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Old 01-26-2015, 07:55 PM
 
6,045 posts, read 2,790,381 times
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Quote:
Originally Posted by Lowexpectations View Post
If you want to sell to raise the cash it is
The issue was the supposed difficulty of meeting an unexpected tax expense. It is no more difficult than selling.
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Old 01-26-2015, 08:25 PM
 
18,719 posts, read 13,492,794 times
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Quote:
Originally Posted by TaxPhd View Post
The issue was the supposed difficulty of meeting an unexpected tax expense. It is no more difficult than selling.
I'm not sure what's hard for you to understand. In most cases there's no change in overall asset value and there was no cash before or after the transactions therefore said person would have to come up with the cash
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Old 01-26-2015, 11:34 PM
 
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Quote:
Originally Posted by Lowexpectations View Post
I'd rather have an extra 300-500 a month to do whatever I wanted with than purposely loaning it out
Sometimes this is unavoidable with refundable credits. I only started my return but it looks like I will get $5000 back from federal and $1700 from state. I only had $300 and $800 withheld from my check all year. The refund goes right to savings and yes I would rather have it each month, but it does not work that way.
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Old 01-26-2015, 11:36 PM
 
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Quote:
Originally Posted by EdJS View Post
It's hard to have to pay a $2500 bill unexpectedly.
Not really. Put money in savings every pay period. Remove money from savings if owe taxes at end of the year. Or are you saying that saving is the part that is hard to do?
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Old 01-26-2015, 11:40 PM
 
2,303 posts, read 2,248,297 times
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Quote:
Originally Posted by LowonLuck View Post
Sometimes this is unavoidable with refundable credits. I only started my return but it looks like I will get $5000 back from federal and $1700 from state. I only had $300 and $800 withheld from my check all year. The refund goes right to savings and yes I would rather have it each month, but it does not work that way.
I agree that you can't always plan for that, but in theory if you think you'll get a refund due to credits like that, all you need to do is under withhold. If you're not sure about your taxes, I don't recommend it, but if you're expecting something like a mortgage interest deduction or a EIC deduction to make things better and you can guarantee it's coming, you can definitely under withhold for that.
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Old 01-27-2015, 03:41 AM
 
70,830 posts, read 71,189,712 times
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Quote:
Originally Posted by Jeo123 View Post
You do need to make sure you don't owe too much though. Otherwise they start forcing you to make quarterly payments and penalizing you if you have too large of a bill.

Avoid that though, and yeah, owing and paying at the last minute is the way to go.
since we are selling off our real estate holdings and retiring, in the years we sell something we owe a whopper in taxes .

i will just send in one estimated tax payment that insures we payed at least as much as the year before which if we didn't have a sale is quite alot less and we can owe 100k + with no penalty.
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Old 01-27-2015, 03:54 AM
 
Location: Santa Cruz
698 posts, read 638,262 times
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Quote:
Originally Posted by Lowexpectations View Post
Tell me something I didn't know
So your suggestion still equates to him being taxed. Not sure your point
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Old 01-27-2015, 03:58 AM
 
70,830 posts, read 71,189,712 times
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Quote:
Originally Posted by EdJS View Post
I do because it might not turn out to be an interest free loan to the government. Each year I don't know for sure until I find out what the year end mutual fund distributions turn out to be. This year they were very large, so I know I'll owe a lot of taxes on them, so I definitely didn't loan a lot of money to the government.

In years past I used to follow the advice of "not loaning much to the government", only to be burned when the year-end distributions meant I suddenly had a huge tax bill.
i agree , we typically will send in an estimated payment because in up years the distributions have turned out to be quite high. we usually end up still owing. i think once in the last 15 years i actually was owed money back from the state.

i just applied it to next years tax bill and said keep it.

if a few hundred buck makes that much difference either way in your life you got more to worry about then you over paid a few bucks.

in fact we sold some commercial lease rights this year we held and the day the check cleared we send an esitimated tax payment of 100k in for federal, state and local taxes. we will still owe but i didn't want to bother sending a check every quarter.

i sent it up front and done. i can't do anything with the money short term so the 100 bucks or so i give up is worth it just not having to part with it later.

once it is gone and off my balance sheet it is out of mind. .
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Old 01-27-2015, 03:58 AM
 
Location: Santa Cruz
698 posts, read 638,262 times
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Quote:
Originally Posted by TaxPhd View Post
Is it just me, or is talking about the amount owed, or refunded, kind of silly? All it indicates is how accurate you were with your withholding/estimated payments. Nothing more.
You're getting offtrack with symantics

He doesn't feel he should be paying that much money in taxes, that's the point.
He had other things in his mind which would've ben nicer to spend the money on
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Old 01-27-2015, 04:03 AM
 
Location: Santa Cruz
698 posts, read 638,262 times
Reputation: 718
Quote:
Originally Posted by randomparent View Post
By choice, we always owe, and for that reason we will wait until the last damn second to file.
You must be my husbands twin!

Ok I stand corrected.
We are getting back $32 this year
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