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04-18-2017, 03:30 PM | #856 |
MVP
Join Date: Aug 2000
Location: Lee's Summit
Casino cash: $4721637
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Is there a ticker? My daughter just gave me her $200 bday money to throw at something for her. would like to take a chance at that
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04-18-2017, 03:35 PM | #857 | |
In BB I trust
Join Date: May 2003
Location: Boston, Mass.
Casino cash: $10029808
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Quote:
Maybe put something small in that if you must, but I seriously disagree with "go big or go home" investing strategies. Buy a REIT that pays a 7% dividend yield, or another steady, stable, growth stock, or perhaps an Index Fund tracking ETF. She presumably has decades. Start investing, and watch the magic of compounding and growth over many years work for her.
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04-18-2017, 03:47 PM | #858 | |
Kind of a mod
Join Date: Aug 2005
Location: Donkey Land
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04-18-2017, 06:16 PM | #859 | |
Mod Team
Join Date: Sep 2011
Location: Valley of the hot as ****
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It’s up to you (or the child) to document that she had income earned from work. The money can’t be an allowance or a gift. (You can find more about the IRS’s definition here). It’s up to the account custodian to document the service rendered, when it was done, and the payment. It also has to be a reasonable rate. You can’t pay $1,000 for a night of babysitting. http://www.rothira.com/roth-iras-for-kids
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04-18-2017, 07:47 PM | #860 |
The Maintenance Guy
Join Date: Sep 2005
Location: Renovated Bugeater Estate
Casino cash: $4002680
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No mortgage and no dependents anymore means we're getting ****ing killed with income taxes. The Mrs is getting bought out of her pension soon, she just wants to dump it in her 401k, which already has a substantial amount of money in it. I was thinking maybe we should buy a rental house. Hell it probably wouldn't really make any money until we sold it, and it will likely lose money the first few years. Smart idea or not?
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04-18-2017, 08:04 PM | #861 | |
Banned
Join Date: Jan 2013
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04-18-2017, 08:09 PM | #862 |
The Maintenance Guy
Join Date: Sep 2005
Location: Renovated Bugeater Estate
Casino cash: $4002680
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We already own one home free and clear, so we're already ahead. I'd just like to find some tax breaks, and her answer is to put more money in the 401k. Guess I'd like to diversify a bit from that, and maybe even claim some losses for a few years. I have no idea how that works. Suppose I need to talk to an accountant.
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04-18-2017, 08:28 PM | #863 |
MVP
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04-18-2017, 10:43 PM | #864 | |
Supporter
Join Date: Apr 2007
Location: Scott City KS
Casino cash: $474734
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Accordingly, only monies spent OVER 12,600 does you any good. Where you're getting smoked is the extra exemption for 4050. Also, if you haven't filled out a new W-4 form and whatever Nebraska's witholding form is, do it now. You're probably underwithheld, which is why you're getting smoked on the taxes. RE: Rental Rentals CAN be a good deal if you manage them properly. First, they need to make you money or you just as well pay tax and go invest in retirement. Renting here is a ****ING RACKET so everyone is doing it. Basic management things, like bulletproof leases covering everything that can cost you piles of money, knowing the process for evicting mother****ers, and knowing the rent market so as to NOT be the cheapest place to rent, as well as finding a house to buy that will net you a good return will be the difference between a sound investment and a ****ing albatross that will make you want to pick a fight in a mexican bar just to end the agony. As far as taxation, there are no withholdings, so make estimates, or at least save up whatever your tax bracket is for taxes. They're coming. There is no SE tax (which equates to both the employee and employer portions of social security and medicare, or to put a number on the ****ing 15.3%) So that's a major benefit. Show a profit. Don't take a loss over and over or you'll get audited. On that note, save receipts. KEEP TRACK OF EVERYTHING. Every tool you buy to fix something, every mile you drive for any business regarding the rental (Keep a log, the money is good enough it is worth your time) It's a good idea to have a separate checking account for the rental and ONLY for the rental so it is easy to keep straight. Just record it as owner's draw if you pull money out for personal. Don't pay yourself a wage, (essentially charging yourself SE), but make sure it is paying your time or you need to get rid of it. And what nobody will say out loud is it is a good place to commit tax fraud. If you need a new door handle at the house - deduct it on the rental. You can do that with small stuff, but putting a 50,000 kitchen in your house won't fly. But tools you need for other stuff can be deducted over the rental. Supplies for the house, vacuum cleaners, light bulbs, whatever. It can be done. If you're comfortable with it. Some guys are, some aren't. Just make damn sure you have a receipt and a justification if you get called on it. Rentals have to be depreciated (which is taking a portion of the cost as expense for the year). I can't remember the treatment, but it is quite a while. So what that does, is when you sell it, the basis in the sale is less whatever you depreciated. And sale price-basis=gain (taxable income but IIRC it is limited at 20%) Say you bought it for 10,000, depreciated 2,000 and sold it for 10,000. Since you depreciated 2,000, you got a break of 2,000 on taxes, so now you get to pay the taxes. Boom. You owe $400 tax. And the numbers get pretty serious as they get big, so gain can change the game pretty significantly so if you sell something, hang onto the cash until your taxes are filed. On the depreciation note, it is kind of a cash flow crunch because you spend ALL the money up front and only get the tax break spread over however many years. If you have the money saved up now, it shouldn't be a big deal because you've already paid the tax on it. But it can throw a wrench in things if you spend all your cash or borrow money to do it. If you borrow money, the principle is not deductible, but interest is. So factor that into your cashflow. Some people get a mortgage on their primary residence to buy the rental. If you're itemizing without home mortgage interest and will be for perpetuity, that's fine. If you don't itemize, then you can't deduct the interest. And typically home mortgages are better rates, but you'll have to do the math on the tax impact of the interest vs rate savings. Good luck man. Some guys love rentals, some guys hate them. If you have any specific questions, feel free to shoot me a smoke. |
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04-18-2017, 10:44 PM | #865 |
Supporter
Join Date: Apr 2007
Location: Scott City KS
Casino cash: $474734
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Oh, and congratulations on paying off your house. That's a huge deal. I'm jealous.
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Posts: 57,997
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04-18-2017, 10:51 PM | #866 | |
Sexiest Athlete
Join Date: Apr 2001
Casino cash: $-308075
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Quote:
People who care enough to live in a house like that tend to take care of the property. People like nice things for their kids. We have a couple of rental properties, and while we see them as investments, we also see them as an opportunity to provide nice homes to folks who, for whatever reason, may not have the desire or means to purchase a home. |
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04-19-2017, 07:02 AM | #867 |
MVP
Join Date: Aug 2005
Casino cash: $4389212
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So here's a question. I got a spam email Monday night telling me that a certain company had developed a "miracle drug" and to "buy their stock immediately". This is obviously spam and, after searching around about the email and ticker symbol (and researching the company itself), it learned about "pump and dump" scams. My question is, if you are confident that you know of a pump and dump scam about to start, what is stopping you from jumping on the wagon with the scammers? You'd have to time your sell to beat theirs, but that's about it, right? I ended up buying 30 shares for fun and it went up almost 40% yesterday.
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04-19-2017, 08:23 AM | #868 |
MVP
Join Date: Oct 2011
Location: Chandler AZ
Casino cash: $1421004
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BITCF is the ticker symbol. It's crashing today. If it's a real company with a future and not just a pump & dump, which I couldn't determine because of my limited crypto-currency knowledge, it might be a good time to take a flier. If not, which is a very real possibility, she might want to take that $200 to Vegas and put it on the Chiefs winning the next 5 consecutive Super Bowls.
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04-19-2017, 08:44 AM | #869 | |
Kind of a mod
Join Date: Aug 2005
Location: Donkey Land
Casino cash: $186899
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Quote:
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Posts: 52,495
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04-19-2017, 09:24 AM | #870 | |
The Maintenance Guy
Join Date: Sep 2005
Location: Renovated Bugeater Estate
Casino cash: $4002680
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Quote:
We caught a huge break that unfortunately involved the death of family member. But yeah, it's nice, and it opens the door to a lot of other possibilities for us. Right now we're basically just blowing the extra money, we need to be more smart with it. |
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Posts: 70,538
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