Author Topic: any accountants out there that i can ask a question?  (Read 88712 times)

Offline churnbabychurn

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Re: any accountants out there that i can ask a question?
« Reply #1590 on: June 12, 2018, 08:30:37 PM »
Is using money from Heloc better at 4.5% for about 3k w/d?
Hard to imagine that your tax rate on the gains is so high

Offline gozalim

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Re: any accountants out there that i can ask a question?
« Reply #1591 on: June 12, 2018, 08:57:14 PM »
Hard to imagine that your tax rate on the gains is so high
no, but the funds are also earning apy, so if they're earning close to 4%, plus whatever tax ramifications, might be worth borrowing

Offline davidd75

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Re: any accountants out there that i can ask a question?
« Reply #1592 on: June 13, 2018, 05:18:38 PM »
looks like as per accountant its 15% tax rate on w/d from investments for most of us in the middle brackets

Offline davidd75

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Re: any accountants out there that i can ask a question?
« Reply #1593 on: June 19, 2018, 09:32:39 AM »
here are the details.

Hi I need to w/d 3K. Is it better to use me HELOC at 4.5% or w/d from my Fidelity mutual fund that has approx 21K which consists of 14k principal and 7k in earnings. My tax bracket is 22%.

Offline churnbabychurn

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Re: any accountants out there that i can ask a question?
« Reply #1594 on: June 19, 2018, 10:29:15 AM »
looks like as per accountant its 15% tax rate on w/d from investments for most of us in the middle brackets
Right

Offline ckmk47

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Re: any accountants out there that i can ask a question?
« Reply #1595 on: June 19, 2018, 12:08:44 PM »
here are the details.

Hi I need to w/d 3K. Is it better to use me HELOC at 4.5% or w/d from my Fidelity mutual fund that has approx 21K which consists of 14k principal and 7k in earnings. My tax bracket is 22%.
Do I understand correctly?
You need $3,000 now.
You can borrow it at 4.5% each year, resulting in paying ~ 9% of principal over 2 years, 13.5% over 3 years, 18% over 4 years (of course you'll be paying it back, so you''l be spending less on the interest over time.)
You can take it out of your mutual fund, with an up front hit of ~ 15% in taxes AND a loss of the income you would be making on that $3000 in the mutual fund.


If you can repay the HELOC quickly, go that route. A payback time of even 2 years will be more cost effective.

Offline davidd75

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Re: any accountants out there that i can ask a question?
« Reply #1596 on: June 19, 2018, 01:42:50 PM »
Do I understand correctly?
You need $3,000 now.
You can borrow it at 4.5% each year, resulting in paying ~ 9% of principal over 2 years, 13.5% over 3 years, 18% over 4 years (of course you'll be paying it back, so you''l be spending less on the interest over time.)
You can take it out of your mutual fund, with an up front hit of ~ 15% in taxes AND a loss of the income you would be making on that $3000 in the mutual fund.


If you can repay the HELOC quickly, go that route. A payback time of even 2 years will be more cost effective.

yes w/d $3000 but from what I understand only $1000 will be taxed as that will be the approx earnings portion as  1/3 of total balance is earnings

Offline ckmk47

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Re: any accountants out there that i can ask a question?
« Reply #1597 on: June 19, 2018, 02:04:14 PM »
yes w/d $3000 but from what I understand only $1000 will be taxed as that will be the approx earnings portion as  1/3 of total balance is earnings
So:
Heloc - 4.5% of $3000 = $135 each year
Mutual fund withdrawal = 15% of $1000 = $150  once - but lose the long term earnings.
I really hate for you to give up future eanings.  And most people don't pay themselves back.  So if it's taken from savings, that amount, and it's furture earnings are lost.
Compound interest is practically magic for long term earnings.

« Last Edit: June 19, 2018, 02:11:08 PM by ckmk47 »

Offline mgarfin

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Re: any accountants out there that i can ask a question?
« Reply #1598 on: Yesterday at 12:44:21 PM »
When filing an NYS sales tax return.
It asks for your Gross sales and non-taxable sales.
Is that for NYS only or is it for the business?