THREAD CLOSED!!! Ask Rande 5000+: USE NEW THREAD
- Dave_K
- Wendell
- Rande
- Rande
- Kirk
- Mark_J
- Kirk
- Rande
- Rande
- Karin_
This archived discussion is "read only".
For the corresponding "live" discussions, post in the active topic forum here.
« Previous 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next »
» Dave_K - Credit
Rande,Your comments and help are much appreciated on this site. You are more effective here where one does not have to wade through so much drivel to get to the good info.
Soooo, now that you have more time on your hands, maybe I can sneak in a request for some advice!
My daughter is a college grad, single, 25 years old, lives well within her means, has about $50K in investments, has about $5K more in savings, a new car half paid for, and a solid job with the State. I have co-signed for her car purchase as she had not yet established credit. She has never missed a loan payment or bounced a check. Every credit card she has applied for has been rejected and she can not secure a small loan from her bank to begin a credit record. My question is, what steps can she take to establish independent credit?
As a foot note, her unemployed boyfriend with credit card debts has no trouble securing a car loan.
Thanks in advance,
Dave
-- posted by Dave_K
» Wendell - Rande
Keep the faith big guy. When you know you are in the right keep on trucking. What a lifesaver you have been this past yr for me and others that frequent this site. Another neophyte question if I may. I am thinking about taking some profits in the near future and am wondering about estimated taxes. Since I have never fell into this category and have never paid estimated tax, do I figure my taxes on my tax bracket and must I contact the IRS about getting the proper forms for this? Thanks Rande-- posted by Wendell
» Rande - Dave,
Dave,First of all, congratulations to you and mom on an obviously fine job of parenting. Strange there would be problems obtaining a credit card when they seem to be putting them inside boxes of Cocoa Pebbles these days. In the past, has your daughter requested the reason for denial of a credit card? Has she asked to obtain a copy of her credit history? Might be some errors on the record there, worth checking out. One place to start establishing credit might be a major department store chain such as Nordstoms, Macys, Sears, etc. Seems as though a college grad with good income shouldn't have to go through the "secured card" route with VISA or MC, but that could be an option (perhaps a card at the bank that requires a minimum balance be kept in the checking/savings). Finally, there might be an affinity program for alumni or through a professional association where she might have a better chance.
Sermon time: Of course, you'll provide the fatherly lecture that the MOST important thing is to use the credit wisely once obtained. Seems we need to have at least one of the major cards in this day and age (to rent a car, for emergencies, etc.), but the worst thing is to pay non-deductible double-digit interest on these things. Credit cards can be a great tool, so long as you're the master and not the other way around. My wife and I have not carried a balance on our cards past 30 days in over 15 years, and I would never at this point pay an annual fee for a card, but we find the convenience (and rewards for prudent usage) a valuable tool in managing the monthly finances. Good luck to daughter.
-- posted by Rande
» Rande - Wendell,
Wendell,For federal purposes, the rule is that you must pay in on a timely basis during the year, through withholding and/or quarterly estimated tax payments, at least 90% of your current year's actual tax liability or, as a "safe harbor," at least 100% of the prior-year liability (safe harbor rules require a larger paymjent if your AGI -- adjusted gross income -- was over $150,000 in the prior year). Below is a link to the IRS publication website where you can download Publication 505, "Tax Withholding and Estimated Taxes." You should also take a look at Form 1040-ES and instructions. Income not subject to withholding (such as capital gains on asset sales) might require additional withholding or quarterly payments on your part in order to avoide penalties for the underpayment of estimated taxes (currently around 9% annual rate on the amount that should have been paid for the time period up until it is paid).
http://www.irs.ustreas.gov/forms_pubs/pu...
P.S. Be sure to check your state rules too. CA, for instance, has similar rules to the federal.
<img src=http://www.internetcount.com/1867857677.cgif width=5 height=5>
-- posted by Rande
» Kirk - Taxes and estimated payments
Since I work for myself...what if I have $20K in income averaged over the year and then take $1M in profit taking on Dec 31?
I would not have known I was taking that profit until Dec 31 so how could I know to pay a higher estimated tax before then? Would I be OK to pay the estimated tax on the $20K in income and then capture the tax of perhaps $350K when I file?
Of course these numbers are only a dream, but perhaps one of these penny stocks will hit it big this yr? 8)
I'd probably be wiser to take the profits the next trading day and delay the taxes into the next year (that would then be 4 payments of $350K/4 correct?)
-- posted by Kirk
» Kirk - Taxes
TaxesMark, My taxes for 1999 were VERY high. I had salary carried over from HWP, I sold ESO's (from HWP), I took HWP profits and worked on reducing my number of shares even as they gained 55% last year AND I took profits on two stocks that were 8 baggers. I actually got hit blind sided by some triggers where I lost deductions! Ouch!
If I don't take large capital gains this year, my taxes will more than likely be much, much lower. Thus I have no "protection" from the higher total rule.
-- posted by Kirk
» Rande - Kirk,
Kirk,As Mark says, there is always the prior-year safe harbor. But, if you have a huge gain in the final quarter of the year (up to the last day), then you can elect the "annualization method." Under the annualization method, the estimated tax is not considered due until the quarter in which the income occurs (rather than the default assumption that income was received ratably throughout the year). For example, the fourth quarter ES payment is not due until January 15th of the following year. You can take all your income and expenses for the year and annualize them on a quarterly basis. If you did not recieve the bulk of your income until the fourth quarter, then under the annualization method the incremental additional ES payment associated with that income would not be due until the 1/15. See Form 2210 and instructions for the annualization method. TurboTax should be able to walk you through it as well.
-- posted by Rande
» Rande - Existing home sales for Feb.
Existing home sales for Feb. were expected to come in around 4.72 million (4.59 million previous month) and came in at 4.75 million. Inventory of unsold homes increased, however, and the median price dropped to $131,100 from $132,200. See story:Home Sales
<img src=http://www.internetcount.com/1867857677.cgif width=5 height=5>
-- posted by Rande
« Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 Next »
Please follow the guidelines set forth in the Suite101 Posting Etiquette when adding to the discussion.