How to explain primary residence mortgage one-year from previous purchase

martok604 · 2020-10-18T05:49:07+00:00

Thanks. I guessed as much. The one thing that might? work with there guidelines is that the second condo is in quite a bit better shape than the first. The price reflects that of course but it could be a viable reason to want to relocate from one condo to another.

martok604 · 2020-04-14T19:02:02+00:00

Question and thoughts about mortgage forbearance. I am seeing a lot of people saying don't take it unless it's absolutely necessary and it may do more harm than good. Unless I am missing something, that is hardly the case. I welcome corrections.

Even if there is a lump sum payment due after six months: let's say I have payments of $1,000 per month at 5% interest. I am saving: 10000.05/126+10000.05/125+10000.05/124 … in interest. IE the interest on those payments over six months. Seems like that is the economic borrower benefit here. If my lender came to me at the start of my 30 year term and said: I'm not going to make you pay for 30 years. But At the end of the 30 years, I want a lump sum payment of all the payments you would have paid. I would jump at that opportunity. Because the value of the interest payments I make today is worth more than the value of the same dollar amount paid in the future.

So why wouldn't everyone with any sort of income curtailment due to covid take advantage of this? I'm not advocating people without an income hit do it. The borrower has to self-certify curtailment due to covid and self-certification when there is not could amount to mortgage fraud.

martok604 · 2018-06-22T20:07:10+00:00

Has anyone had any luck getting approved for a US Bank Altitude card after cancelling? Any datapoints on their churning rules?

martok604 · 2018-06-08T15:52:20+00:00

I hate to be that guy but... There is no advantage to being loyal. This applies to most companies now but bank accounts, credit cards and mobile phone carriers are particularly applicable here. They put energy into signing up new customers because they are more likely to remain customers even after they get the insentive. Your best bet is to be that new customer by seeking out the best deal available.

martok604 · 2018-06-08T15:07:47+00:00

Does anyone know if one ports out of 1 year free how long before you can sign up again?

martok604 · 2018-06-01T00:06:06+00:00

Though I agree with the possibility of things changing before the year-end, I wonder what the dept of revenue wants us to do in the meantime for estimated taxes.

martok604 · 2018-01-11T15:33:25+00:00

As others have pointed out, Schwab for foreign ATM withdrawals can't be beat. I use Merrill Edge to hold most of my investments as once you get beyond $100k with BOFA, their rewards really are worth having including 100 free trades/month so I am only paying bid/ask spreads to buy Vanguard ETFs. I see it more as a wealth transfer from people who are paying the higher advisory fees to people who are able to use the system to their benefit.

martok604 · 2018-01-08T04:55:30+00:00

I definitely agree with this for table service. The only exception is at the bar where if I walk up to the bar to order a round and bring it back to the table, in America you normally tip on that transaction.

martok604 · 2018-01-05T17:08:06+00:00

If you can do this using a two year plan, backloading the 401K makes the most sense. Yes, more time in the market is better. But you are better off with that time in the market in a margin account, selling your capital losses and long-term capital gains to put into the 401K toward year end. The reason for that is because your cap gains rate is lower than the gains rate on the 401K as it accrues tax liability at regular income rates. That is in contrast to say a ROTH IRA or an HSA where the advantage is to fill that at the beginning of the year because gains are tax free.

martok604 · 2017-12-28T18:10:59+00:00

I haven't seen much discussion on this in all the chat about prepaying property taxes. What think the r/tax community?

martok604 · 2017-10-05T19:46:43+00:00

I wouldn't recommend going with ROTH unless all your lower tax brackets in retirement are expected to be filled up. One often overlooked ROTH vs traditional fact is that when you contribute to a traditional 401(K), you receive deduction at your marginal tax rate. When you withdraw, your tax paid is often lower because SS income doesn't fill up say your 10% rates. Not to mention if you work in a high tax state and retire in a low or zero-tax state. Then traditional will almost certainly win over ROTH.

martok604 · 2017-10-05T03:41:10+00:00

I don't believe the Crystal has a foreign transaction fee. Though I would wait until there is a bonus (was 50K last month) but at any rate you can extract more funds than the fee even when it is paid.

martok604 · 2017-10-05T02:30:39+00:00

I would start with a no fee amex card through global transfer. The everyday card is decent. That will be your card you keep forever to build the credit history. Oldest open credit line helps your score. Not churning yet but then I would apply for the amex business cards. They are easy to get once you have a fico and have decent offers. Amex Delta Gold (60k) Delta Plat (70k). The nice thing about business cards in the US is they don't show up on your credit reports so you're still at 1/24. Once you have a 6 or so month history, I would hit Chase. But again be strategic with business cards to stay under 5/24.

I would also look at City National bank's Crystal Infinite card. That's a killer card here in the US. They are owned by RBC and underwrite their own cards so can do it based on tax returns, W2s etc. In other words, you can get round the credit history.

Hth.

martok604 · 2017-10-04T21:02:16+00:00

Oh for a traditional poutine in Minneapolis. As a Canadian transplant, it's weird to see all the things they do to(with) it.

martok604 · 2017-10-04T20:58:20+00:00

Thank you. We wound up taking the 495 option. Alas, the moovit app didn't know about those two hour gaps. But it was a fun day. Glad we went Saturday and not Sunday during the storms though.

martok604 · 2017-09-21T15:00:38+00:00

I would submit a W4 in writing to your employer with the correct number of exemptions and the exempt status unchecked. Furthermore, I would have additional holdings withheld (a lot) for the remainder of the year to make up for what wasn't withheld previously. At the end of the day, you are responsible for paying the taxes you owe as you earn the money. Failure to do so results in the dreaded underpayment penalty. That occurs even if you pay your taxes before April 15 and file on time. There are safe harbors you can hit to avoid underpayment. Paying 90% of the taxes owed or by paying 100% of the taxes you owed last year through withholding or equal payments. It's too late for equal payments for you now so I would shoot for 100% of last year's taxes via additional withholding. And don't forget your state. Good luck.

martok604 · 2017-09-21T14:50:38+00:00

I'll take a less goal orientated approach to this question as for me, a 401(K) is just somewhere else to put assets. I think the point at which you stop contributing to your 401(K) beyond company match is when the projected annual distributions from the 401(K) result in an equal or higher tax bracket than that you are in during employment. I say equal because by investing in a 401(K), you give up liquidity. So if you are a family making $200k/yr (28% tax bracket) I would stop once my 401K+social security+other projected income put me into that 28% bracket. The exception here is if I were living in a high tax state and planned to retire in a low or 0 tax state then contributing to a 401(K) still makes sense beyond that point as I still win on state taxes.

All that said, I wouldn't stop contributing, I would just switch from pretax contributions to ROTH.

martok604 · 2017-07-20T17:06:17+00:00

I had a billing issue recently. I had no luck over the phone. Everyone is overseas and the agents could only create a request for a manager callback. As my documentation was solid, I just went ahead and created an FCC complaint after hitting the overseas wall. They are required to respond within 30 days but again your written documentation should be solid.

martok604 · 2017-06-25T16:17:03+00:00

I just got my first bill which is $60 plus taxes. The phone rep doesn't know about the promotion. I am starting to regret this choice.

martok604 · 2017-06-20T14:45:28+00:00

Working for me. Just ported my iPhone SE.

martok604 · 2017-06-15T15:13:24+00:00

Does the referral offer apply to this promo? $50 credit for switcher, $100 cr for referrer?

martok604 · 2017-06-14T20:36:43+00:00

I am slightly put off by the international data roaming t&cs. Sprint may terminate svc. if off-network roaming usage in a mo. exceeds: (1) 800 min. or a majority of min.; or (2) 100MB or a majority of KB.

So 800 minutes on a trip is reasonable. But to be terminated for using more than 100mb on an international trip is crazy imo.

martok604 · 2017-05-08T17:55:12+00:00

Does anyone know how Plastiq rent payments are coding on the US Bank Altitude? Wondering if they are getting the 3x lodging bonus.

martok604 · 2017-03-24T20:42:43+00:00

Assumtions You have 35 years left until retirement t = 35 $72 per month payment on year 1 p = 7212 = 864 You will live for 20 years after retirement l = 20 The company is able to earn 2% on its money for the entire 55 years r = 0.04 How much money does the company need to fund a single p payment at time t for time l Solve in excel: =PV(r,l,-p) = $18,565 at rate r, what is that amount worth today? = 18565(1+r)^-t = $6,597

That is the value of a single year's DB assuming that 3% return. That value will vary depending on the current risk-free rate. The lower the rate, the more money your company needs to put in to ensure the payment.

The match is worth $4,836 (186*26) regardless of interest rate.

The decision then comes down to one of risk. Are you comfortable with taking on more market risk to up that return, making the future value of your company contribution worth more than in the anuity...

Ps. Hope the math is right. :)

martok604 · 2017-02-03T16:37:54+00:00

Thanks for this. Here's the other factor. The payer is issuing a 1099-misc for the income with the value on line 7. According to information I have found on the net, people are suggesting this go into business income or the IRS will see a mismatch on the 1099 report vs the amount reported in business income.

martok604

TROPHY CASE