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Originally Posted by 3EngineTaxi
(Post 3850622)
Not everyone wants a massive house. Some people don’t want to be in the rat race of ever increasing escalating consumption and fancy and fancier everything. Plus he saved money all along by not paying for “the best house he could afford.”
Something to be said for simplicity and being content. |
Originally Posted by crewdawg
(Post 3850645)
Something to be said for simplicity and being content.
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Originally Posted by 3EngineTaxi
(Post 3850622)
Not everyone wants a massive house. Some people don’t want to be in the rat race of ever increasing escalating consumption and fancy and fancier everything. Plus he saved money all along by not paying for “the best house he could afford.”
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401(a) vs IRA
If you maxed out your 401(k) - should you throw the money into an IRA up to the $7,000 limit or the 401(a) (I won't hit the $69,000 limit). Doesn't seem like there will be a tax advantage of one vs the other, just having one in your 401(k) account to trade or having it in your IRA to trade
HSA is already maxed out btw |
Originally Posted by 170Till5
(Post 3855300)
If you maxed out your 401(k) - should you throw the money into an IRA up to the $7,000 limit or the 401(a) (I won't hit the $69,000 limit). Doesn't seem like there will be a tax advantage of one vs the other, just having one in your 401(k) account to trade or having it in your IRA to trade
HSA is already maxed out btw More money in tax havens isn’t the worst idea |
Originally Posted by SideStickMonkey
(Post 3855313)
I hit the 401a limit and then max out my IRA via a Roth conversion
More money in tax havens isn’t the worst idea |
Originally Posted by 170Till5
(Post 3855300)
If you maxed out your 401(k) - should you throw the money into an IRA up to the $7,000 limit or the 401(a) (I won't hit the $69,000 limit). Doesn't seem like there will be a tax advantage of one vs the other, just having one in your 401(k) account to trade or having it in your IRA to trade
HSA is already maxed out btw |
Originally Posted by SideStickMonkey
(Post 3855313)
More money in tax havens isn’t the worst idea
<MBCBP has entered the chat.> |
Originally Posted by sailingfun
(Post 3850294)
As long as they can as a couple meet the test for active participation in the business they will have no issues with the IRS. Those running into audit problems usually are actually passively involved and can't use the depreciation against other income like Delta earnings. Depreciation does however have to be recaptured at some point. Lots of ways to delay that but the bill does come due.
Just don't try to fudge your way into something that you will probably have to justify at, IMO, an almost inevitable audit. |
Originally Posted by UGBSM
(Post 3855888)
Ok, I didn't mean to cast despersions on the bonus depreciation strategy as illegitimate. If you can qualify for "material participation" and your "cost segregation survey" even makes it worthwhile then then this years' 60% bonus depreciation may be useful to you. In my case it was not. And in any case you must recapture that depreciation later anyway, of course.
Just don't try to fudge your way into something that you will probably have to justify at, IMO, an almost inevitable audit. 2) IRS assumes you took depreciation even if you didn't. You will pay depreciation recapture regardless. The only option is bonus or accelerated depreciation. 3) Having taken millions in depreciation over 20 years of RE ownership, I've never been audited. My time is due, but with accurate depreciation schedules my CPA says it's about as exciting as a V1 cut in the sim. |
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