U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Retirement
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 01-12-2016, 02:26 PM
 
Location: Silicon Valley
3,644 posts, read 1,651,627 times
Reputation: 6234

Advertisements

I think the plan for hers would be to move back into her home after it's just the two of us and we're nearing our respective ends for a couple years and then sell the home. That way we can get the personal exemption on the profits. If we did it to mine, I'd be subject to depreciation recapture, and I don't think I would get the exemption, so I'd have to SS 1031 the funds into something else and take the lower basis.
Reply With Quote Quick reply to this message

 
Old 01-12-2016, 03:23 PM
 
Location: SoCal
13,516 posts, read 6,448,935 times
Reputation: 10113
The IRS may go after you, but if you don't care then don't. Congress didn't pass the law for you to ignore it.
Reply With Quote Quick reply to this message
 
Old 01-12-2016, 09:33 PM
 
Location: Close to an earthquake
890 posts, read 681,682 times
Reputation: 2390
Quote:
Originally Posted by artillery77 View Post
I think the plan for hers would be to move back into her home after it's just the two of us and we're nearing our respective ends for a couple years and then sell the home. That way we can get the personal exemption on the profits. If we did it to mine, I'd be subject to depreciation recapture, and I don't think I would get the exemption, so I'd have to SS 1031 the funds into something else and take the lower basis.
It's a little more complicated than that and an explanation of why is beyond the scope of a post by someone who knows so do check with your tax guy/gal so you're better informed about this.
Reply With Quote Quick reply to this message
 
Old 02-07-2016, 06:29 AM
 
7,986 posts, read 11,701,964 times
Reputation: 10485
Quote:
Originally Posted by mathjak107 View Post
be very careful guessing at tax outcomes when dealing with the taxing of ss.


you have two moving targets that can do some crazy things with marginal tax rates .

a single person can take a mere 1k over the threshold for getting ss taxed and that 1k sees what amounts to a 46.50% marginal tax rate .

it is insane the way the 2 moving targets interact .

as an example :

Harry is an individual with $36,000 of income but a hefty $22,000/year of Social Security benefits. His Social Security provisional income is $36,000 + $11,000 = $47,000, which is $13,000 over the upper threshold for individuals. As a result, $15,550 of his Social Security benefits are subject to taxation (which is 50% of the amount from $25,000 to $34,000, plus 85% of the excess of provisional income above the $34,000 threshold), which puts his AGI at $51,550. Even after a standard deduction and one personal exemption, Harry's taxable income would be $51,550 - $6,100 - $3,900 = $41,550, which places him in the 25% tax bracket.

If Harry now takes an additional $1,000 from his IRA, his provisional income increases to $48,000, his taxable Social Security benefits increase to $16,400, and his AGI rises to $53,400. The net result: Harry's AGI increased by $1,850 for "just" a $1,000 IRA withdrawal, and with a 25% tax bracket his liability will be $1,850 x 25% = $462.50, which equates to a whopping $462.50 / $1,000 = 46.25% marginal tax rate!
OMG, this is terrible. How complicated for every little bit you take out of a 401K.
What is the threshold for married?
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Retirement
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top