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CO Horn

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Posts posted by CO Horn

  1. 22 minutes ago, Spur08 said:

    Hm..maybe we're not on the same page.

     

    Folks are selling their home to someone else.  Brother is selling rental house to someone else and buying (1031) a new home for the folks.  Folks pay rent for year or whatever, then buy the home from brother.  Brother 1031s to vet building.  From what I read in that link above, it's allowed as long as certain conditions are met.

    We were not. Your original posting said he was buying their home, not buying a home for them.  If he is purchasing from a 3rd party and renting to your parents at arms-length, what he is proposing should work.  When he buys the vet property, it will need to be titled in his name or whatever name is on title of the current property and lease it to the vet entity.

    • Like 2
  2. 23 minutes ago, Spur08 said:

    It sounds like my folks are claiming the one-time, over 55 rule of exemption on paying cap gains on your primary residence, so they're not worried about their 1031.  Per my dad, my brother's tax burden on his property is $20K or so and he's "clearing this" through some organization where "this is what they do"

    That rule went away 20 years ago.  The current rules is they can exclude $500K of gain if they have owned and used as personal residence for 2 of the last 5 years.  

    • Like 2
  3. However, it appears that you may not be able to dispose of (sell) relinquished property to a non-related party and acquire like-kind replacement property from a related party without recognizing depreciation recapture and capital gain income tax liabilities.

    I disagree with Jhawk that relatives are not related parties. Code Sec 1031(f)(3) defines related parties.  It refers to code Section 267(b) which in turn refers to 267(c)(4) that defines related persons as:

    The family of an individual shall include only his brothers and sisters (whether by the whole or half blood), spouse, ancestors, and lineal descendants

    • Like 1
  4. 42 minutes ago, Onboard 2.0 said:

    Put yer weenie roasting stick down. Old testament  vs. New Testament teachings (and I'm not defending  Christianities many transgressions against people). 

    Islam has not had that change, and too many adherents (SEE: The Middle East, Africa) subscribe to the old school theocratic (Mohamaedist) calls for murder of infidels, and Jews, subjugation of women, and all the other vile parts that keeps people under the thumbs of a religion that uses murder as a tool to control it's adherents.

    Sharia law is incompatible with western philosophy, govt, and civilization in too many of its tenets.

    The funny thing is, those that make the Old v New Testament argument are the first to come back to the Old Testament to justify their intolerance. 

    • Like 2
  5. She can put the most away on the least amount of income with a solo 401k. Why not keep the money in the 401k? Why does she want to roll it over into an IRA? There are things that you can do with a 401k that you cannot do with an IRA and vice versa. 

    What about a cell phone and/or internet?  Does she have any business mileage?

    in general, an LLC only provides liability protections and not tax savings. When you say she’s claiming a home office, what is she claiming? Is she using the safe-harbor or actual expenses.  The safe harbor may be more beneficial. 

  6. 21 minutes ago, Spoosner said:

    Picked up 3 racks of baby backs from Costco yesterday.  Planning to smoke them this weekend, and I must admit that I'm pretty much a n00b.  I've watched the Franklin videos and some others.  Seems easy enough, but I have some pretty basic questions.

    1. When do you place/fill the water pan?  I plan to start the fire, place the heat deflector, place and fill the water pan, place the grills, and then close and work on getting to correct temp.  Any issues with that plan?

    2. Is it important to keep the racks full size, or can I cut in half in order to fit them easier?  I don't think this will be an issue after the small amount of trimming discussed in the Franklin video, but just in case.

    3. Franklin does his spare ribs at 275, which seems higher than the 225 - 250 consensus.  He also seems to do more of a 2-2 and doesn't put them back on "naked" after being in foil.  Guess this isn't much of a question.  My plan is to do the 3-2-1.

    4. Nobody seems to care about the temperature of the ribs themselves as far as knowing when they're done.  Just make sure they're progressing and feel nice when you think they're done?

    Any other first time pointers welcomed.  I do plan to protect the ends with foil as suggested by solamonte73.

    I never use a water pan for ribs.  I use a rib rack for the ribs. I can get 5 racks easily on a L using rib racks.  Also, for baby backs I do 2-2-1 as opposed to 3-2-1. 

  7. 19 minutes ago, Zepol87 said:

    Staying in Highlands Ranch by the botanical gardens. I will be there 26-30.

    Nothing special in the way of breweries in that area. Davidson’s Liquor will have a great selection to choose from. Parry’s Pizzeria has a huge taplist. Some beers to look for: Weldwerks, Odd 13, 4 Noses, La Cumbre, and Melvin if you like IPAs. I like a lot of the beers from River North as well. 

    • Like 1
  8. 17 hours ago, Zepol87 said:

    2 days left in Minneapolis. Going to surly tomorrow. Anything else with hitting?

    Also headed to Denver next week soplease more recs

    Where in Denver will you be? What days will you be here?

  9. 1 minute ago, Chad Fuck said:

    Seconded.  We're known for our citations around here, not just making blind assumptions.

    McEnany carries a mutated BRCA2 gene.[22] In 2016, conservative radio host Dana Loesch caused a small controversy by mocking McEnany's "flat-chested" and "bleach blonde" appearance, not knowing about her BRCA2 mutation that factored into her decision to undergo a double mastectomy .[23]

  10. 1 hour ago, TwiceHorn said:

    The distributions could then be added to the 529, to continue tax-sheltered growth, without presumably making it so large that non-education distributions eventually have to be made and taxed, and generating any applicable deduction.

     

    Does a 529 have to be funded with "earned income"?  That I don't know, but that may be a limitation on the whole distribute it and stick it in the 529 (assuming the distribution exceeds earned income for that year).

    It does not have to be earned income in Colorado. Not sure about other states.

  11. 21 minutes ago, TwiceHorn said:

    Yeah, I missed the Roth part.

     

    Still think the stretch is probably the way to go as it's more flexible than 529, but has every other advantage.  That is, tax sheltered growth continues, in a self-managed fund (better probably), and no distribution will ever be taxable, whereas cashing out and putting it in a 529 would make non-education distributions taxable, I believe, which would be a fuck.

    Good points. If in a Roth, he would still have to take RMDs. Other benefit for a 529 plan would be if he were in a state that allows a tax deduction for 529 contributions. 

  12. 1 minute ago, TwiceHorn said:

    First, as a beneficiary of an IRA of a deceased, you have a couple of options:  straight cash distribution, which is fully taxable as income, or "inherited" or "stretch" IRA, which remains tax sheltered for growth and income, but has required annual distributions based on your life expectancy, and any other distributions are simply taxed as income.  Which is essentially what the 529 would do, but for the required distributions.  Probably beats the tax hit.

    The latter is the best choice for most.

    I don't know if all three of you must elect stretch IRA, or if you can do it on an individual basis.  You must do it within 1 year of the date of death.

    Since it is a Roth, distributions are tax-free as long as Roth has been open for five years. 

  13. I think with multiple beneficiaries, you can take a lump sum distribution if all beneficiaries want to take a lump sum. If one of the beneficiaries wants to keep the Roth, they need to be split into three IRAs and then you can take lump sum.  Not sure if this is the case, but I thought I remember reading this somewhere. 

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