Jofi Joseph

Comments:

• For all of the complaints that this post demonstrates how the tax code is hopelessly complex, there is an easy fix: eliminate the preferential tax treatment for home sales altogether. That way, if you make a profit on your home, you pay capital gains taxes on the profit, just as you would when you sell Amazon stock for a profit. Of course, the majority of Americans who own their homes would howl in outrage, and that's why we have indecipherable tax regulations ...

  Post: Are We Qualified?

  Link to comment from January 17, 2024

• Does your non-compete actually prevent you from being a volunteeer tax preparer?

  Post: Taxing Our Brains

  Link to comment from December 20, 2023

• For an ETF focused on AI and robotics, you may wish to take a look at the Robotics and Artificial Intelligence (BOTZ) ETF. I have a small holding in it in my taxable brokerage account. While NVidia is its largest holding at 14%, the next five largest holdings include firms such as Intuitive Surgical and Keyence -- e.g. non megacap stocks. Expense ratio is .69%. Perhaps worth a look: Robotics & Artificial Intelligence ETF (BOTZ) (globalxetfs.com)

  Post: Look Under the Hood

  Link to comment from September 22, 2023

• There is a misconception for some that taking out a RMD obligates you to spend the money. Nothing prevents you from taking a RMD and then re-investing those funds in a taxable account, thereby maintaining your savings. An RMD simply ensures the government recoups taxes on the funds which were initially contributed on a tax-free basis. It is not a mandatory spending tool.

  Post: Under the Tree?

  Link to comment from October 31, 2022

• Thanks, Rick, you are correct here, based on the language in the IRS Publication. Frankly, I am surprised as you are generally required to report all income received, even if the income ultimately is not taxable. Thanks for the source citation here.

  Post: Tax Shelter

  Link to comment from June 13, 2022

• Technical comment: even if a 1099-S is not issued, you are still required to report the proceeds from a home sale on your tax return (and demonstrate that you qualify for the primary residence exclusion). This is no different than if you receive income from another entity, you are still required to report it even if you do not receive a corresponding 1099-MISC or 1099-NEC form. Now, in practice, the odds the IRS will follow up with you when no 1099-S is issued is next to nil, but the requirement is still there. Policy comment: when people wonder why housing prices have gotten so out of whack in our country, the Primary Residence exclusion is a contributing factor, as it effectively subsidizes home sale values. If Bob sells Amazon stock at a $250,000 profit after holding it for two years while Sally sells a primary residence for a $250,000 profit after living in it for two years. only Bob pays taxes on his capital gain. I remain flummoxed as to why anyone believes this is fair or good policy. Jofi Joseph, CPA

  Post: Tax Shelter

  Link to comment from June 13, 2022

• While there is much to recommend in these alternative investments, one underappreciated disadvantage is the complexity involved in creating yet another account on another platform for this purpose. Your heirs may not be particularly pleased with handling a $5K account at Masterworks. I have a Fundrise account due to the unique advantages of private real estate access, but shy away from the others because I do try to keep my financial portfolio fairly simple and straightforward.

  Post: On the Fringe

  Link to comment from September 13, 2021

• I Bonds are a great option for cash savings that you will not necessarily need in the next year, but perhaps in the one to five year range. No one is arguing this should be your entire portfolio allocation. This post has some good points, but I would also take a look at Jason Zweig's recent column in the Wall Street Journal on why I-Bonds are suitable to complement an existing portfolio. Also, given the recent inflation data, I would be highly surprised if the next interest rate reset for I Bonds does not exceed the current 3.54%.

  Post: Good Not Great

  Link to comment from June 9, 2021