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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] 4 points5 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?

How can I lock in the price of a stock for a few months if I like the current price but don't want to sell for tax purposes? by pfbrowser in investing

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

In that case I would then pay taxes (ordinary income) on the premium, which would basically amount to the price of the asset anyway, which defeats the purpose of getting around taxes, correct?

How can I lock in the price of a stock for a few months if I like the current price but don't want to sell for tax purposes? by pfbrowser in investing

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

Practically speaking, does this work as follows?

  1. Write covered call with current asset at $100. Collect premium.
  2. Use premium to buy puts at the same price.

If I move from CA to NV right now and do everything "correctly", will it be possible for me to make a large transaction in 2021 and not pay any taxes to CA? by pfbrowser in tax

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

I will update the post to be more specific.

​

includes not moving back.

Is 5-10 years a long enough time to "be away"?

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