All Forum Posts by: Mark S.

I just had granite countertops installed as part of upgrading my kitchen in my primary residence. I went with someone who came highly recommended to me by 3 other people I know personally. After shopping around a little bit, this company was in the middle as far as price per square foot, said they don’t charge any other installation fees, fees to drill holes, etc.

Overall the countertops look great (went with Valle Nevado - which I guess is an A grade granite meaning entry level and very common so it’s a bit less expensive - went well with other kitchen colors).

Anyway, original estimate was $2,050 for 3cm granite and $200 for Pelican 50/50 sink, so $2,250 all-in.

Final invoice had taxes of $125 listed. Total was $2,385 (should be $2,375 but his math was wrong and I had a million things going through my mind related to the kitchen remodel that I missed it so overpaid by $10). I paid the $2,385.

Afterwards, I started trying to figure out what this tax was based on. $125 / entire amount = about 5.5%. $125 / $2,050 countertops = about 6.10%. Sales tax in Kentucky is 6%. Question is whether or not I should have been charged tax?

I’ve read yes in some states and no in others. In fact, there was an article, I believe for MO, stating a lot of granite countertop installers add this tax in and it’s essentially a scam because in that particular state, customer doesn’t pay tax on this.

BOTTOM LINE: Should I have paid this tax or did he pull a fast one on me?

I really shouldn’t care as it’s such a small amount and I feel like the “out-the-door” price is more than fair, it just pisses me off because they were late, one of the cuts was slightly off (which hopefully shouldn’t be noticeable because we’re adding a backsplash), and I even bought them dinner as we ordered out and I didn’t want to be rude and thought it was a nice gesture (they ended up not eating, just finishing the job, and took their food for the road).

@Dean Kaeo, I haven't looked at the resources list, so I don't know if they're on there, but I use IRA Services Trust Company. They're a custodian. Good fit for what I need and very low fees (relatively speaking, for this space). I had an intro call with Sense Financial a long time ago and was not at all impressed.

@Mary Jay, you have until the tax deadline each year to contribute for the prior year.  You can do this each year.  Google is your friend.  Good luck.  

@Mary Jay, no problem.  

1.) Technically, these are conversions (not rollovers).  You can do multiple conversions    

2.) 401(k) will not affect your ability to do what you've mentioned - which is to ultimately get money into your Roth IRA regardless of your income.

Google back door Roth IRA and/or Roth conversions. For extra credit, research IRA aggregation rules regarding Roth conversions.

@Mary Jay, assuming you don't have any other pretax (Traditional) IRAs, you might consider making a non-deductible Traditional IRA contribution followed by a Roth IRA conversion (ideally leaving the money in cash within the Traditional IRA until it hits the Roth IRA). This way you don't have to worry about whether or not you make "too much" to contribute directly to a Roth IRA. If you already have pretax IRA assets (not 401(k) or other employer-sponsored plans, just IRAs), then it gets a tad more complicated.

@Tanner Shore, great turnkey companies generally don’t sell dog poop properties. 

@Alan Faitel, what @Haley Gant said is correct.  Also, with the CARES Act, age 59.5 doesn’t matter for the purposes of taking the distribution (like it usually would prior to the CARES Act).  In other words, you could be age 25 and what Haley said is still correct.  The only other consideration, which is a conversation for you and your tax advisor, is whether or not to spread the taxes ratably over three years or to pay them over one tax year.  All else being equal, many people would probably want to spread them out, however, let’s say someone loses a job this year who normally has extremely high income and their income due to COVID-19 for 2020 is negligible, this might be a reason to consider realizing it in one year versus spreading it over three years (where, presumably, you may return to high income employment in years 2,3 and beyond and may not necessarily want to bump your income in those years by having chunks of the CRD in there).  Again, talk to your tax advisor about your specific situation to see what is best for you.  Good luck. 

@Charlie Anne, Mid South Home Buyers (MSHB) in Memphis, TN is the one I would recommend.  I would also somewhat disagree with
@Ali Boone .  The provider will make or break your investment, specifically the property management arm.  I would say the market and team are the most important and the property comes last.  With that said, it is absolutely critical that you do your due diligence on the property, run your own numbers (don’t rely solely on theirs), get a third party property inspection (best money you’ll ever spend - they’ll always find things that your turnkey provider should fix prior to closing at no cost to you), etc.  They’re both important, but I would start with the market/provider first and property last.  Do due diligence on both, but in that order.  I’d rather have good properties with great turnkey providers/great property management than great properties with bad providers/bad management.  My $.02. 

@Tanner Shore, I would go visit the providers personally.  Of the three providers I’ve visited so far, there are two I would never buy from (that if I hadn’t gone to visit personally I probably would have) and one that I now have four SFRs with.  Definitely worth your time.  

@Elle Stevenson, I’m a turnkey investor and go directly to the providers.  Just curious, why are you opposed to a Norada or other type of network?  I haven’t used them but my understanding is it’s a cost to the seller that supposedly doesn’t increase your cost as a buyer (but provides the benefits of having a dedicated contact and strong network behind you).  The reason I haven’t used a network like that is because 4/5 properties are with one very reputable provider and the other is in the same geographical area so if that new provider didn’t work out, I could roll that house into my existing portfolio with reputable turnkey provider.