I would like you to evaluate my retirement and personal
I would like you to evaluate my retirement and personal investments. My wife and I are 74 and only debt is home mortgage ($156K) and vacation cabin ($95K). Our SEP value is $162K and invested in these Equities: Enerplus Corp, Ford Motor Co New, GE Cap Corp, Callable, Ishares Gold Trust, Kinder Morgan, Northwest Pipe Co, and, Tembec Inc New; AND, in this mutual fund: Nuveen Small Cap Select; AND, in these two Taxable Bonds: Goldman Sachs Cap II FLTG, and, Transocean Inc.We are interested in income and income/growth, so that is the reason for the bonds and others that pay dividends/interest.We are too old for growth alone. Our broker is not too hot on investing in long term growth stocks/mutual funds. Not much time at our age to recoup significant losses.Our Personal Savings value is $58K, and, is invested in: Enerplus Corp, Telecom Argentina SA, and, American Cap World Grow and Inc Fd.We have $252K in cash (savings and checking). We have $228K in equity of our home, cabin, cars, and travel trailer.Our estimated net worth is $700K. We get $30K/year from our SEP ($2,500/month) and $36K/year in SS benefits.What are your thoughts of our investments? What changes would you suggest in any area of this information? Good paying interest/dividends on Bonds are very rare now. Our broker keeps an eye open for good paying bonds. We are conservative in our spending and our main checking account grows some each month. Do you think we are pulling out too much from our SEP-IRA?
O.k i have a question regarding LLC company and an S
o.k i have a question regarding LLC company and an S corporation company , this are my questions.-If i have a client that has an LLC and this company made $2500000.00 gross receipts and from those 250K the owner had $50 K expenses and keep in mind that is is a one owner LLC so everything will be reported on schedule C as fas as i knowm , so saying that he took $100 K owners draws for himself that leaves the business at the end of the year on the profit and loss statement with $ 100 K my question is if he needs to report the 100 K that he took out from the business or just the profit that was at the end of the year which was $100 K or do i need to add the 100 K that he took and he needs to report $200 K on the schedule C , please let me know because i get confused all the time because on the p&l statement the owners draws are not listed there since this is a equity account so it won't be listed and what about if he had taken the $200K as an owners draws so he won't pay taxes at all or what thats where i get confused please advise.2.- my second question will be on an S corporation since that's what i have how do i take money oout myself as an owners draws, dividends or distributions and of course it is not going to show on the P&L statement since this is an equity account also so at the end of the year do i need to add that to the schedule k or how does that work because tecnically i thionk i need to pay taxes on that income also right ? please advise.because i need to understand this 100 % so i can prepare the taxes for this client the right waythanks a lot guys for all your helpim learning a lot from you guys .
Sr Financial & Tax Consultant
I'm a sole proprietor / Just do a Schedule C each year;
HI -I'm a sole proprietor / Just do a Schedule C each year; no employees.I opened up an SEP IRA in 2015 for the very first time, and I contributed $25,000.My net profit (line 31 of Schedule C) is $105,930.I'm finding conflicting info between turbotax, and other online resources about what I can contribute as the self employed individual; some suggesting I can contribute 25% of Line 31, others going through a different formula.Turbotax doesn't seem to be helping in deciding, as their "Help Center" has an article about just doing 25%, which I'm no longer sure is right.Can you confirm the calculation please ?Thank You
Is there any issue if one of the spouses which is
Is there any issue if one of the spouses which is self-employed would contribute large sum to Sep account and the other spouse which is wage earner would contribute to traditional IRA account and would deduct them on the personal tax return?
JD, MBA, CFP, CRPS
I have two retirement accounts with the same firm
I have two retirement accounts with the same firm FolioInvesting.com, a SEP IRA and a Traditional IRA.In early April of 2015 I made a contribution of $6,000 to my SEP/IRA, this was a contribution for the year of 2014. The entire 6K contribution should have been deposited into my Traditional IRA, but I mistakenly put the monty in my SEP/IRA . Within a few days of realizing my mistake I contacted FolioInvesting and had them do a direct transfer of the entire 6K from my SEP/IRA to my Traditional IRA. The direct transfer took place on 4/6/2015 for the full amount of $6,000.I just received a 1099R in the mail from FolioInvesting showing a distribution of the $6,000 in 2015.Box 7 shows a code of 81. Box 2a shows a taxable amount of 0.00.My concern is that the IRS will think I received the 6K as a taxable distribution and should be taxed on this amount, when in fact this was a direct transfer from one retirement account to another.Are there any other forms that I need to fill out and file to make sure this doesn't cause me problems in the future? Or do you feel that FolioInvesting has handled this properly and I shouldn't worry about it?
I owe 47K in taxes (39K in Federal and 8k in State) from
I owe 47K in taxes (39K in Federal and 8k in State) from 2014 that I am now. I was forced to fight a lawsuit against my ex for false allegations of domestic abuse which I prevailed and even gained joint legal and physical custody. Since she has only 15k in liquid assets the judge hasn't determined if she will even pay my attorney's fees. The case was 40K and I incurred another 20k in cost of relocating and buying new furniture and rent deposits along with supervised visitation costs of $3900 during that period of being restrained. This was all cash I had saved to pay taxes and part of it was an emergency fund. I do have a SEP IRA that is 96K and a business that is still generating income but by no means do I have 47K in liquid assets. I am in a financially tough spot right now as I don't know how to pay these these circumstances that I had to hire an attorney to protect me from having a restraining order based on these false allegations. I am just getting by and really just surviving now as my expenses tripled and I have received a Notice of intent to seize ("levy") state tax refund and other property. I don't know what to do right now as I feel I was completely done wrong. Along with this in 2014 I was adamant about working it out as I didn't want to leave our children. One night in March of 2014 she extorts me by threatening me stating that if I don't let her claim 2 children she will file for custody and take all my money. I was the primary caretaker financially and care wise as I am a stay at home Dad running a business. Not only has she caused me to not be able to afford my taxes due to a frivolous restraining order but she extorted me for claiming two kids. Please tell me what to do as I am sick to my stomach with fear and anxiety about what the right thing to do is. I feel there is an injustice here as she clearly did two things that affected my tax burden and ability to pay. I have looked at all the IRS solutions but don't feel the tax burden is accurate because I legitimately paid for the majority of our household and chldrens private school. I wanted to claim all 3 and she extorted me for 2. Also her abuse of the judical system burdened me with lawyer fees that don't allow me to pay my taxes unless I take money out of my SEP IRA which in turn is penalized and taxed heavily for early withdrawal. Please provide some guidance on this matter and what type of solutons are there besides uses my last 96K in a SEP IRA