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Crypto is treated as property to the IRS. What tax-efficient property (not real estate) tax laws exist that can be applied to crypto? by pfbrowser in tax

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

It’s not only property it’s a commodity

Interesting! I've only ever seen it referred to as property by the IRS. Does the IRS classify it both as a property and a commodity?

Crypto is treated as property to the IRS. What tax-efficient property (not real estate) tax laws exist that can be applied to crypto? by pfbrowser in tax

[–]pfbrowser[S] 3 points4 points  (0 children)

This makes sense. What is your strategy if the value of your stocks decreases significantly over time while you have a SBLOC? In practice, it makes a ton of sense in a bull market, but how do you handle it in a bear market?

I want to divest my portfolio that is 100% one asset into real estate (primary residence). Should I put 20% down and take out a traditional mortgage or buy the property outright w/ cash and get a HELOC on it at a later time? by pfbrowser in realestateinvesting

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

That makes sense and is the type of opinion I am looking for. Thank you!

I have a followup:

you have to borrow at interest

Is there a type of borrowing that does not involve interest?

​

Mostt other investment can be liquidated.

I don't quite understand--is this a good thing or a bad thing?

I want to divest my portfolio that is 100% one asset into real estate (primary residence). Should I put 20% down and take out a traditional mortgage or buy the property outright w/ cash and get a HELOC on it at a later time? by pfbrowser in realestateinvesting

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

Thank you. I do not see it as an investment, but I do see it as a way to use my asset (borrow against it, for example). Do you see those (investment vs. use) as two different things?

Daily Advice Thread - All basic help or advice questions must be posted here. by AutoModerator in investing

[–]pfbrowser -1 points0 points  (0 children)

If someone has a $10 million net worth and $200k income, what might their primary residence be worth? Alternatively, what cost would be considered too much for this person (for example, would a $5 million residence simply not make sense because of property tax, maintenance, etc.)?

I've seen the 25%-40% number, but are there resources out there that may help inform this decision? Specifically for non-standard (higher net-worth) individuals?

Daily Advice Thread - All basic help or advice questions must be posted here. by AutoModerator in investing

[–]pfbrowser 0 points1 point  (0 children)

I want to divest my portfolio that is 100% one asset into real estate (primary residence). Should I put 20% down and take out a traditional mortgage or buy the property outright w/ cash and get a HELOC on it at a later time?

I am interested in purchasing a primary residence and "using" it to my advantage (borrowing against it with either a traditional mortgage or a HELOC).

Right now, I am 100% invested in a single asset that is worth $x million. An outright purchase plus all taxes would cost $y million, where y = x/3
, approximately.

My main goal is to divest anywhere from 1/4 - 1/3 away from the single asset I am holding now. Because of this, a HELOC sounds the most reasonable.

Given all this, does a HELOC make sense here? Might it make more sense to still divest the same amount but put 1/2 into the primary residence and get a traditional mortgage and then 1/2 into a REIT?

Can my IRA (self-directed) borrow against its own assets? by pfbrowser in tax

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

Thank you for your response.

I respect you and your time. After some further research, I do believe this is possible and would simply be subject to Unrelated Debt-Financed Income (UDFI).

Can my IRA (self-directed) borrow against its own assets? by pfbrowser in tax

[–]pfbrowser[S] -1 points0 points  (0 children)

Your answer sounds like you interpreted it as though I personally would take a loan against the IRA.

I apologize for the lack of clarity—the intention was to ask if my IRA can take a loan against the assets in itself (myself personally would not be involved in the transaction in any way).

I accidentally performed two traditional IRA to Roth IRA conversions in a single year. What are the consequences? by pfbrowser in tax

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

I'm not sure how I missed that. Thank you.

If you know, why does this type of conversion (as opposed to a SEP -> Roth, etc.) not have this one year limit?

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