All Forum Posts by: Paul Allen

Hard to beat the tax efficiency of the stepped-up basis inheriting the properties allows. 

Why don't you and your brother just operate them and give Dad 7% until he reaches end of plan?

I had two new clients this past tax season who were previously HRB DIYers. They both brought me their 2015 and 2016 returns. I noticed for both clients that their suspended passive losses were not automatically carried forward from 2015 to 2016. 

I have no idea if this indicates a software flaw or if both clients made the same 'operator error' when using the software, but it is something to watch out for. 

Best of Luck with Your Real Estate Investments!

Half of what the realtors and banks tell you you can afford.  :-)

Yes, interest income is taxable to you. They should issue you a 1099-int if the interest paid exceeded $10, but you are still responsible for paying the tax even if they do not issue the 1099-int.

Unless you have children, in which case you would likely get a large tax refund. 

Assuming you're paying double-digit interest on your credit cards, I don't have a problem borrowing against the 401K...HOWEVER...

Make damn sure you understand the terms of the loan and that you will be able to meet those terms for repayment. If you don't, Uncle Sam will charge you much more in taxes than the credit card interest you're trying to save.

@Eric Richison, if your employer was the US Government you may have other options.

@Michael Plante, that's a question for their lawyer. That's who got paid the $12,000. I know and recommend other lawyers locally who charge less than half that, but they went with someone else. 

My client mentioned the lawyer also did some research to ensure if they moved the disabled sibling from another state to Virginia in the future the medicaid benefits would not be adversely impacted. Perhaps that increased the price, but I was not privy to an itemized bill. 

@Aaron Taylor Fidelity moves mine in a day, but it must 'settle' first. Here is the typical timeline for me to convert a stock to cash:

Sell the stock Monday morning. 

It settles on Wednesday and I can request the withdrawal. (Actually I can request the withdrawal on Monday, but they won't process it until after settlement.)

Money is in my bank account at COB Thursday.

If I sell the stock Monday afternoon I probably won't have cash until Friday.

Seems like in the internet age it could be faster, but I don't really mind the delay. If I meant for that money to be invested elsewhere, it wouldn't be in stocks in the first place. If I need it for spending I plan ahead. Worse things happen to me than having external controls enforcing my financial plan.  

Best of Luck With Your Real Estate Investments!