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Old 07-12-2014, 02:40 PM
 
Location: in the miseries
3,302 posts, read 3,585,481 times
Reputation: 3810

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Quote:
Originally Posted by mathjak107 View Post
it does not have to be an all the time income. it can be one shot deals like in our case.all you need to do is sell off an investment property and bingo ,you are there.

taxes can be insane. this one sale has us hit with federal tax , ny state tax ,ny city tax , the amt penelaty and the medicade surcharge.

the sad part is the itself was subject to long term capital gains taxes of 20% but the effect it had on everything else drove all the other taxes way way higher.
That's right.
When we sell our investment property we'll be 'hit', too.
I did know about the 3.8% Medicare surcharge.
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Old 07-12-2014, 02:44 PM
 
71,840 posts, read 71,919,037 times
Reputation: 49410
lots of folks will be hit as they sell off 2nd homes or anything else they may have owned for a lifetime that appreciated.

people think in terms of that being someones every day income , but it isn't. it is the same with the amt tax. it is so easy to trip it on income once you sell an investment that is taxable even at low capital gains rates.
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Old 07-12-2014, 02:55 PM
 
2,429 posts, read 3,229,527 times
Reputation: 3330
I'm trying to follow....

You sold the property already, but you're not on Medicare yet, right.
So why are you getting hit with the surcharge?

Is it because you're already taking SS -- so even thought you're NOT on medicare yet they still will charge you the 3.8 now?
Also will this be a one time charge for this year's return.

Or because you'll be investing the proceeds, investment income produced by investing those proceeds will mean you'll be over the 'investment income' limit every year?
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Old 07-12-2014, 03:09 PM
 
29,818 posts, read 34,907,142 times
Reputation: 11735
Quote:
Originally Posted by rdflk View Post
So that's only an issue if INVESTMENT income is for a single 200K. OK, so that's just for VERY high income people....not just 'ordinary' folks. Sorry to say I won't have to worry about that. Good to know about, though.


I was, until mathjack (yes, I'm blaming him) got me thinking about taxes. I just can't give up taxes like that, without at least CONSIDERING another way.
One always has to be careful and realize that the many variables impacting a poster may not apply to readers.
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Old 07-12-2014, 03:15 PM
 
29,818 posts, read 34,907,142 times
Reputation: 11735
Quote:
Originally Posted by luvmyhoss View Post
That's right.
When we sell our investment property we'll be 'hit', too.
I did know about the 3.8% Medicare surcharge.
It was passed 2010 with a January 1, 2013 implementation date. It was part of Health Care Reform and not exactly highlighted and featured.
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Old 07-12-2014, 03:23 PM
 
71,840 posts, read 71,919,037 times
Reputation: 49410
Quote:
Originally Posted by rdflk View Post
I'm trying to follow....

You sold the property already, but you're not on Medicare yet, right.
So why are you getting hit with the surcharge?

Is it because you're already taking SS -- so even thought you're NOT on medicare yet they still will charge you the 3.8 now?
Also will this be a one time charge for this year's return.

Or because you'll be investing the proceeds, investment income produced by investing those proceeds will mean you'll be over the 'investment income' limit every year?
It is a new income tax surcharge that applys to all ages and is just an income driven additional tax whether you are on medicare or not.
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Old 07-12-2014, 03:25 PM
Q44
 
Location: Hudson Valley, NY
895 posts, read 767,746 times
Reputation: 1761
Quote:
Originally Posted by mathjak107 View Post
that is why you learn to use the real smart people in the field who figure out all this stuff for a living.

i don't figure out a thing when it comes to my own plan. i use a newsletter for my investments, smart researchers for my tactics , an estate attorney for our planning and recently a financial planner to put all the pieces together for us.

all i need to know is who those who know better than me are.
Isn't it amazing though how many of those really smart people disagree and have different strategies? Ultimately we all have our own predispositions and will gravitate to the talking head that is saying what we want to hear.
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Old 07-12-2014, 03:30 PM
 
71,840 posts, read 71,919,037 times
Reputation: 49410
90% of any plan is sticking to it. You can implant much of what is out there and just by sticking to it you will do fine.

Every asset class always cycles around and has its day in the sun,it is only a question of you sticking with it when its not.

Do you know if you bought equal amounts of gold,cash, an s&p index fund and cash all on the same day gold hit its high back in the early 1980's and just rebalanced each year that your returns on gold would have beaten your return on the s&p right up until recently when gold slid back .

Imagine that,you could not have timed your gold price worse yet decades of sticking with the plan actually made everything ok.
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Old 07-12-2014, 04:18 PM
 
71,840 posts, read 71,919,037 times
Reputation: 49410
Quote:
Originally Posted by rdflk View Post
I'm trying to follow....

You sold the property already, but you're not on Medicare yet, right.
So why are you getting hit with the surcharge?

Is it because you're already taking SS -- so even thought you're NOT on medicare yet they still will charge you the 3.8 now?
Also will this be a one time charge for this year's return.

Or because you'll be investing the proceeds, investment income produced by investing those proceeds will mean you'll be over the 'investment income' limit every year?
all this complexity is why last night we met with a financial planner who is far more up on all this stuff then i am. in fact i picked his brain for 2 hours yesterday.

we have lots of numbers to crunch yet and lots of different scenerios to play through until i come up with the final plan . i spent a lifetime earning and investing to have what we do and now i need to learn how to preserve it and pay no more then my fair share of taxes.

the tax system will let you pay as much of your hard earned money as your fair share as you want to pay based on your ignorance of how to pay less.
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Old 07-12-2014, 04:29 PM
 
29,818 posts, read 34,907,142 times
Reputation: 11735
Quote:
Originally Posted by Q44 View Post
Isn't it amazing though how many of those really smart people disagree and have different strategies? Ultimately we all have our own predispositions and will gravitate to the talking head that is saying what we want to hear.
It is as you say plus. It isn't just how we feel about things but there are so many variables and we know so very little about each other in reality. When it comes to professionals they really overlap in so many ways. When working with individuals they deal with the realities those folks bring to the table. When dealing with a broader audience they operate from assumptions of who they are intending to be addressing. When you read their books they are chock full with thoughts for a wide range of people. When those people bring their thoughts to a forum it is through their self focused lens as that's who they are focused on. With SS we don't know our personal futures and we make assumptions that we will have to live with for the rest of our lives. My wife and I six years into retirement are very content and happy with our choices and how things have played out. If the good Lord keeps us here another ten years we will hopefully still be very happy with our decisions and how things played out it says so on paper now. Do we know that? Of course not.
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