Go to Jeff Salisbury LWGate Home Page.From: persfin-digest <owner-persfin-digest@shore.net>
Subject: persfin-digest V4 #118
Date: Fri, 16 Jan 1998 19:06:54 -0500 (EST)
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persfin-digest Friday, January 16 1998 Volume 04 : Number 118
IN THIS ISSUE:
ADVERTISEMENT: MCI FAX BROADCAST SERVICE
Mortgage refinance inquiry
Re: income from a foreign source, how to report?
Re: Computer upgrades on personal computers as business expense?
Re: Car Dealer Problem
Home Equity Loan for Car Purchase I just bought a new home with 5% down, and have made two mortgage payments. I'm sure that I have very little equity. I've heard that if you take a home equity loan to buy a car, the interest is deductible. My question is "how much equity do you need before you can take a home equity loan?"
Re: Saving Persfin Digests
Flex Spending Acct-Dependent Care
Re: transfer of 403B
Roth IRA for my son
Rental Property "Rules of Thumb"
Roth IRA for a College Freshman?
Online Banking and Bill PAyment......
Re: Quicken and Web Browsers
Re: Tax Help vs. Do-it-yourself
re: cuba and the pope
Dental Insurance?
question about short term capital gain distributions
Variable annuity, 401(k) or Roth IRA?
quicken & mutual fund returns
Re: Quicken & mutual fund returns
Re: Income Tax Web Site?
Re: Income Tax Web Site?
Re: Roth conversion restriction
choosing mutual funds?
Re: quicken & mutual fund returns
RE: buying tax liens
Roth IRA For 35 Year Old Son?
Re: Real Estate Estate Sales?
Fee Simple?
Re: State Taxes When Abroad?
RE: Roth conversion / 6.74% CD
Re: tax help vs do it yourself
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Date: Fri, 16 Jan 1998 18:28:53 -0500 (EST)
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------------------------------
Date: Fri, 16 Jan 1998 18:30:36 -0500 (EST)
From: ANDREA WELCH <ACE.AWELCH@MEMO.ACEHARDWARE.COM>
Subject: Mortgage refinance inquiry
Does anyone know of a formula for determining the benefits of a
mortgage refinance? I realize that variables such as current and
proposed interest rate, points, fees and expected years remaining
in the dwelling all need to be considered - but I'm not sure how
to weigh each item. Also, I realize that many web calculators
exist which will perform such a calculation. I'm not really
interested in having the work done for me, rather I'd like to know
what's involved in the calculation and do it myself.
Regards, Andrea Welch
------------------------------
Date: Fri, 16 Jan 1998 18:31:16 -0500 (EST)
From: Avrum Lapin <avrum113@cyberg8t.com>
Subject: Re: income from a foreign source, how to report?
>My Dad receives all his income from a foreign company that doesn't
>have a US presence. I'm currently preparing his return and I'm not
>quite sure how to handle the income reporting. The problem arises from
>the fact that he doesn't receive a W-2 form from his employer. I
>report the income as a W-2 income from a foreign source but am I
>supposed to fill out something like W-2 and enclose it with the
>return?
The question is answered in IRS publication 17 pg 50 and 56 which I will
paraphrase
If you are a US citizen or a resident alien you must report all income from
sources outside the US whether you reside inside or outside the US and
whether or or not you receive a Form W-2 or a 1099... This appies to earned
income (wages) amd unearned income (interest etc). Exclusions are allowed
if you reside outside the US. Note that you must pay self employemnt tax if
the services are performed in the US even if you are not self employed.
See also IRS Pub 54 - Tax guide for US citizens and resident aliens abroad.
Earned income (wages) go on line 7 etc. You will need Schedule SE for the
self employment tax Absent better advice I would attach a note explaining
the situation
Avrum Lapin
Upland., CA
------------------------------
Date: Fri, 16 Jan 1998 18:31:47 -0500 (EST)
From: Avrum Lapin <avrum113@cyberg8t.com>
Subject: Re: Computer upgrades on personal computers as business expense?
>as a faculty member at Texas A&M my main income is salary. I do,
>however, do several consulting jobs throughout the year which increase
>my income by several K. The one tool I use more then anything else is
>my personal computer. This computer was purchased using personal funds
>and is used for personal / educational (teaching & research) /
>consulting purposes. This year I upgraded the computer system
>purchasing a new hard disk, better sound card, more powerful CPU and
>recently after I noticed that a publishing/consulting project software
>was running slugish I purchased extra RAM.
>
If the extra hard drive etc is used exclusively for your consulting work it
is definitely deductable. The more you use your computer for personal use
the less likely a deduction would be allowable in an audit (having said
that I often wonder how businesses account for the solitaire game etc that
comes with most PC's ).
How to do the deduction: I presume that you are a 1099 consultant and file
Schedule C or C-EZ. C-EZ (usable if your expenses are less than $2500 and
have no deprecable items) has a place to deduct expenses and you can write
off those add ons as expenses along with stationary pencils etc. Schedule
C is for those with more complicated businesses.
As a W-2 employee you can deduct the add ons etc as small tools on Schedule
A subject to a deduction = 2% of AGI. I suspect that teachers who buy
reference books, mechanics and machinists who supply their own tools and
policemen who buy their own guns and uniforms (beyond their allowance) use
this route
Avrum Lapin
Upland., CA
------------------------------
Date: Fri, 16 Jan 1998 18:32:41 -0500 (EST)
From: Avrum Lapin <avrum113@cyberg8t.com>
Subject: Re: Car Dealer Problem
>A friend bought a car, and now has been called by the car
>dealership who determined that they double applied a rebate,
>and now wants the buyer to come back in and pay the difference.
>The buyer claims, "a contract is a contract" and is refusing to go.
>
>Discussion:
>Let's change the scenario a bit and suppose that a similar
>mistake was made in favor of the dealer, the rebate was not
>applied properly, or the monthly payment was miscalculated
>from the purchase price and interest rate. Would the buyer
>still be resigned to the fact that, "a deal is a deal"? Of course not.
>
>Now you could argue that the friend would not have bought the
>car at the properly computed price. So I think the dealership
>should be willing to work out some sort of deal, for example,
>keeping the same monthly payment but extending the term.
>
>kmealy@bigfoot.com
>Cincinnati, OH
The selling price of a car is a negotiated deal where the dealer usually
has the better negotiating skills. Calling the buyer back and announcing a
mistake in the selling price or the financing is a well known tactic
practiced by unscrupulus (sic?) dealers. Once the car is driven off the lot
the deal is done. If the dealer made a mistake he has the option of
refunding all money paid and taking back the car (rescinding the contract)
. In California (and perhaps elsewhere) a car taken back is a used car and
cannot be sold as a new car. If a dealer refuses to send the title
paperwork to the DMV then it is time report the dealer to the DMV.
Avrum Lapin
Upland., CA
------------------------------
Date: Fri, 16 Jan 1998 18:33:12 -0500 (EST)
From: "Robert Loeser" <Robert_Loeser@medec.com>
Subject: Home Equity Loan for Car Purchase I just bought a new home with 5% down, and have made two mortgage payments. I'm sure that I have very little equity. I've heard that if you take a home equity loan to buy a car, the interest is deductible. My question is "how much equity do you need before you can take a home equity loan?"
------------------------------
Date: Fri, 16 Jan 1998 18:34:02 -0500 (EST)
From: "Rodin, Barry H." <brodin@pica.army.mil>
Subject: Re: Saving Persfin Digests
Someone asked for the best way to save Persfin Digests.
Since I am only interested in certain parts of each digest,
I "cut and paste" which is a standard part of MS-Windows.
Just cut a part of the digest that you want to save, then paste it
into either a word processing program, a text processing program
such as Notepad (part of Windows), or your E-mail program.
You can save subsequent articles into the same file.
(For example, I am currently developing a file of info on the
Roth IRA.)
Barry
------------------------------
Date: Fri, 16 Jan 1998 18:34:22 -0500 (EST)
From: dmak@tma-net.org
Subject: Flex Spending Acct-Dependent Care
My employer's flexible spending account allows me to include
dependent care expenses for "pre-school" dependents. I'm having
trouble defining what "pre-school" is. Is kindergarten considered
pre-school? One HR person at my office says is it, another says it
is not!
Any ideas where I can get a definitive answer? Thanks!!
------------------------------
Date: Fri, 16 Jan 1998 18:35:06 -0500 (EST)
From: "L. Mccullough" <loulou@u.washington.edu>
Subject: Re: transfer of 403B
I am having a problem and would like to know if anyone has a suggestion
about what I can do about this situation.
My 403B plan at work was invested in Fidelity Select Computers...which has
been doing pretty well for awhile, however last fall it was suggested that
I move this money into Vanguard Index Fund.
I filled out my forms in early November; they were received by Vanguard
on November 26, so I assumed that everything was fine.
On January 2 I received a letter from Fidelity, dated 12/24/97 saying they
could not process this without my signature (my signature was on the form
submitted), so now it is 2 months later and still nothing has been done.
AND....look what has happened to Select Computer in the last two
months...my shares are now worth $20 less...and still going down.
Is there anything I can do about this? I have written the sec, they say
look for an answer in a month. I feel that Fidelity really drug its feet
on this one and I am just sick about it as this is my retirement money.
Any suggestions? thanks everyone.
Linda McCullough
------------------------------
Date: Fri, 16 Jan 1998 18:38:10 -0500 (EST)
From: owner-persfin-mod@shore.net
Subject: Roth IRA for my son
My son is 35 years old and is interested in starting a Roth IRA. He plans
to use the Moneypaper which can be used to set up DRIP accounts.
Participants pay a fee of $15 to $20 to set up an account which they can
add to by buying one or more shares at a time. These accounts cannot be set
up as a Roth IRA. Is there a way to use them and transfer later in the year
to a ROTH IRA? Is there another way to do the same thing.
My e-mail is sahumphrey@ucdavis.edu
------------------------------
Date: Fri, 16 Jan 1998 18:38:51 -0500 (EST)
From: Jacqueline.D.Richardson@Hitchcock.ORG (Jacqueline D. Richardson)
Subject: Rental Property "Rules of Thumb"
> Properties priced at 7-8 times the gross you expect to collect annually
> can work as an investment, but this is only a rule of thumb. You really
> need to "run the numbers" on the specific property in question.
- -------------
I recently saw the above "rule of thumb" in another news group and I am
interested in this "rule of thumb" and others like it. A year and a half ago I
purchaced my first two family and I am about to close on a 4 family. I usually
take the mortgage figure for the most I would pay for the house, income, other
expenses, vacancy rate, etc. and see if it will pay for itself (minus the
downpayment). If it does and I like the house, neighborhood, etc. etc., I make
an offer. BUT, I would very much like to see some "rules of thumb" for return
on investment and all the other things I hear the more sophisticated investors
talking about, but am totally in the dark about. If anyone has any I would
appreciate it if you would share them with me.
Thanks
jackie
Jacqueline.D.Richardson@Hitchcock.org
------------------------------
Date: Fri, 16 Jan 1998 18:40:17 -0500 (EST)
From: flynndj@juno.com (David John Flynn)
Subject: Roth IRA for a College Freshman?
How about some suggestions on ROTH IRA.? My 18 year old - college
freshman - make about 400- babysitting last year. File, take a
nondeductible IRA, convert to ROTH? Sounds like a good way to set up a
ROTH IRA and then add another 400- this year. Any pros or cons??
dave flynn
flynndj@juno.com
------------------------------
Date: Fri, 16 Jan 1998 18:40:46 -0500 (EST)
From: Nikhil Subhash Sarpotdar x5-4962 RN3-16 <nsarpotd@td2cad.intel.com>
Subject: Online Banking and Bill PAyment......
Hi!!
Happy New Year to all of you.
I was wondering about the pioneering people's opinions about Online
Banking and Online Bill payment. How would you rate it as regards
a) Convenience
b) Security
c) Ease
d) Control
We have had a discussion on this and SFNB online bank has come up a number
of times in the past , but I thought I should check with you people again.
Thanks for any inputs and as always Ira and rest of you keep up the great
work.
Take Care,
Nikhil
------------------------------
Date: Fri, 16 Jan 1998 18:42:12 -0500 (EST)
From: varsh <varsh@concentric.net>
Subject: Re: Quicken and Web Browsers
Steve Foulks <steve_foulks@up.bresnan.net> wrote:
>This doesn't make any sense. Microsoft Explorer has always been part of
>Windows NT and Windows 95. Do you mean Internet Explorer
The program you refer to is "Windows Explorer", right? :)
Regarding the browser, Intuit included (with Quicken98) Internet
Explorer v.3, which is already outdated.
If anyone wants to run Q98 with Netscape, Intuit suggested the following
procedure, which apparently works, but made me laugh anyway:
- -install Q98 with IE
- -uninstall IE (sic!)
Microsoft's "Uninstaller" leaves enough of IE behind, so Q98 is
satisfied, and you can happily point Q98 to your browser of choice. Neat,
isn't it?
- -Boris (user of Quicken6+Netscape4)
Dover,NH
------------------------------
Date: Fri, 16 Jan 1998 18:42:48 -0500 (EST)
From: varsh <varsh@concentric.net>
Subject: Re: Tax Help vs. Do-it-yourself
> 1997 will be more complicated
> because I bought a home and can itemize deductions for the first time.
<...>
> But does it pay to use an accountant?
Laine,
If itemized deductions is the only complication, it's no more hard to
figure out than 1040 with standard deductions. Just one more page to do
(Schedule A)...
Read instructions now, and chances are you will find it quite managable
task.
Good luck,
- -Boris
Dover,NH
------------------------------
Date: Fri, 16 Jan 1998 18:45:37 -0500 (EST)
From: David Martin <dmartin@seabreeze.hc.ti.com>
Subject: re: cuba and the pope
>Hello - I am Catholic, and I am going to see the Pope in Cuba. I was told
>that you can't use a VISA Card that is credited to a USA bank there, or for
>tha
If you are an American citizen, you may not be allowed to go
there. I don't know what the rules are these days, but I seem to
remember that the US government doesn't like its citizens to go to
Cuba.
>Since I can only use American Dollars there, it frightens me. What happens
>if for any reason, I lose my money, or it is stolen, or for what ever reason
>it's gone - what will I do? I need to find some way to get money to me in
> Cuba in case of and emergency. I don't believe that the Pope will save me in
> that regard - do you?
The easiest solution is to visit the Pope in Rome instead.
-David Martin
------------------------------
Date: Fri, 16 Jan 1998 18:46:01 -0500 (EST)
From: Nosmo King <royalty@tir.com>
Subject: Dental Insurance?
I'm looking for a good comprehensive dental plan for my family of three.
Any company recomendations, or suggestions of what to look for in a good
plan will be very helpful. Have not been very successful with web
searching. Any help will be sincerely appreciated. Thanks.
Gary
------------------------------
Date: Fri, 16 Jan 1998 18:46:30 -0500 (EST)
From: David Martin <dmartin@seabreeze.hc.ti.com>
Subject: question about short term capital gain distributions
Has anyone looked at the 1997 tax forms yet as far as short
term capital gain distributions from a mutual fund? As far as I can
tell, capital gain distributions from a mutual fund are reported on
Schedule D on line 13. However, line 13 is in the long term capital
gains section, and the form doesn't seem to distinguish between short
and long term capital gains. Does this mean that all capital gains
distributions are now taxed as long term capital gains?
- -David Martin
------------------------------
Date: Fri, 16 Jan 1998 18:48:07 -0500 (EST)
From: "Blair, Frank" <fdb@plcmc.lib.nc.us>
Subject: Variable annuity, 401(k) or Roth IRA?
Financiers,
I am 40, homeowner w/mortgage, married with three kids, in the 15% tax
bracket. I have about $10,000 in a non-qualified variable annuity. I
originated this annuity in 1988 when I worked for a non-profit
organization that had (at that time) no other tax-deferred retirement
planning vehicle. My contributions (about 6K) were made after taxes, but
all earnings (about 4K) are tax deferred.
I no longer work for the non-profit and have made no contribution to this
account for seven years (which means that the company issuing the policy
will not deduct for a withdrawal.) I currently earn about 30K/year (gross).
I currently work for a organization with a mandatory pension plan. They
deduct 6% and, after five years match with 4%. I should become vested
early in 1999. A 401(k) is also available to me (with no matching), and
I have been using it.
If I understand the Roth IRA correctly, it seems like my best vehicle for
future retirement planning.
I have two questions:
Should I stop contributing to the 401(k) and instead direct retirement
savings to the Roth IRA?
Is it possible or advisable to move the funds currently in the Variable
life account to a Roth IRA? How would I go about doing so?
Thanks for any advice you are able to offer.
------------------------------
Date: Fri, 16 Jan 1998 18:49:30 -0500 (EST)
From: "J.D. Baldwin" <baldwin@netcom.com>
Subject: quicken & mutual fund returns
Robb Warren <rwarren@mis.net> wrote:
> I've noticed many postings regarding Quicken, and since they now only
> give support through a 900 number for v6 for Windows, I thought maybe
> a reader could help. Q6 sees any reinvestment from dividends (or other
> gains) as ADDED money i.e. I buy $10K of a fund, and to simplify, lets
> say the fund goes up 20% and distributes it all as a dividend. I post
> my $2K dividend as an automatic reinvestment. A (very) little math
> shows I've made 20%. But Q6 says I have invested $12k (apparently
> ignoring the fact that the $2k came FROM the fund), and the value of
> my investment is $12K so my return is ZERO! I can trick it by adding
> shares at no cost, but then I have no record of my reinvestment cost
> for tax purposes. Has anyone noticed this, or am I doing something
> wrong??
I don't know what the "textbook" answer is, but here's what I do:
1. Post the $2K as "Dividend Income" and just turn it into "Cash"
sitting there in the account. Thus, the value of the account
increases by $2K and this is reflected (rightly) as "income."
2. Now use the $2K of "cash" to "buy" those $2K worth of shares.
The net effect on the worth of the account is zero, and now the
account reflects the correct number of shares of that fund.
------------------------------
Date: Fri, 16 Jan 1998 18:50:01 -0500 (EST)
From: kafer@crl.com
Subject: Re: Quicken & mutual fund returns
Rob--
Quicken calculates correctly. Your example is confusing you. Let's say you
bought 1,000 shares at $10 each, total $10K investment. The fund makes 20%
return. Now 1,000 shares are worth $12 each, total $12K. When the fund pays
out the full 20% as a dividend, the original shares drop in price by the
amount of the distribution, $2K in your example. After the distribution,
you have your original 1,000 shares worth $10 each for $10K value, plus $2K
in cash (even if only momentarily). Your fund automatically reinvests the
$2K at the Net Asset Value of the fund, $10 per share, buying 200 shares.
You now have 1200 shares worth $10 each for $12K. That is still a 20%
increase over what you started with. However, the price you paid for the
original shares is $10K, and you paid $10 for each of the new shares, total
$2K. Thus, your total cost for the 1200 shares is $12K.
Hope this helps.
Frank
------------------------------
Date: Fri, 16 Jan 1998 18:50:35 -0500 (EST)
From: Rich Carreiro <rlcarr@animato.pn.com>
Subject: Re: Income Tax Web Site?
And of course you can get the current year's form from the IRS web
site (www.irs.gov).
Rich Carreiro
rlcarr@animato.pn.com
------------------------------
Date: Fri, 16 Jan 1998 18:51:00 -0500 (EST)
From: Rich Carreiro <rlcarr@animato.pn.com>
Subject: Re: Income Tax Web Site?
> Is there a site on line, or can someone send me the list that
>shows what tax bracket you are in? You know, you make so much so you are
>in the 15%, etc...
Just wait for your 1040 to show up in the mail. The last page usually
has the tax brackets for the current year.
And just to nitpick :-), your tax bracket is determined by your taxable
income, not "what you made."
Rich Carreiro
rlcarr@animato.pn.com
------------------------------
Date: Fri, 16 Jan 1998 18:51:26 -0500 (EST)
From: Rich Carreiro <rlcarr@animato.pn.com>
Subject: Re: Roth conversion restriction
[Disclaimer: this is my opinion, not advice. I am not a professional.]
> There is some sort of $100,000 threshold on Adjusted Gross Income
>which must be considered when rolling an IRA into a Roth IRA in 1998, but
>everything I have read has been fuzzy on this cap.
Then you need better reading material :-) :-). But seriously, I
suggest www.rothira.com and misc.taxes.moderated.
> One interpretation: if a couple has a 1998 AGI more than $100K,
>neither could convert an IRA to a Roth IRA, even if each had an income
>below the $100K threshold. I would rather have a different interpretation:
That is correct. The limit is $100K of modified AGI (i.e. the
conversion income itself is not included in the calculation) for
filing singly, married filing jointly, and $0 (no typo) for married
filing separately.
>if each were to compute an individual AGI and it turned out less than 100K,
>then each person could convert.
Unfortunately, your interpretation is wrong :(. Another way that the
tax laws favor divorce 1/2 :-)
Rich Carreiro
rlcarr@animato.pn.com
------------------------------
Date: Fri, 16 Jan 1998 18:51:51 -0500 (EST)
From: Ryo Imamura <imamura@elwha.evergreen.edu>
Subject: choosing mutual funds?
How do you folks go about choosing a mutual fund? Do you actually analyze
the individual investments or look at the past profit rates? About 3
years ago, I put $10K a piece into a CGM mutual fund and an Invesco one.
Today the CGM fund is worth a little more than 15K whereas the Invesco
fund is worth more than 18K. I have no idea why there is such a
disparity. Should I move my CGM money into the Invesco fund or let them
ride in the hopes that they will kinda even out in the long run? I
initially chose those two funds because of a rating comparison in an
investment magazine. I wonder if I am especially unknowledgeable about
investments relying on minimal information and blind faith or if I am
like most mutual fund investors who have been riding out the wonderful
wave of profits.
Ryo Imamura
imamura@elwha.evergreen.edu
------------------------------
Date: Fri, 16 Jan 1998 18:53:43 -0500 (EST)
From: Rich Carreiro <rlcarr@animato.pn.com>
Subject: Re: quicken & mutual fund returns
>reader could help. Q6 sees any reinvestment from dividends (or other
>gains) as ADDED money i.e. I buy $10K of a fund, and to simplify, lets
As well it should. When you reinvest distributions, your basis in
the does indeed increase.
>say the fund goes up 20% and distributes it all as a dividend. I post my
>$2K dividend as an automatic reinvestment. A (very) little math shows
>I've made 20%. But Q6 says I have invested $12k (apparently ignoring the
^^^^^^^^
I don't have Quicken, so I can't check this myself -- what do you (and
Quicken) mean by "invested" in that sentence? If Quicken means "tax
basis", then it is absolutely correct. If it means "cash flows into
the portfolio" then it is of course wrong.
>fact that the $2k came FROM the fund), and the value of my investment is
>$12K so my return is ZERO! I can trick it by adding shares at no cost,
^^^^^^
What do you (and Quicken) mean by "return" in that sentence? If Quicken
means "unrealized capital gain", then again, it is absolutely correct.
If Quicken means "total return" then it is of course wrong.
Rich Carreiro
rlcarr@animato.pn.com
------------------------------
Date: Fri, 16 Jan 1998 18:54:39 -0500 (EST)
From: "Stephan Iscoe" <stephan@mail.org>
Subject: RE: buying tax liens
Peter Palma asked about buying tax liens as an investment and
the Ted Thomas infomercial:
Peter, I don't know about Thomas but I do know that you will get
great info from Joel Moskowitz' book, The 16% Solution, Andrews&McMeel,
US$24.95.
A couple of things you'll find out is that even if the lien
isn't contested it can take a lot longer than a year before you get title;
also you'll discover that 16% is the _exception_ for state-by-state
returns...they actually range from 6%, Alabama, to 50%, Michigan!
Good Luck,
Stephan Iscoe
Visit http://www.LinktoSuccess.com
------------------------------
Date: Fri, 16 Jan 1998 18:55:46 -0500 (EST)
From: shirley humphrey <sahumphrey@ucdavis.edu>
Subject: Roth IRA For 35 Year Old Son?
My 35-year old son is interested in investing in a Roth IRA. He can do DRIP
investing through the Moneypaper, but they do not establish Roth IRAs.
Basically you pay a fee of $15 or $20 to purchase the first share of stock
which is transferred to the company you invest in or its holding agent.
Small investments can be made throughout the year. Is there any way to
convert such an account to a Roth IRA at the end of the year? Is anyone
aware of a DRIP investment plan that can be set up as a Roth IRA?
------------------------------
Date: Fri, 16 Jan 1998 18:56:51 -0500 (EST)
From: BOB FORD <BOB_FORD@compuserve.com>
Subject: Re: Real Estate Estate Sales?
>From: "Gary M. Oppenheimer"
>My wife and I are starting to look for a vacation home (in NJ, NY or CT),
>for both pleasure and as an investment.
>Is it possible to get purchase furnished homes in estate sales? Where
>does one get info on this?
GARY
Possible but very unusual. Usually the relatives will clean out the house
of everything that is not bolted down. If a person dies with no will and
no relative you might find a home that is furnished but that would be a
rare case.
BOB FORD
BOB_FORD@COMPUSERVE.COM
Editor 57-56-55 CHEVY LIST
------------------------------
Date: Fri, 16 Jan 1998 18:58:05 -0500 (EST)
From: BOB FORD <BOB_FORD@compuserve.com>
Subject: Fee Simple?
(THE USUAL WARNING)
I am not an attorney and the following is not legal advice. It is just my
opinion. It is based on my experience in California. The laws of other
states may be different.
>I was reading through my deed and saw several references to the property
>being held in "fee simple." Could someone tell me what this is?
>George Kolb
FEE SIMPLE is for ownership of real property. Ownership of real property
confers on the owner certain rights. Fee simple ownership is the highest
degree of ownership available. It is without time limit and can be
transferred or inherited.
BOB FORD
BOB_FORD@COMPUSERVE.COM
Editor 57-56-55 CHEVY LIST
------------------------------
Date: Fri, 16 Jan 1998 18:59:05 -0500 (EST)
From: David Martin <dmartin@seabreeze.hc.ti.com>
Subject: Re: State Taxes When Abroad?
Stacy asks if she needs to pay Maryland state income taxes even though
she lives and works abroad.
I have some friends who work abroad who said that their
accountant said that they don't need to pay state income taxes. Your
case may be different.
For the future, you could just tell your employer and Maryland
that you have moved to Texas or one of the other states which doesn't
have a state income tax. Then, it isn't an issue.
-David Martin
------------------------------
Date: Fri, 16 Jan 1998 19:00:10 -0500 (EST)
From: JONESW@CCSUA.CTSTATEU.EDU
Subject: RE: Roth conversion / 6.74% CD
David Stone says that the rule about the 100K limit on AGI for Roth
conversions is fuzzy. You can find the legislation itself at
http://www.irs.gov/hot/tax-law.html
It says that the limit on the AGI (modified to not count the amount
converted from an ordinary IRA to a Roth IRA) is 100K for singles filing
separately, 100K for a married-filing-jointly return, and ZERO for
a married-filing-separately return.
It is not fuzzy or subject to interpretation. It is crystal clear.
Whether it is fair or logical is an entirely different question.
Read it and weep.
Someone else asked whether a bank CD at 6.74% for 10 years was a good idea.
Well, 10-year treasuries are only getting around 5.5% these days, so if
you have a significant amount of money invested in bonds that you do not
expect to need for another 10 years or so, it would make very good sense
to shift it over there, AFTER you make sure it is FDIC insured.
Bill Jones
------------------------------
Date: Fri, 16 Jan 1998 19:01:02 -0500 (EST)
From: "L. Chen" <am302@FreeNet.Buffalo.EDU>
Subject: Re: tax help vs do it yourself
> Usually our CPA optimizes the income to reduce the taxes (who gets
> what deductions, who gets which investment income, etc.) That's
> something I know I would never be able to do and that saves us some
> money too.
Is that optimization between parents and children? Or between spouses? If
between spouses, do you and your wife file separate returns?
Chen
------------------------------
End of persfin-digest V4 #118
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