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Tagged With "Taxes"

Tagged With "Taxes"

  • Taxes
    Not sure how to look up taxes or even how to do my taxes yet haha. But I was wondering if there is a reliable website that explains the tax rules within a certain district. (income taxes, property taxes, stock taxes?, sales taxes, etc). Your help would be greatly appreciated!
  • Topic Reply
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    Usually you can find tax information on the website for your city, county, state, etc. by searching for it online and then looking for a website for that location. When searching on the state or federal level you could also look for websites that have a ".gov" address. They will have the most accurate information because they are actually run by the state or federal government. There might be better places to look but for the limited amount of research that I have done on taxes, that is...
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    Hi @Mohammad , great question! You'll definitely want to check out the what @Landon Martin suggested, going to a .gov website for more specific information and then deciding what type of info you're looking for, (Like how to file taxes for a business, person, or an invetment property). These types of sites will give you detailed, accurate, and up-to-date information on what's going on with both federal and state taxes, depending on what you search. You'll also to check out IRS specific...
  • Retirement Planning
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    Hey all, I am new here. however I have been reviewing and listening to the topics for a while. What I am having difficulty on is this: 401K is pre tax dollars. Any investing money after you get paid is money that has been taxed. Shouldn't the best advice be for retirement planning to max out your 401K contributions before thinking on any other long term investing with after tax dollars? Max out means contribute a full $ amount you are allowed per year, which includes you employer...
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    It's typically advised to only contribute up to your 401k match. Once there is no longer a match, or in other words, free money, invest other funds into an IRA. The reasoning is 401 plans are typically limited in the investments you can choose and will be taxed upon withdrawal. However, it varies, so if you feel it is optimal for you to continue to invest in your 401k based on your analysis then continue to do so. Regarding your logic with taking on more risk with after-tax dollars. Higher...
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    Hello @Trevor , I was in the same predicament as you mentioned above on this thread. After doing some googling and reading a slight page of Dave Ramseys book, he pretty much mentioned the same thing that @Maykel said. Max out 401K. After that, invest in IRA (I would say ROTH) so when you pull out in the future, its already taxed. I personally am doing this now. Just started it. I would not want to get taxed from only pulling out from 401K. You mentioned real estate, I would recommend this...
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    you both touch on a point: invest in 401K as much as your employer matches is the general advice. Tend to agree, however there are additional options to continue on 401k without matching. Something else mentioned is the idea of taxable retirement income vs non taxable (Roth). So thinking this is my action plan: In my circumstances I am past the beginning steps: 2k emergency fund, 8 month expenses liquid savings, no student, car or CC debt, no debt at all till I buy a home. 401K up to...
  • Taxes
    I am facing a tax issue, but let me preface it by saying this is a good problem to have. I have been blessed to see some massive gains in one particular stock I hold in my portfolio. My plan is to use these gains to completely pay off my mortgage (I told you they were massive) which will be liberating on a level that I cannot explain. The small issue (good problem) is that this will lead to a huge tax liability and possibly push me into another tax bracket. I have held the positions longer...
  • Topic Reply
    I wouldn't let the chance of temporarily moving into a higher tax bracket dissuade you from your goal of paying off your mortgage. As time goes by your high performing stock could fall back down in value and spoil your plans. However, if you are really keen on not being bumped into a higher tax bracket and you feel pretty sure the stock will maintain its value, you could always sell a certain percentage of the stock this year that still keeps you in your current tax bracket. You could then...
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    You can get your taxes done for FREE instead of paying a firm if you are a qualified taxpayer. In Canada, there is the Community Volunteer Income Tax Program (CVITP). Community organizations host free tax clinics where volunteers file tax returns for eligible people. Guidelines in most provinces are for individuals earning up to $35K, a two person family up to $45K, and so on. (see details: https://www.canada.ca/en/reven...ome-tax-program.html ). In the U.S., the IRS's Volunteer Income Tax...
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    Also, the FREE tax programs I mentioned in my previous post are always looking to find new volunteers and they provide FREE tax training where you will likely learn a few more hacks to save money on taxes, as per your opening question. Having gained experience completing taxes will look good on a resume too if you are looking to pursue a career in business or finance. Lastly, but equally important, it will also give you a great feeling at having helped others who may not be in as stable a...
  • Topic Reply
    I'm going to assume there is no penalty for early prepayment because that's a bit unusual. If it is, it would completely change the calculation. For longterm capital gains, you get the first $10,000 for free, then it's 15% up to $500k, then it's 20%. Your mortgage probably is lower than 5% interest, so it doesn't seem worth it to pay more than 15%. The numbers completely define the answer. Here is an example If you owe $200k on a mortgage, then you can just pay the 15% on $190k which is...
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    Thanks for the thorough evaluation with some numbers to support it. You offered a lot of info which I appreciate. I think the interest over the next 30 years compared to the tax liability for this one year makes it clear. I have decided to sell off shares each month to pay off the mortgage by year's end. I am also setting aside a portion of the proceeds for taxes due next year. This will be a huge milestone for me and increase my monthly cash flow in order to start new investments. Thanks...
  • Topic Reply
    Thanks for the reply. You make several great points. I definitely don't want a fall in the stock price to spoil my plans. I have already seen some correction. I have decided to sell off shares each month for the next several months and retire the mortgage by year's end. I am offsetting my tax liability by increasing contributions to my traditional 401k and 457b plans. I really appreciate the sound advice. I will post back here to let you know how it turns out.
  • Topic Reply
    If you are going to pay the taxes, you might as well take the profit right away, and put the money to reducing the interest. No sense in waiting for the money to accrue more interest.
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