Go to Jeff Salisbury LWGate Home Page.From: persfin-digest <owner-persfin-digest@shore.net>
Subject: persfin-digest V4 #129
Date: Wed, 25 Feb 1998 21:41:26 -0500 (EST)
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persfin-digest Wednesday, February 25 1998 Volume 04 : Number 129
IN THIS ISSUE:
ADVERTISEMENT: LAN ACCESS TO MCI MAIL
Tax question: Renting out a room, and later selling the house
Re: How to Adjust Cost Basis of Condo Rental?
Which Form To File For Child's Unearned Income?
viatical settlements?
Re: Tax Issues for Unmarried Couples
Re: Where to order checks?
Living in Oz
Re: removing 20% withholding for IRS?
Re: Tax Issues for Unmarried Couples
Re: Getting Checks Printed
unmarried couples and taxes
Rent vs. Buy a house (??)
Re: Living Trust
Viatical Investments?
RE: removing 20% withholding for IRS?
Re: Dealer Financing
City taxes, inter-office mileage
Any Way To Recover Philadelphia Withholding Taxes?
Maximum Age to obtain Mortgage? 52?
Is it worth to subscribe magazine upfront?
Re: Removing 20% Withholding
Re: living trusts
Will IRS Notice I Stopped Renting My House?
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Date: Wed, 25 Feb 1998 21:09:44 -0500 (EST)
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------------------------------
Date: Wed, 25 Feb 1998 21:10:44 -0500 (EST)
From: Jim BEAVENS Heather Beavens <beavens@teleport.com>
Subject: Tax question: Renting out a room, and later selling the house
Here's another question to keep all of you aspiring tax pros out there on
your feet. =) We sold our house this year, and it seems that I have a bit
more work to do on my taxes than I was bargaining for. Here's a brief
history of the situation:
1) Purchased home in August of 1995.
2) In June of 1996, we rented out a room to an intern at work for one
month. On my 1996 return, I filed a schedule E with only the one
month's income, and no expenses (I didn't charge for utilities, and
I didn't think it was worth it to deal with depreciation, etc).
3) From January 18, 1997 to August 3, 1997, we rented out the room to
another intern. This time I collected 20% of the variable monthly
utilities (electricity, gas, water, plus 100% of all long distance
calls). The 20% value was arrived at based on the fact that we had a
total of 5 bedrooms.
4) On October 20, 1997 (more than two years after purchasing it), we sold
this home for a ~$20,000 gain (not including realtor fees and other
expenses), and bought another home.
After reading publications 523 and 527, and the instructions for Forms
2119 and 4797, I'm a bit confused as to what I need to do. What I would
_like_ to do is simply report the income and deduct the utility expenses
on Schedule E, claim 100% of interest and tax deductions on Schedule A,
and claim the full 250k/500k exemption on the sale of the home on Form
2119.
However, it appears that what I _need_ to do is divide all household
expenses (utilities, taxes, mortgage interest, depreciation <ugh>, etc)
between the business and personal use of the home (which would come out to
about 10% based on 20% usage for 6 months), and report the sale of this
10% on Form 4797 (not that I can even remotely understand how I'm supposed
to do this based on the instructions for this form, but maybe that's
because I'm crazy enough to try and interpret a tax form at 2am ;). The
remaining 90% of interest and taxes would be deducted on Schedule A. It
appears that I would still get the full exemption on the sale in the end,
since this "business" existed for less than 2 out of the last 3 years (at
least I think it did...unless partial use during a year counts as a year's
worth).
Am I interpreting this right? Is there any chance I could report
everything as I described first above? Does it make any difference that
the room was not being rented at the time of sale? Any further guidance
on how to handle this situation would be much appreciated.
Thanks,
Jim
------------------------------
Date: Wed, 25 Feb 1998 21:11:03 -0500 (EST)
From: Rich Carreiro <rlcarr@animato.pn.com>
Subject: Re: How to Adjust Cost Basis of Condo Rental?
[Disclaimer: this is my opinion, not advice. I am not a professional.]
> A friend of mine rented his condo after he moved to another house. He
>place the property in service in 1985 and took depreciation and operating
>expenses as deductions.
>
> This year, he sold the condo. Should he adjust the basis downward by
>teh amount of depreciation he took?
Absolutely. In fact, he'd have to adjust the basis downward by the amount
of depreciation even if he didn't take it. Assuming he sells at a gain
over the adjusted basis:
* If the sale price is less than the basis on the day the property
became a rental (remember, when a personal residence is converted
to a rental, basis is the lower of basis as a personal residence or
FMV when converted) the tax is 25% on the difference between proceeds
and the adjusted basis (this is the recapture of depreciation).
* If the sale price is more than the original basis, the difference
between proceeds and original basis is taxed as capital gain and the
rest gets the 25% recapture tax.
>Does he have to recapture the expense deductions as well?
No, though there may be a different rule for Section 179 expenses.
Rich Carreiro
rlcarr@animato.pn.com
------------------------------
Date: Wed, 25 Feb 1998 21:11:36 -0500 (EST)
From: Ken Stone <krstone@mindspring.com>
Subject: Which Form To File For Child's Unearned Income?
I have a 5yr old with an investment account for college education. In
addition to dividends and capital gains distributions from securities, two
stocks in his account were sold. One at a gain of $1200 and the other at a
loss of $780. Can I file Form 8814 (as I have in the past) or must I use
Form 8615? If I use 8615 does that mean that I must file a completely
separate 1040 for the child?
Thanks in advance,
Ken Stone
------------------------------
Date: Wed, 25 Feb 1998 21:12:04 -0500 (EST)
From: "Leo Beilin" <leo.beilin@pobox.com>
Subject: viatical settlements?
Does anybody on the list have any experience investing in these? Know of any
legitimate brokers in this vehicle?
Know of any websites or print material to find out more about this?
Thanks
------------------------------
Date: Wed, 25 Feb 1998 21:12:48 -0500 (EST)
From: Steve Foulks <steve_foulks@up.bresnan.net>
Subject: Re: Tax Issues for Unmarried Couples
>From: Ravi Chandran <rchandra@trc.tellabs.com>
>
>I have some general questions on how unmarried couples living together can
>save on taxes:
>
>1. If the couple owns a home jointly, how must the mortgage interest
>deduction be shared?
If the couple jointly owns the home, and are jointly liable for the debt,
then either debtor can claim a deduction for the interest that he/or she
paid. If the man pays all of the interest, only he will be able to claim
the deduction.
>
>2. The mortgage interest statement from the bank has only one person's
>name and social security number on it. I think the IRS also receives
>only one person's name in the statement that the bank reports to it.
>If the other co-owner also takes his/her share of the interest deduction
>although there will be no documentation to support it at the IRS,
>will he/she be likely to be audit bait?
I own stock jointly with someone other than my spouse. The 1099 comes to
me with my SS#. What I do is to report the whole dividend on my tax return
and subtract one half of the dividend, which I indicate will be reported
on the return of so and so along with their SS #. It works quite well.
It generally wouldn't pay for you to split the interest deduction anyway.
The interest should be paid by the highest tax bracketed person, since they
will receive the greatest tax benefit. If the highest tax bracketed person
pays all of the deductible expenses, then the other party can use the
standard deduction.
>
>3. Concerning joint bank accounts/brokerage accounts: What are the rules
>on reporting the interest/dividends/capital gains/losses? The statements
>from such accounts often only have the primary account-holder's
>name/social security number reported on the 1099's.
This depends upon state law and how the joint accounts were created. One
thing is sure - if the person who's SS# appears on the 1099 doesn't report
the full dividends, interest, etc., there will most assuredly be a
"correspondence audit".
>
>4. It is quite common that one person makes significantly more than the
>other. If the couple have a shared brokerage account where the stocks have
>increased in value, can the stocks be transferred (subject to say the
>$10,000/year gift limit) to the lower tax bracket person's separate
>account and then sold? Would this violate anything?
If you are real aggressive, why not have the high tax bracket taxpayer sell
their securities at an artificially low price creating a big loss (subject
to their ability to use the loss) to the low tax bracket, and then let the
low tax bracket sell it at the market price, recognizing the gain. This is
perfectly legal, although the courts must negate the first transaction as a
tax sham.
If you want to avoid some of the problems why don't you create a
partnership, S-corp. who owns these assets and each of you become partners.
This would eliminate some of your concerns.
>
>5. Are there any other ideas/methods on how savings in taxes can be
>achieved for unmarried couples in different tax brackets (other than by
>marriage and hence joint filing of taxes)?
Being married is really a foolish maneuver from a federal income tax view
in all cases. I am sure that someone will point out that I am wrong, but
I am not. Serious tax planners can use the concept of marriage, then
divorce as a method that can be utilized by couples with disparate income
to really reduce taxes, but they must be pretty secure in their personal
relationship.
There are so many ways that you can cut your taxes by being single, rather
than being married. They are a function of your personal situation. I
wrote a research paper in the early 1980's on this topic and found that
married couple paid on average 30% more in federal income taxes than if
they were single, and arranged their financial affairs in the most
expeditious way.
Steven M. Foulks, CPA, CFP, PhD
Professor of Accounting & Finance
Northern Michigan University
<http://www.acs.nmu.edu/instruct/business/sfoulks/default.html/>
------------------------------
Date: Wed, 25 Feb 1998 21:13:18 -0500 (EST)
From: Bill La Mar <blamar@dialnet.net>
Subject: Re: Where to order checks?
> Does anyone have a list of personal bank check vendors?
> I need a new batch, and don't want to pay bank inflated prices.
Check out this URL. Good selection and lowest prices I have found for
reorders.
Reorders are the same price as first order which competes with first order
discount pricing found many places.
http://www.artisticgreetings.com/cgi-bin/otfpage/agihome.otf
- --
Bill La Mar, Springfield, MO Do you know someone who needs to trade a
stream of income such as lottery winnings, annuity, real estate
mortgage, etc.; for cash? 417/831-2025, Fax 417/864-2895,
blamar@dialnet.net, My prayer is that you also have a GREAT DAY!
------------------------------
Date: Wed, 25 Feb 1998 21:13:52 -0500 (EST)
From: "Abbott" <labbott@mho.net>
Subject: Living in Oz
Hello,
> >I am going to be moving to Queensland, Australia to work for at
> >least the next two years. Does anyone have any advice regarding
> >working/living abroad, handling taxes, opening bank accounts in
> >Australia, buying property etc. Any suggestions will be
> >appreciated!
Lucky you! Enjoy it while you are there.
My husband and I just returned from 5 years there (in NSW).
> income/salary there in Oz may be taxed--unless you meet some
> unusual conditions (ie, going as an invited professor/teacher and
> thus providing for the public good. (Some countries have a
> reciprocal agreement with the US that they will not tax such a
> person who has come to work for a certain period--in the case of
> Japan and Korea this is two years, so if you were going to one of
> these places your income would basically be tax-free for that
> period. Check whether Oz has this kind of tax treaty with the US
Oz taxes you, there is no exemption like this or at least the
accountants we hired didn't know about it and the money they made,
they should have known about it!
To find out more about your obligation to the USA for taxes, go to:
http://www.irs.ustreas.gov/prod/tax_edu/teletax/index.html
330 is the magic number to get exempted from USA taxes. Read
topic 850 and 854 especially, that should answer most of your
concerns.
We found we could rent much more cheaply than we could buy, we wanted
to be by the harbour in Sydney and later by the ocean in the beach
suburbs, we could NEVER have bought the quality units that we were
able to easily rent. Rental property and your company automobile are
the main tax breaks in Oz, about the only ones unless you also run a
small business. Homes are not a tax break for them as they are for
us.
If you would like to chat further about Oz, offlist please feel free
to email me:
joella@rocketmail.com
Cheers,
Joell
------------------------------
Date: Wed, 25 Feb 1998 21:14:16 -0500 (EST)
From: Rich Carreiro <rlcarr@animato.pn.com>
Subject: Re: removing 20% withholding for IRS?
[Disclaimer: this is my opinion, not advice. I am not a professional.]
>One of my brokerage/mutual fund accounts has been withholding 20% for the
>IRS for ages. I've been a better citizen and have filed properly for 4-5
[snip]
>miss the mark). Can anyone tell me what form(s) to ask for, and whether it
>should be the IRS rather than the fund company that I should be talking to?
I believe the W-9 is the form you need. This is the form where you
certify the correctness of your SSN and/or certify that you are or are
not subject to backup withholding. If the IRS has notified you that
you are no longer subject to backup withholding (you may want to check
with them and get the official word) you can truthfully fill in the
W-9 stating that you are not subject to the withholding and send it to
your broker and see what happens from there.
You may want to consult with a pro to see exactly how to find out
officially whether or not you've really been released from the backup
withholding requirement, since lying (even unintentionally) on W-9 is
probably not a good idea.
Rich Carreiro
rlcarr@animato.pn.com
------------------------------
Date: Wed, 25 Feb 1998 21:14:58 -0500 (EST)
From: Rich Carreiro <rlcarr@animato.pn.com>
Subject: Re: Tax Issues for Unmarried Couples
[Disclaimer: this is my opinion, not advice. I am not a professional.]
>I have some general questions on how unmarried couples living together can
>save on taxes:
>
>1. If the couple owns a home jointly, how must the mortgage interest
>deduction be shared?
According to who pays it (this is true of married filing separately, as
well). So if one person pays it, only they get the deduction. If they
pay it equally, they each get half the deduction. If one pays 70% and
the other 30%, the deduction is split 70/30 and so on.
>2. The mortgage interest statement from the bank has only one person's
>name and social security number on it. I think the IRS also receives
>only one person's name in the statement that the bank reports to it.
>If the other co-owner also takes his/her share of the interest deduction
>although there will be no documentation to support it at the IRS,
>will he/she be likely to be audit bait?
Well, it's not like you have any choice in the matter. The law
requires each of you to report the income and expenses that belong
to each fo you. How a 3rd party reports that income or expenses to
the IRS is irrelevant. If you only paid 50% of the mortgage payments
you may not show the whole thing on your tax return even if the 1098
from the bank only has your name and SSN on it. And why won't there
be any documentation to support the split? You both do keep your
cancelled checks? The records of which account(s) the payments came
from are your documentation to support it.
Now, you may want to speak to a tax pro about the best way to show
this on your returns (i.e. do you show the full reported amount and
then subtract out the part that belongs to the co-owner? Do you only
report your part in the first place, and so forth), but you have no
choice on the bottom line of what goes on your returns.
>3. Concerning joint bank accounts/brokerage accounts: What are the rules
>on reporting the interest/dividends/capital gains/losses? The statements
>from such accounts often only have the primary account-holder's
>name/social security number reported on the 1099's.
The rules are the same as above. The income gets apportioned to the
joint holders in proportion to their interest in the accounts. If
your share of the joint account is 80%, 80% of the various types of
income that account throws off is yours. You may wish to consult a
pro on how best to show this on your return (i.e. show the whole thing
and subtract out the co-holder's part? Issue a nominee 1099 to the
co-holder?, etc.). But again, you must report the income the way the
law says regardless of how the payor fills out the 1099.
>4. It is quite common that one person makes significantly more than the
>other. If the couple have a shared brokerage account where the stocks have
>increased in value, can the stocks be transferred (subject to say the
>$10,000/year gift limit) to the lower tax bracket person's separate
>account and then sold? Would this violate anything?
It depends. If it is a legit gift -- i.e. no strings attached
whatsoever -- you are fine. If the transfer is being made subject to
an understanding that the transferee will pay the cash back into the
joint account after selling, there would be a problem since that would
not be a gift under the law (though admittedly it would be unlikely for
the IRS to discover this).
>5. Are there any other ideas/methods on how savings in taxes can be
>achieved for unmarried couples in different tax brackets (other than by
>marriage and hence joint filing of taxes)?
In general I'd say have the person in the higher tax bracket pay the
deductible expenses, since the deduction will be worth more to him.
Rich Carreiro
rlcarr@animato.pn.com
------------------------------
Date: Wed, 25 Feb 1998 21:15:59 -0500 (EST)
From: "Rodin, Barry H." <brodin@pica.army.mil>
Subject: Re: Getting Checks Printed
Someone asked about where to get checks printed for their bank account.
I have used Current, Inc. for several orders, and am happy with
both their price and service.
Call (800)204-2244
Barry
------------------------------
Date: Wed, 25 Feb 1998 21:16:26 -0500 (EST)
From: David Martin <dmartin@seabreeze.hc.ti.com>
Subject: unmarried couples and taxes
Ravi writes:
>I have some general questions on how unmarried couples living together can
>save on taxes:
Someone once recommended the book "Financial Self Defence for
Unmarried Couples" by Larry M. Elkin.
-David Martin
------------------------------
Date: Wed, 25 Feb 1998 21:17:09 -0500 (EST)
From: John Wallace <JWallace@karta.com>
Subject: Rent vs. Buy a house (??)
I wonder if anybody would care to share their opinions about the pro's &
con's of renting vs. buying in today's economy. I had always heard
that, traditionally, the "rule of thumb" was that you came out ahead by
buying if you planned to stay in the same city for more than 5 years,
but that you were better off to rent if you planned to move within less
than 5 years. Is that still considered true today ? Also: To get a
mortgage on a house in the $60K to $100K price range, how much cash does
a person typically need to have on hand for down payment, lawyer fees,
title insurance, mortgage fees, inspectors, etc. etc. ?
I should explain the background of my question: My wife is desperate to
buy instead of renting, but I am reluctant to do so (even though I have
a well-paying job, $60K ) because I am the sole breadwinner for the
family and will remain so for at least two more years, until she
graduates from college. And, it just so happens that employment
opportunities for my professional specialty are VERY limited in the city
where we are living (San Antonio, TX); if I lost my present job for any
reason, I would almost certainly have to move to another city to find
new employment.
Thanks in advance, John, jwallace@karta.com
------------------------------
Date: Wed, 25 Feb 1998 21:20:15 -0500 (EST)
From: BOB FORD <BOB_FORD@compuserve.com>
Subject: Re: Living Trust
>Hi,
>A lot of seminars or workshop talk about the benefit of establishing a
>living trust. What is living trust and what does it really do
>What is the tax consequence to the present income tax and
>future estate tax?
>I need to understand it more. Can anyone shed me some light?
>Thanks
>Mike
MIKE
(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.
A trust is something that can be created to own things. A living trust has
many uses but the most popular use of a living trust is to avoid probate.
When a person dies, everything that person solely owns must go through
probate. Any assets that a dead person owned must be transferred to
someone else. The process of doing that transfer is called probate.
Probate can be a costly process and take a long time and it is public.
You can avoid all of the costs and other problems of probate by not owning
anything when you die. One way you can not own anything when you die is
to transfer the ownership of everything you own to a living trust.
If you wish, in a living trust, you can be the trustee which means you
control all of the assets the trust owns yet you are not personally the
owner of the assets. On your death the successor trustee disposes of the
assets as you have directed in the trust. No court proceedings are
needed.
If you are married and your assets are over $600,000 a properly constructed
trust MAY save on federal estate taxes. This $600,000 number will be
adjusted upward for the next 10 years.
I am not a tax pro but I don't think a living trust can save on income tax
either state or federal. Hopefully, a tax pro on this list will correct me
if I am wrong. Also, if you are married, your spouse usually must agree
to put your assets in a living trust. This is because the typical married
couple own everything in Joint Tenancy. In my state, all joint tenants
must agree on what can be done with the assets they own. As a side note,
joint tenancy property can not be put in a will and it DOES NOT go through
probate.
So if you own everything in Joint Tenancy, with your spouse, there will be
not any probate costs as there will be no probate. Also, your will, if
you have one, can only be used to express your wishes on custody of
children, etc. You could not control who would own your assets when you
die because you did not solely own any assets.
I recommend you buy 1 or 2 hours of a local estate planning attorney's time
and have the estate laws in your state explained to you.
If you need more information, let me know.
GOOD LUCK
BOB FORD
BOB_FORD@COMPUSERVE.COM
------------------------------
Date: Wed, 25 Feb 1998 21:21:03 -0500 (EST)
From: Paul Davis <hpd@pacbell.net>
Subject: Viatical Investments?
Has anyone invested in viaticals? If so, do you have any information
on which viatical companies are most reputable? The return on these
investments is excellent, although there is some risk that the
viator will outlive his/her life expectancy.
Paul Davis
------------------------------
Date: Wed, 25 Feb 1998 21:23:20 -0500 (EST)
From: "Abhijit Gupta,TechPgmMgr,CSMSJ" <guptaa@csminc.com>
Subject: RE: removing 20% withholding for IRS?
Hi John,
When you had opened the account, I think you may have filed
W-8 form with the broker which states that you are not a resident of the US.
In that case, the broker issue you 1042S at the end of the year for the
amount of withholdings. The broker is supposed to withheld 20 % of the
money.
If you are a resident of the US, then no tax is withheld. In
the latter case, you would have to inform the broker that you are no longer
a non-resident and then supply them with the social security number.
I hope this helps.
Regards
Abhijit
------------------------------
Date: Wed, 25 Feb 1998 21:24:36 -0500 (EST)
From: Tim Bubb <bubb@bigfoot.com>
Subject: Re: Dealer Financing
> Usually, if you get very low rate dealer financing, it is
> harder to get a good price. I would say you should compare the total
> cost over the four years of the price plus interest and see which is
> better.
>
> Also, make sure that you are allowed to make extra payments or
> pay the car loan off early without any penalties.
>
> Of course, it is best not to finance the car at all if you can
> avoid it, but in some cases, you don't have any choice.
>
> -David Martin
David,
Why would I want to tie up 20K - 30K in lost investment capital over a
4-5 year period?
For sake of argument, let's assume that I've decided that it makes
economic sense to buy a new car. I'd much rather rent that money from the
dealer at 4.9% and invest the 20-30K.
Of course, if someone is financing because they can't AFFORD to pay cash,
then your point is quite valid.
Tim Bubb
bubb@bigfoot.com
------------------------------
Date: Wed, 25 Feb 1998 21:25:58 -0500 (EST)
From: Nosmo King <royalty@tir.com>
Subject: City taxes, inter-office mileage
I have a particular issue / question about the Detroit City taxes that
are deducted from my paycheck, and I'm hoping someone may be able to
answer them, or perhaps point me in the right direction as to where I can
find the aswers. Any help provided will be greatly appreciated.
I work for an associated group of ophthalmologists. Our main office is
in Livonia, Michigan, however we have many offices in other cities
throughout the state. My office is within the Detroit city limits
therefore I have to (unfortunately) pay the exorbitant Detroit city
taxes. No other office location has city taxes deducted.
A. There are several days each month (5-12) that I am required to work
at some of the other offices outside the Detroit city limits. It upsets
me that I am paying Detroit city taxes for the time I am working outside
of Detroit. Am I really required to pay said taxes when working
outside of the city? What are my particular rights in such a scenario?
What are my employers obligations? Retro-pay?
B. Are there resident and non-resident percentage rates for calculating
the deductions? I lived in Detroit from 1986 - 1993 until moving north
of the city limits. However, the rate of deducted Detroit city taxes
from my paycheck remained the same after moving. As a non-resident, am I
entitled to a lower city tax rate? If there are two different rates,
how are they calculated? And if there in fact IS a lower non-resident
rate, am I entitled to a retro-pay from my employer?
C. We are reimbursed per the IRS monetary guidelines for distance
commuted between offices. However, we are not reimbursed for mileage if
we are driving to one location only, i.e., driving to Ann Arbor from home
and working there all day as opposed to driving to the Ann Arbor office
from the Detroit office. What are the guidelines here? If I have to
drive 65 miles to a remote location shouldn't it be reimburseable?
Now, imagine my disdain when I am paying Detroit city taxes while
working in Ann Arbor on a non-reimburseble 65 mile commute!! AARRGH!
Any light shed is appreciated. Thanks in advance.
------------------------------
Date: Wed, 25 Feb 1998 21:28:08 -0500 (EST)
From: The Editor <ikrakow@shore.net>
Subject: Any Way To Recover Philadelphia Withholding Taxes?
My son works in Philadelphia. There's a huge deduction for Philadelphia
withholding tax. Is there any way to recover it? What form needs to be
filled out? Any place to get it (preferably on the Web)? I don't think
TurboTax has a Philadelphia city tax edition.
Ira
------------------------------
Date: Wed, 25 Feb 1998 21:28:40 -0500 (EST)
From: John Wallace <JWallace@karta.com>
Subject: Maximum Age to obtain Mortgage? 52?
Can a person who is 52 years old realistically expect to be able to
obtain a 15 year mortgage, or will the lenders be turned off by the idea
that he would still be re-paying at age 67 ? Would he likely have to
have a larger-than-normal down payment ? Do 10-year mortgages exist ?
Thanks in Advance.
------------------------------
Date: Wed, 25 Feb 1998 21:29:08 -0500 (EST)
From: HuiSion Teh <hsteh@singnet.com.sg>
Subject: Is it worth to subscribe magazine upfront?
I intend to subscribe to a magazine which cost $90 per year. If I were to
pay for 3 years subscription upfront, there is a discount of $50 from the
publisher. Which means I'll pay $220 for 3 years subscription.
Is it worth paying the $220 upfront, taking into consideration the future
value of $ and an assumption of interest rate at 8% per year?
thanks+regards
------------------------------
Date: Wed, 25 Feb 1998 21:30:00 -0500 (EST)
From: Avrum Lapin <avrum113@cyberg8t.com>
Subject: Re: Removing 20% Withholding
Nothing is more painful than dealing with a bureauocracy.
If this is a Merril Lynch then you need to threaten to remove your account
(or at least talk to an office manager).
On the other hand if it is a 1-800-xxx-xxxx firm then next time you call
tell the person on the other end that two others have been unable to solve
this and you need to talk to a supervisor. Take names and note the time of
the call. Then a stiff letter to the CEO.
When I opened an account at a low cost major 1-800 firm they managed to
spell my last name differently 3 times on the confirmation slip as well as
make other clerical errors. All cleared up after two calls but it has
shaken my confidence enough that I have not gone back there even though I
like the products that they carry.
Avrum Lapin
Upland., CA
------------------------------
Date: Wed, 25 Feb 1998 21:30:44 -0500 (EST)
From: Avrum Lapin <avrum113@cyberg8t.com>
Subject: Re: living trusts
>Hi,
>
>A lot of seminars or workshop talk about the benefit of establishing a
>living trust. What is living trust and what does it really do
>What is the tax consequence to the present income tax and
>future estate tax?
>
Buying a living trust from someone who presents work-shops is not a
good idea. The work-shops are a good place to learn about the advantages
of a Family Trust and the bad things about not having one (but presented by
a biased person).
One of the major differences between a family trust and a will is
that with a family trust you pay the legal costs up front and with a will
your heirs pay them at probate.
One of the frequent contributors to this digest (Mark Welch) has an
excellent web site which has answers to most of the issues that you raise.
You can acess this through the Persfin website
http://www.tiac.net/users/ikrakow/pagerefs.html
If your assets are less than $600K (the new tax law raises this limit over
the next few years) then I don't think you need one unless
a) You have complex family relationships
b) Your state has complex or expensive probate procedures
c) Your estate is complex
d) Your primary heirs lack financial competence
Avrum Lapin
Upland., CA
------------------------------
Date: Wed, 25 Feb 1998 21:31:55 -0500 (EST)
From: dmak@tma-net.org
Subject: Will IRS Notice I Stopped Renting My House?
In 1996, I stopped renting out my house. Do you think the IRS will
notice that I am not filing a Schedule E for 1997, after years of
filing them to report the rental income? In other words, should I
include a note with my return saying why I am not filing a Schedule E
this time?
Thanks!
------------------------------
End of persfin-digest V4 #129
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