From: owner-persfin-digest@lists.xmission.com (persfin-digest) To: persfin-digest@lists.xmission.com Subject: persfin-digest V5 #23 Reply-To: persfin Sender: owner-persfin-digest@lists.xmission.com Errors-To: owner-persfin-digest@lists.xmission.com Precedence: bulk X-No-Archive: yes persfin-digest Monday, June 15 1998 Volume 05 : Number 023 In this issue of the Personal Finance Digest: RE: Offshore Banks and Self Liquidating Loans Re: Tax on IRA Withdrawals long-term loss Re: persfin-digest V5 #22 MCI Re: Tax on IRA Withdrawals New tax laws on real estate capital gains tax on IRA withdrawals RE: persfin-digest V5 #22 The messages posted to the Persfin-Digest are opinions and are not intended to substitute for qualified professional advice. Subscribers should seek the services of qualified professionals for such advice. The publisher, Internet provider, and Digest contributors cannot be held responsible for any loss incurred as a result of the application of any of the information provided here. To ask questions or provide answers, send your email to "persfin-digest@lists.xmission.com". Also, you can "reply" to the persfin-digest and your email tool should fill in the same address. However, if you "reply", be sure to edit the subject field in your email to reflect your topic. Copyright (c) 1998, Jeff Salisbury POSTED SUBSCRIPTION FEE: $20/year. Payment is optional. You will not be billed. The Digest is available to all subscribers, whether or not they pay. I do not discriminate either in favor of paying subscribers or against nonpaying subscribers. If you feel that the information presented here is worth the fee, and you feel comfortable paying it, send cash, check, or money order (U.S. funds), payable to "Jeff Salisbury", to: Jeff Salisbury 65 North 1300 East Logan, Utah 84321 Payment will be acknowledged by e-mail if you include an e-mail address. Subscribe: e-mail majordomo@xmission.com, text: subscribe persfin-digest Unsubscribe: e-mail majordomo@xmission.net, text: unsubscribe persfin-digest ---------------------------------------------------------------------- Date: Wed, 10 Jun 1998 14:46:45 EDT From: Subject: RE: Offshore Banks and Self Liquidating Loans In a message dated 6/4/98 12:45:04 PM EST, owner-persfin- digest@lists.xmission.com writes: > Date: Tue, 02 Jun 1998 09:01:41 -0400 (EDT) > From: GenesisMC@aol.com > Subject: Offshore Banks and Self Liquidating Loans > > Does anyone have any information on either of these two issues? Are > offshore > banls really "trust worthy" and how do self liquidating loans work? Some of > the things I have read about each seem too good to be true. And we all know > what they say about something that is "too good to be true". So if anyone > has > more information, good or bad, I would love to hear about it. > > Sorry if this has been answered in a previous issue but I don't always get a > chance to read every issue. > > Thanks in advance, > Rich Flat out and out scams. What's funny is that the self-liquidating loan scam relies on borrowing millions - as if anyone will qualify for millions in loans without millions in collateral! :) - - ------------------------------ Date: Wed, 10 Jun 1998 16:35:56 -0400 From: Jim McGrath Subject: Re: Tax on IRA Withdrawals >I'm 63 years old and have a regular IRA account (from my yearly >contributions) and an IRA account (made up of my 401(k) rollover). > >The way I understand it, the taxable portion of IRA withdrawals are >figured from 8606 information. Also, I believe 8606 information does >not include rollover information. > That is because rollovers are entirely untaxed. An 8606 is filed anytime a nondeductable (after tax) IRA contribution is made. >Therefore is it true that withdrawals from my regular IRA have a >different tax calculation than withdrawals from my rollover from 401(k) >IRA account? No. An IRA is a single entity that may have many accounts. A withdrawal is treated as if it is coming from the sum of all accounts. Form 8606 is used to calculate what portion of the withdrawal is not taxable. Jim - - ------------------------------ Date: Wed, 10 Jun 1998 15:22:13 -0500 From: "Dalmia, Bipin K." Subject: long-term loss hi: i have a question regarding long-term capital losses. do i have to use LT losses to offset LT gains or can i use them to offset short term gains? the reason is obvious, my LT gains are taxed at 20% and ST gains at 28% and i would rather offset 28% gains than 20% gains. but i am sure that in its infinite wisdom, congress will make me offset LT gains before ST gains encouraging ST behaviour. also, does the same apply to 'worthless stock'? i have some stock for a company that filed for bankruptcy and i do not see any hopes of getting anything for that stock. (for the curious, it is Venture Stores) thanx, bip - - ------------------------------ Date: Wed, 10 Jun 1998 17:33:22 -0400 From: "Cal Lester" Subject: Re: persfin-digest V5 #22 I have seen no discussion on the financial aspects of Life Insurance since Ira left. Does that mean that no one out there has any questions about Life, Disability or Health Insurance? Is any one considering the use of Life Insurance in business, Buy/Sell, Key Person, Pension? I will be happy to discuss the relative merits of any Life Insurance Product (as I have done in the past). Cal Lester CLU Insurance course Coordinator Broward Community College This is neither an offer nor any attempt to sell any insurance product. - - ------------------------------ Date: Wed, 10 Jun 1998 18:50:56 -0400 From: eric Subject: MCI MCI is offering online signups on the internet. Includes $15/ mo intern= et access. Any 'fine print" that I'll find out about too late? - - ------------------------------ Date: Wed, 10 Jun 1998 18:43:36 -0400 From: Rich Carreiro Subject: Re: Tax on IRA Withdrawals >I'm 63 years old and have a regular IRA account (from my yearly >contributions) and an IRA account (made up of my 401(k) rollover). > >The way I understand it, the taxable portion of IRA withdrawals are >figured from 8606 information. Also, I believe 8606 information does >not include rollover information. Well....sorta. Form 8606 serves two purposes: (1) To track the total of non-deductible contributions. (2) To compute the taxable part of a withdrawal from *any* traditional IRA account when *any* non-deductible contribution has been made to *any* traditional IRA account. Remember, for almost all tax purposes all your IRA accounts are aggregated into a single IRA. It is true that with respect to (1), 8606 has no "rollover information", but with respect to (2) it most certainly does -- namely the total value of *all* traditional IRA accounts. >Therefore is it true that withdrawals from my regular IRA have a >different tax calculation than withdrawals from my rollover from 401(k) >IRA account? Absolutely not. The ratio between the non-taxable part of a withdrawal and the total withdrawal (no matter what traditional account the withdrawal came from) is the same as the ratio of total remaining non-deductible contributions to the total value of all traditional IRA accounts. Form 8606 will lead you through all this. Rich Carreiro rlcarr@animato.pn.com P5-100/RedHat Linux 4.1 - - ------------------------------ Date: Wed, 10 Jun 1998 23:04:07 EDT From: Subject: New tax laws on real estate capital gains I read in a book about the new real estate tax law which states that one qualifies for no capital gains tax if a property has been one's primary residence for 2 years, and then rented for 3 years (actually, sold before that 3 year period is up). The book seemed very clear about this. I've heard others say that it must be one's primary residence when the house is sold, not a rental. Can anyone clarify this? Thanks... - - ------------------------------ Date: Thu, 11 Jun 1998 4:22:07 -0400 From: JONESW@CCSUA.CTSTATEU.EDU Subject: tax on IRA withdrawals R. A. Bauer asks how the tax on IRAs is calculated. The tax-free percentage is the total of all non-deductible contributions (from your 8606) divided by the total of ALL IRA holdings, whether those IRAs came from regular ones or rollovers from 401k. Example: With $30,000 in ordinary IRAs, $10,000 non-deductible contribution total listed on 8606, and $160,000 in rollovers from 401k, the tax-free percentage is 10000/200000 = 5%. So you pay income tax on 95% of whatever you withdraw, REGARDLESS of whether it comes from the ordinary IRA or the rollover. The percentage has to be recalculated every year. Bill Jones - - ------------------------------ Date: Sun, 14 Jun 1998 11:38:08 -0400 From: "Nelson E. Timken, Esq." Subject: RE: persfin-digest V5 #22 I have a question regarding ESOPS and ISOPS. My mother in law worked for Roosevelt Savings (TR Financial- ROSE) and received stock as an employee benefits plan, both in an ESOP and an ISOP where she received shares free and had the option to buy shares at a discount to market. She wants to roll over these shares, now that she has been laid off due to the takeover by Roslyn into an IRA. The plan seems to indicate that she can do this. Anyone have any thoughts? Nelson E. Timken Contact me at: http://onelist.com/subscribe.cgi/investing-list - - ------------------------------ End of persfin-digest V5 #23 **************************** - To unsubscribe to persfin-digest, send an email to "majordomo@xmission.com" with "unsubscribe persfin-digest" in the body of the message. For information on digests or retrieving files and old messages send "help" to the same address. Do not use quotes in your message.