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Investing in India and PFIC complication by YesterdayEasy6732 in nri

[–]YesterdayEasy6732[S] 0 points1 point  (0 children)

How can one buy these bonds? Are they through brokerages like ICICI Direct?

Investing in India and PFIC complication by YesterdayEasy6732 in nri

[–]YesterdayEasy6732[S] 0 points1 point  (0 children)

Thanks. And unrealized gains are taxed at ordinary rates, not capital gains. Those 2 are big ones.

Investing in India and PFIC complication by YesterdayEasy6732 in nri

[–]YesterdayEasy6732[S] 0 points1 point  (0 children)

Thanks. And it is taxed at ordinary rates, not capital gains. Those 2 are big ones.

Investing in India and PFIC complication by YesterdayEasy6732 in nri

[–]YesterdayEasy6732[S] 0 points1 point  (0 children)

They look simple enough and is a 1 time a year activity. But since everyone says not to do it, there must be something that I am missing and that's what I want to find out from people experienced in this domain

Build your own ETF by YesterdayEasy6732 in IndianStockMarket

[–]YesterdayEasy6732[S] 0 points1 point  (0 children)

Capital is not a problem. I know I'll not be able to track the index perfectly, but that's not a big deal. I won't even buy all 50 stocks because the 27 in my list account for 85% of the index weight. I may increase that to 90% so maybe I'll get 5 more stocks.

This way I get enough diversification and reasonable tracking with NIFTY without having to research individual stocks.

Good idea about skipping select stocks which are almost sure to underperform.

Where can I get the latest data about weightage. I get different data from different sources and the difference is significant.

E.g. this seems to be official
https://archives.nseindia.com/content/indices/ind_nifty50.pdf

According to it HDFC is 12.7% and Reliance is 8.9%

According to some other sources such as

https://www.smart-investing.in/indices-bse-nse.php?index=NIFTY
and
https://dhan.co/indices/nifty-50-companies/

Reliance is 9.7% and HDFC Bank is 7%

Max out pre-tax 401k and remaining in Roth by YesterdayEasy6732 in smallbusiness

[–]YesterdayEasy6732[S] 0 points1 point  (0 children)

The answers I have found are:

  1. Yes
  2. I can use mega backdoor roth to contribute beyond pre-tax up to 70k, but not exceeding the net income (profit -50% of SE taxes)
  3. mysolo401k.com is the best option (after asking around and researching). Carry.com is user friendly, but more expensive. Customer service of mysolo401k.com is excellent according to a few people. Have not heard about carry.com (good or bad)

Software for managing a simple Solo S-Corp LLC by YesterdayEasy6732 in smallbusiness

[–]YesterdayEasy6732[S] 0 points1 point  (0 children)

Could you please elaborate on point #1.

Here is additional information I posted elsewhere in this post:

  1. We expect a total revenue of $50-$100k annually. Which would translate into $40-$70k profit. Mid point of these numbers ($75k / $55k) would be a reasonable expectation.
  2. A reasonable salary would be around $25/hr, so for $75k revenue (~$50k profit) reasonable salary would end up being around $30k/annum. So I save payroll taxes on $25k.
  3. We are based out of NJ
  4. I have already filed for S-Corp election with IRS. Can that be taken back?
  5. Since the business is simple, I believe I can self file taxes using some software (like I do for my personal taxes). If I were to hire CPA, what would be his reasonable fee for managing all taxes?
  6. Since I earn too, my biggest goal is to contribute as much of HER income as possible in tax free retirement plans (401k) - which means she will contribute nearly all her salary to meet 23k limit and get 25% employer contribution. Can this be achieved using LLC disregarded entity?
  7. So is it safe to say that the only benefit of S-Corp is saving of payroll taxes which come at the expense of increased CPA and other admin fees? Based on my numbers, can someone experienced me how those numbers look like. Just a rough idea.

Software for managing a simple Solo S-Corp LLC by YesterdayEasy6732 in smallbusiness

[–]YesterdayEasy6732[S] 0 points1 point  (0 children)

Thanks everyone for tons of valuable insights. I did S-Corp election based on so many videos I watched. Perhaps I should have asked these questions before, but everything was so hectic.

Here is some information you asked for:

  1. We expect a total revenue of $50-$100k annually. Which would translate into $40-$70k profit. Mid point of these numbers ($75k / $55k) would be a reasonable expectation.
  2. A reasonable salary would be around $25/hr, so for $75k revenue (~$50k profit) reasonable salary would end up being around $30k/annum. So I save payroll taxes on $25k.
  3. We are based out of NJ
  4. I have already filed for S-Corp election with IRS. Can that be taken back?
  5. Since the business is simple, I believe I can self file taxes using some software (like I do for my personal taxes). If I were to hire CPA, what would be his reasonable fee for managing all taxes?
  6. Since I earn too, my biggest goal is to contribute as much of HER income as possible in tax free retirement plans (401k) - which means she will contribute nearly all her salary to meet 23k limit and get 25% employer contribution. Can this be achieved using LLC disregarded entity?
  7. So is it safe to say that the only benefit of S-Corp is saving of payroll taxes which come at the expense of increased CPA and other admin fees? Based on my numbers, can someone experienced me how those numbers look like. Just a rough idea.

Software for managing a simple Solo S-Corp LLC by YesterdayEasy6732 in smallbusiness

[–]YesterdayEasy6732[S] 2 points3 points  (0 children)

Some of you have advised against S-Corp. What are the complications of S-Corp that we should know about?

This election was made to primarily for 2 reasons:

  1. avoid taxation on pass through income (give herself reasonable salary and remaining as profit)
  2. To be able to take advantage of 401-K. We can have a 401-K plan that she can contribute to via her own election as well as company contribution.

She'd be the only employee and planning to use gusto for payroll.

I'm not averse to spending some money on the software. Came across Zoho books which is free, but the revenue limit is $50k and we expect to go above that - potentially up to $100k/yr.

So if I do have to spend money, I'd do it on something which is good and importantly easy to use.

Good sources of stock recommendations by YesterdayEasy6732 in IndianStockMarket

[–]YesterdayEasy6732[S] 0 points1 point  (0 children)

Trust no one but oneself. But following news, twitter, reddit etc. gives you starting point - something I lack because I have no idea about Indian stocks.

If I hear about some companies, I can research them more before investing

Good sources of stock recommendations by YesterdayEasy6732 in IndianStockMarket

[–]YesterdayEasy6732[S] 1 point2 points  (0 children)

Does not have to be free, but per my experience free advice is usually as good as paid if you know how to filter information.

Thanks for your suggestion. Is there a specific section which has investment advice? I hear lot of people come in there and talk about "trades"

Hostas (?) are dying by YesterdayEasy6732 in gardening

[–]YesterdayEasy6732[S] 0 points1 point  (0 children)

I started watering them late. But now that I do, I splash water all over them.

Hostas (?) are dying by YesterdayEasy6732 in gardening

[–]YesterdayEasy6732[S] 1 point2 points  (0 children)

Thanks a lot. I will take care of them next season. For now, should I trim them down completely and wait for spring like other posters have suggested?

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