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Old 01-28-2015, 01:51 AM
 
71,584 posts, read 71,751,865 times
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Quote:
Originally Posted by Lowexpectations View Post
How in earth are you still not following what happens when cash is paid and the reinvested?
so I can reinvest the dividends and have a pending tax that needs to be paid. then if I have no free cash flow for the taxes I roll the dice that if I need the money a few months latter to pay the tax I risk selling at a loss to pay the tax.

that sounds like a sound strategy well thought out .

someone should stick to taxes I think and not financial planning.
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Old 01-28-2015, 05:31 AM
 
18,857 posts, read 13,611,388 times
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Quote:
Originally Posted by mathjak107 View Post
so I can reinvest the dividends and have a pending tax that needs to be paid. then if I have no free cash flow for the taxes I roll the dice that if I need the money a few months latter to pay the tax I risk selling at a loss to pay the tax.

that sounds like a sound strategy well thought out .

someone should stick to taxes I think and not financial planning.


You so you either sell at a loss to cover the taxes, sell at breakeven or sell at a gain creating another tax liability for the next tax year to cover last years liabilities
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Old 01-28-2015, 03:00 PM
 
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Quote:
Originally Posted by LowonLuck View Post
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?
But that IS what I do; that's the whole point of what I'm saying: I increase withholdings to take this into account, so that if I do get an unexpectedly large tax bill because of distributions, it's covered. But then, if there isn't such a distribution, I get a large refund, so I've "made an interest-free loan to the government." I rather have the first situation covered than worry about the second.

Anyway, interest rates are so low nowadays that what am I losing here? Maybe $1?
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Old 01-28-2015, 04:14 PM
 
6,091 posts, read 2,823,965 times
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Quote:
Originally Posted by Lowexpectations View Post
How in earth are you still not following what happens when cash is paid and the reinvested?
I am following it just fine.

Is it your belief that if it is reinvested, it is no longer available?

Even if reinvested, it is simple to liquidate the entire position, or just the amount necessary to pay the tax. The money is available. That you aren't understanding this is pretty amazing.
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Old 01-28-2015, 04:16 PM
 
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Quote:
Originally Posted by arrieros81 View Post
if you have a business, right? not personal
Fully deductible for business, and personal (if you itemize).
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Old 01-28-2015, 04:17 PM
 
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Im glad Im from a state with no tax!! Im not getting much. Being a single independent woman with no kids doesnt pay off come tax season lol
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Old 01-28-2015, 04:33 PM
 
71,584 posts, read 71,751,865 times
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Quote:
Originally Posted by TaxPhd View Post
I am following it just fine.

Is it your belief that if it is reinvested, it is no longer available?

Even if reinvested, it is simple to liquidate the entire position, or just the amount necessary to pay the tax. The money is available. That you aren't understanding this is pretty amazing.
simple to liquidate is one thing . being a wise move is another . not only will you have a tax bill but there is a 50/50 chance you could lock in losses selling to raise tax money over the course of a year.

it would be poor planning and poor thinking ahead.
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Old 01-28-2015, 04:38 PM
 
8,857 posts, read 5,132,953 times
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Quote:
Originally Posted by melissapla12 View Post
Im glad Im from a state with no tax!! Im not getting much. Being a single independent woman with no kids doesnt pay off come tax season lol
True, but it pays off lots in other ways! Lol.
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Old 01-28-2015, 04:40 PM
 
8,857 posts, read 5,132,953 times
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Quote:
Originally Posted by mathjak107 View Post
simple to liquidate is one thing . being a wise move is another . not only will you have a tax bill but there is a 50/50 chance you could lock in losses selling to raise tax money over the course of a year.

it would be poor planning and poor thinking ahead.
Locking in losses results in a tax deduction, not a tax bill.
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Old 01-28-2015, 04:41 PM
 
6,091 posts, read 2,823,965 times
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Quote:
Originally Posted by mathjak107 View Post
simple to liquidate is one thing . being a wise move is another . not only will you have a tax bill but there is a 50/50 chance you could lock in losses selling to raise tax money over the course of a year.

it would be poor planning and poor thinking ahead.
I don't disagree. But the only issue that I was addressing was the availability of the money.
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