I describe people as spenders or savers; my years as a CPA confirmed this. I have always been a saver, starting with a savings program in elementary school. Even now, a settlement check for a few dollars from a class action lawsuit goes into the bank. My Black Friday shopping is for a few tools for my shop, if I can convince myself I really need them!
This is a quick thought, to which I haven’t given analysis, but, the forgiven mortgage to your daughter has several income and gift tax considerations. IRC 108 addresses COD, Cancellation of Debt income, which creates taxable ordinary income to the debtor; could consider to be a gift, which would require a gift tax return. Also, the IRS scrutinizes “Related Party Transactions,” IRC 267. There are also rules about below market interest rate loans between related parties; the IRS scrutinizes related party transactions for potential tax evasion. As I said, I did not read the statutes, related regs and other substantial authority. I’ve been “out of the game” since I retired 5 years ago. Just thoughts and concerns off the top of my head.
I was a CPA for 40 years, and have the same “accountant gene” as you. After seeing people’s money habits, I describe people as “savers” or “spenders.” I am a saver, and still find it difficult to understand people’s lack of financial understanding and their spending habits; it must be their genes. Saving and controlled spending are easy for me. A year ago, I bought “My Money Journey” for my kids and some of their close friends. Some of the book has rubbed off on them.
My son was stationed at an RAF base for 4.5 years around 2009, and lived in Ramsey St. Mary's. There was a bus stop in front of their house, and we took it to Cambridge, staying for several days in a small local hotel. We also took the train to York, and stayed in rugged place for a few days. We didn't have a car, but public transportation was excellent.
We'd get on a bus, and as soon as we spoke, they knew we weren't locals. We found the female driver to be most helpful; they'd question us about where we were going, then advised on the best ticket to purchase. Our son drove us around when he wasn't working; we toured Sandringham and loved it. We'd go back to the UK in a heartbeat!
I have only two credit cards. I have the notifications set to send email and text notifications for any amount over $1.00. I have notifications on our banking and brokerage accounts set to notify me of every event they will notify me of. One cannot be too careful! I check our accounts daily. I also use a password manager and authenticator app, and my passwords are 20 characters generated by the PM. Sadly, some log-ins do not allow 20 characters, so I use the maximum allowed.
I went to a horse race once with several buddies and they guided me through how to bet. One of them convinced to bet on Turbulator; the horse was a former champion, was injured, but had come back strong and was a sure winner. It came in dead last! At that time in my life, and for many years after, I equated expenditures to how many hours I had to work to earn the money. I don’t remember the total hours of work it took, X hours to get into the track, Y hours for the bet and Z hours for a beer. My conclusion was that bet was not worth the time I had to work to earn the money. I thought of many other things I could have spent the money on that would have provided more enjoyment. No more bets for me. Oh, I did buy a lottery ticket once, when the jackpot reached half a billion. Guess how I did!
I used to hate people like you…it took me 4 times to pass The Exam; I conditioned my first time, nothing the second and third times, and the last two parts on my fourth try. And on the sitting I was a few out from having pneumonia. Congrats, you are in a very small percentile of those passing all four parts the first time! I was in public for almost 49 years. A lady I worked with at a firm was married to a guy who had been to Clown College. We’ve never been on a cruise. I’m interested in trying one, but my wife, not so much.
Comments:
I describe people as spenders or savers; my years as a CPA confirmed this. I have always been a saver, starting with a savings program in elementary school. Even now, a settlement check for a few dollars from a class action lawsuit goes into the bank. My Black Friday shopping is for a few tools for my shop, if I can convince myself I really need them!
Post: The Stories We Tell by Jonathan Clements
Link to comment from November 29, 2024
This is a quick thought, to which I haven’t given analysis, but, the forgiven mortgage to your daughter has several income and gift tax considerations. IRC 108 addresses COD, Cancellation of Debt income, which creates taxable ordinary income to the debtor; could consider to be a gift, which would require a gift tax return. Also, the IRS scrutinizes “Related Party Transactions,” IRC 267. There are also rules about below market interest rate loans between related parties; the IRS scrutinizes related party transactions for potential tax evasion. As I said, I did not read the statutes, related regs and other substantial authority. I’ve been “out of the game” since I retired 5 years ago. Just thoughts and concerns off the top of my head.
Post: A Time to Give
Link to comment from August 24, 2024
I was a CPA for 40 years, and have the same “accountant gene” as you. After seeing people’s money habits, I describe people as “savers” or “spenders.” I am a saver, and still find it difficult to understand people’s lack of financial understanding and their spending habits; it must be their genes. Saving and controlled spending are easy for me. A year ago, I bought “My Money Journey” for my kids and some of their close friends. Some of the book has rubbed off on them.
Post: All Hat No Cattle
Link to comment from August 17, 2024
My son was stationed at an RAF base for 4.5 years around 2009, and lived in Ramsey St. Mary's. There was a bus stop in front of their house, and we took it to Cambridge, staying for several days in a small local hotel. We also took the train to York, and stayed in rugged place for a few days. We didn't have a car, but public transportation was excellent. We'd get on a bus, and as soon as we spoke, they knew we weren't locals. We found the female driver to be most helpful; they'd question us about where we were going, then advised on the best ticket to purchase. Our son drove us around when he wasn't working; we toured Sandringham and loved it. We'd go back to the UK in a heartbeat!
Post: Go-Go or Slow-Go?
Link to comment from August 16, 2024
I have only two credit cards. I have the notifications set to send email and text notifications for any amount over $1.00. I have notifications on our banking and brokerage accounts set to notify me of every event they will notify me of. One cannot be too careful! I check our accounts daily. I also use a password manager and authenticator app, and my passwords are 20 characters generated by the PM. Sadly, some log-ins do not allow 20 characters, so I use the maximum allowed.
Post: How to protect your retirement savings from scammers?
Link to comment from July 31, 2024
I went to a horse race once with several buddies and they guided me through how to bet. One of them convinced to bet on Turbulator; the horse was a former champion, was injured, but had come back strong and was a sure winner. It came in dead last! At that time in my life, and for many years after, I equated expenditures to how many hours I had to work to earn the money. I don’t remember the total hours of work it took, X hours to get into the track, Y hours for the bet and Z hours for a beer. My conclusion was that bet was not worth the time I had to work to earn the money. I thought of many other things I could have spent the money on that would have provided more enjoyment. No more bets for me. Oh, I did buy a lottery ticket once, when the jackpot reached half a billion. Guess how I did!
Post: Checking the Score
Link to comment from July 10, 2024
There are worse activities to be addicted to!
Post: Hitting Reset
Link to comment from June 25, 2024
My apologies, I have my movies confused!! I was thinking of the Grail Knight in Indiana Jones and the Last Crusade.
Post: For Love or Money
Link to comment from May 20, 2024
As the old knight said I’m one of the Star Wars movies “he chose poorly.”
Post: For Love or Money
Link to comment from May 20, 2024
I used to hate people like you…it took me 4 times to pass The Exam; I conditioned my first time, nothing the second and third times, and the last two parts on my fourth try. And on the sitting I was a few out from having pneumonia. Congrats, you are in a very small percentile of those passing all four parts the first time! I was in public for almost 49 years. A lady I worked with at a firm was married to a guy who had been to Clown College. We’ve never been on a cruise. I’m interested in trying one, but my wife, not so much.
Post: Making Waves
Link to comment from March 22, 2024