction for 2020 is 12,400. If you make any money medical is probably kicked out as there is a 7.5% of AGI exemption. And state taxes (which would include your property tax, so as a single dude, that’s the one limit that isn’t halved for single dudes you might have something there, but whatever. Follow along) is limited to 10K. So in order to fully deduct your mortgage your SALT and contributions would have to equal 12,400. Here’s an example with made up numbers. 2020 Clay: Medial: $0 SALT: $2000 Home mortgage interest: $0 Contributions: $500 TOTAL Itemized: $2500. Clay is taking $12,400 Standard Deduction. 2021 Clay Medical: $0 SALT: $7,000 ($5k additional PPT) Home Mortgage: $8000 Contributions: $500 Total Itemized: 15,500. Clay itemizes $15500. Marginal additional “deductible” expense: $13,000 (plus principle, which is not deductible but still comes Out of your pocket and is probably in the neighborhood of 3-4K the first year) Marginal additional Tax Deduction: $3,100. If you can even hit itemized, it’s not a dollar for dollar deduction. Be careful relying too much on deducting anything. Don’t count too much on the deduction. Last edited by Buehler445; 02-20-2021 at 12:49 PM.. Reason: Name of the tax bill
Posts: 58,171	1 0

02-20-2021, 12:51 PM	#7609
Hammock Parties I'll be back. Join Date: Nov 2002 Casino cash: $2780478	So there are no tax breaks for first-time homebuyers? ****. __________________ Chiefs game films
Posts: 288,631

02-20-2021, 01:23 PM	#7611
In58men **** you, you cretin. Join Date: Jan 2012 Casino cash: $368026	Off topic...I’m thinking about buying silver. What are your guys’ thoughts? Worth it? Not sure when will it actually become profitable. __________________ Attendance Chief record 11-9
Posts: 30,166

02-20-2021, 01:47 PM	#7616
In58men **** you, you cretin. Join Date: Jan 2012 Casino cash: $368026	I must not have got the joke :/ __________________ Attendance Chief record 11-9
Posts: 30,166

02-20-2021, 02:31 PM	#7619
KCUnited Cheat Death Join Date: Nov 2007 Location: Land of Drincoln Casino cash: $358244	Am I reading the home office tax write off stuff correctly. That it only applies to the self employed? Wife and I have 2 dedicated offices, not bedrooms doubling as offices, but true office spaces. Was hoping there was some type of write off for that based on sq ft.
Posts: 35,513