vania-janet/multiturn-rag-retrieval-data huggingface dataset:
Graduating from college is probably one of the most fulfilling triumphs you’ll ever achieve in your entire life. However, that joy also brings bigger responsibilities in life that could affect tax time too. This specific time in your life will have a lot to offer and before the winds of change take you to wherever you dream of, here are some advices from [Southbourne Tax Group](http://www.thesouthbournegroup.com/) to make your taxes easier where you can get a refund during filing time and save money as well. If your modified adjusted gross income is below $80,000 and you’re single, up to $2,500 of the interest portion of your student loan payments can be tax deductible, and below $160,000 for married person filing jointly. Job hunting expenses can be tax deductible too but there are exceptions such as expenses involved in your search for a new job in a new career field and working full-time for the first time. Major tax breaks are expected in case you are moving to a new and different city for your first job. Get a jump start on retirement savings with your company’s 401(k). Each year, you can secure up to $18,000 from your income taxes by contributing on one. If you have a family coverage, you could secure $6,750 from contributing to a health savings account in case you are enrolled in a high-deductible health plan. And if you are single, you can secure up to $3,400. Placing your money into a flexible spending account could keep an added $2,600 out of your taxable income. Getting big deductions for business expenses is possible if you are planning to be a freelancer or to be your own boss as a new college graduate. Southbourne Group also advises saving at least 25% of what you’re earning for the IRS. Research more about lifetime learning credit and understand its importance. You can claim up to $2,000 of a tax credit for post-secondary work at eligible educational institutions. This is possible if your adjusted gross income is below $65,000 as a single filer, or below $131,000 as a married person filing jointly. Saving money has a lot of benefits and one of which is cutting your tax bill.
I got down voted for my comment.  But, this is exactly what a lot proponents of higher capital taxes argue.  That, if you are not a hoarder of wealth; then, you should not worry about a high capital gains tax.    And, again as the video clearly demonstrated.  Capital gains prevent labor gains; where the lower and middle classes earn.
Think carefully about the added expenses.  It may still make sense, but it probably won't be as cheap as you are thinking.  In addition to the mortgage and property taxes, there is also insurance and building maintenance and repairs. Appliances, carpets, and roofs need to be replaced periodically.  Depending on the area of the country there is lawn maintenance and now removal. You need to make sure you can cover the expenses if you are without a tenant for 6 months or longer.  When tenants change, there is usually some cleaning and painting that needs to be done. You can deduct the mortgage interest and property taxes on your part of the building.  You need to claim any rent as income, but can deduct the other part of the mortgage interest and taxes as an expense.  You can also deduct building maintenance and repairs on the rental portion of the building.  Some improvements need to be depreciated over time (5-27 years).  You also need to depreciate the cost of the rental portion of the building.  This basically means that you get a deduction each year, but lower the cost basis of the building so you owe more capital gains taxes when you sell. If you do this, I would get a professional to do your taxes at least the first year.  Its not hard once you see it done, but there are a lot of details and complications that you want to get right.
"Be careful here: If ACME were in California, I would pay taxes on USD 17,000 because I   had revenue of 20,000 and expenses of 3,000. To CALIFORNIA. And California taxes S-Corps. And, in addition, you'd pay $800 for the right of doing business in the State. All that in addition to the regular Federal and State taxes to the State where you're resident. Suppose that ACME is in Britain (or anywhere else for that matter). My   revenue and expenses are the same, but now my money has been earned   and my expenses incurred in a foreign country. Same thing exactly. Except that you'll have to pay taxes to the UK. There may be some provision in the tax treaty to help you though, so you may end up paying less taxes when working in the UK than in California. Check with a licensed tax adviser (EA/CPA licensed in your State) who won't run away from you after you say the words ""Tax Treaty"". Does it even make sense to use my S-Corporation to do business in a   foreign country? That should be a business decision, don't let the tax considerations drive your business."
what I'm saying is my meager 1600 gain could have incurred an extra $170 in taxes if there was no capital gains tax.  It's basic math, not rocket science.  that's just the numbers at my current tax bracket(25%) which isn't that high.  I seriously don't get how you can't understand basic numbers and the fact that the capital gains tax is a huge advantage for a small time investor like me.
Good news! It will be enough if you make the most important decision after retirement; that is, the decision to live within your means. With $220,000 per year in 2015 resources, will you live in the same size home in the same location as you do now? Or will you downsize a bit and move to a town with more reasonably priced homes and lower taxes? Apply the same thinking to all of your expenses. In my opinion, making the decision to live within your means is the biggest decision you can make going into retirement.
Having lived in both places, I have to say you can find a higher income in the US for the same job and can live in a small town versus having to live in a big city in Canada to find decent salaries.  For similar sized cities, the cost of housing is significantly lower in the US than Canada.  That is your biggest factor in cost of living.  If you are thinking of NYC or San Francisco, there are no comparable size cities in Canada and you would probably be better off in Canada.   My tax preparer was amazed at how much I paid in Capital Gains taxes when I left Canada.  Maybe it is different now but I doubt it. The biggest free lunch in the US is a generous capital gains exemption when you sell your primary residence without any lifetime cap or cap on the number of times you can do it.  There are rules on how long you have to live in it before selling. For investment real estate, all expenses are deductible in addition to fictional depreciation so with a mortgage you can have positive cash flow and pay no income tax.  You can keep doing tax deferred exchanges into bigger and bigger rentals.  When you are close to retirement, you can exchange into your ultimate beach home, rent it out a few years, then convert to a primary residence.
The capital gains is counted towards your income. If you cash out 1 Million dollars, you have a 1 Million dollar income for that year, which puts you at the 39.6% tax bracket. However, because that 1 Million dollars is all long term capital gains, you will only have to pay 20% of it in long term capital gains taxes. The best you can do is to cash the 1 Million dollars through several years instead of just all at once. This will put in a lower tax bracket and thus will pay lower capital gains tax.
Whether you're self-employed or not, knowing exactly how much tax you will pay is not always an easy task.  Various actions you can take (e.g., charitable donations, IRA contributions, selling stocks) may increase or reduce your tax liability. One tool I've found useful for estimating federal taxes is the Excel 1040 spreadsheet.  This is a spreadsheet version of the income tax return form.  It is not official and is not created by the IRS, but is maintained as a labor of love by a private individual.  In practice, however, it is pretty much an accurate implementation of the tax calculation algorithms encoded in the tax forms and instructions. The nice thing about it is that it's a spreadsheet.  You can plug numbers into various slots in the spreadsheet and see how they affect your federal tax liability.  (You may also owe state taxes depending on what state you live in.)  Of course, the estimates you get by doing this are only (at most) as accurate as your estimates of the various numbers you plug in.  Still, I think it's a free and useful way to get a ballpark estimate of your tax liability based on numbers that you can more easily estimate (e.g., how much money you expect to earn).
This is the same as any case where income is variable.  How do you deal with the months where expected cash flows are lower than projected? When I got married, my wife was in the habit of allocating money to be spent in the current month from income accrued during the previous month.  This is slightly complicated because we account for taxes (and benefit expenses) withheld in the current months' paychecks as current expenses, but we allocate the gross income from that check to the following month for spending. The benefit of spending only money made during the previous month is that income shocks are less shocking.  I was working for a start-up and they missed payroll that normally arrived on the first of the month.  Most of my co-workers were calling the bank in a panic to avoid over-draft fees with their mortgage payments, but my mortgage payment was already covered.  Similarly, when the same start-up had a reduction in force on the first day of a new quarter, I didn't have to pull any money from savings during the 3 weeks I was unemployed. In the end, you're going to have to allocate money to the budget based on the actual income--which is lower than your expectations.  What part of the budget should fairly be reduced is a question you and your wife will have to figure out.
Hitting the 25% marginal rate does not mean all of your earnings are taxed at 25%, only those that exceed the top of the 15% bracket. You can deduct any expenses for upgrading or repairing your apartments, those are subtracted from the earnings before tax is calculated as income, so you will probably stay in a lower marginal rate. Property tax will hit you annually, and capital gains tax will hit you when you sell them at the end. If you already have experience with this business in your home country, then this sounds like a good option for you. The only caution that I would give you is to find an accountant to help you with your taxes and pay for a consultation before you get started so that you know what to track that will help him/her minimize your tax bill.
First, I would want cash around the time I made the move.  I would like enough for a 20% down payment, moving expenses, and enough for 6 months of mortgage payments on the existing house.  This way if the house does not sell quickly, you are safe.  As you approach the time it comes to move, you can work backwards on how much time you would need to accumulate that kind of money. Second, this does not have to be an all or nothing kind of thing.  Perhaps you use some of the proceeds to beef up your retirement, some to pay down the mortgage, and some for savings.  You could be very wrong about the market, even so it is a wonderful opportunity to add to your nest egg at such a young age.  My own self prefers to do things in ratios.  In your case I might do 10% of the proceeds in for retirement, 10% for savings, and 80% for mortgage reduction.  (You may want to also add some charitable giving.)   I really like paying down the mortgage.  Not only is it a risk less investment, it reduces your personal risk.
I am pretty sure he is referring to the fact that hedge funds manage over $2.1 trillion of capital, a good deal of which comes from pension funds and charitable endowments BUT their fees are falling and someone has got to do it.
Granted, given the [low wages relative to capital returns](http://www-tc.pbs.org/prod-media/newshour/photos/2012/12/06/Andrew_Smithers_chart_blog_main_horizontal.JPG), demand (consumption) is overly suppressed. Resulting in an [overproduction](https://en.wikipedia.org/wiki/Overproduction) problems. Which makes debt spending look even more financially appealing, because it's not actually suppressing the already excessive demand constraints. But this is because you wages have been suppressed. So instead of paying taxes you are working for a lower income. In fact the loss of wages, relative to capital returns, i.e., your cost of living, actually well exceeds your tax cut. Your just paying those taxes through lower wages, or an increased cost of living, instead of taxes out of your paycheck. So your being conned out of that money while the people doing it are pretending to cut taxes. The same [applies to the rich (PDF)](https://www.gsb.stanford.edu/sites/gsb/files/jmp_simcha-barkai.pdf) in a different way. There is a limit to how rich you can get from a population of poor people. When you cut wages too far below productive capacity to save cost it dries up demand. People can't afford as much of your product as you can produce. So they cut jobs, i., production, to match market demand, which drives demand even lower. Pushing inflation and the velocity of money to historic lows in spite of an increased money supply. This also makes it unprofitable to invest in new productive capacity when market demand is already saturated. Wages, relative to capital returns, must increase to fix it. But if you take it too far it drives inflation to unacceptable levels. But, at the present ratio, we are a long ways from that.
Because people investing capital want to understand their risk exposure.  They don't mind risk, they mind uncertainty and they mind interference with markets.    With Obama in office, the ever swelling regulatory state creates a great unknown: How much central government meddling will there be in incremental taxes, healthcare expenses, and so on.
I am surprised no one has mentioned the two biggest things (in my opinion).  Or I should say, the two biggest things to me.  First, 1099 have to file quarterly self employment taxes.  I do not know for certain but I have heard that often times you will end up paying more this way then even a W-2 employees.  Second, an LLC allows you to deduct business expenses off the top prior to determining what you pay in taxes as pass-through income.  With 1099 you pay the same taxes regardless of your business expenses unless they are specifically allowed as a 1099 contractor (which most are not I believe).  So what you should really do is figure out the expense you incur as a result of doing your business and check with an accountant to see if those expenses would be deductible in an LLC and if it offsets a decent amount of your income to see if it would be worth it.  But I have read a lot of books and listened to a lot of interviews about wealthy people and most deal in companies not contracts.  Most would open a new business and add clients rather than dealing in 1099 contracts.  Just my two cents... Good luck and much prosperity.
Sure! Started working since I was 12, used that money to buy a car, and was working full time starting at 15 years old. By 17 had two full time jobs and banked all that money, besides buying a car.  At 18 fulfilled my dream and was hired as a police officer. Did the academy for 6 months, saving all of that money to buy a trailer to live in for cheap.  Max out pay for my department was 5 years, so by 23 years old I was making 68,000 a year. With overtime and details included( I basically worked anytime I could, 8 hour shift with either an 8 hour detail or double shift) usually kept one day off, working my other day off.   My take home for the year after taxes was somewhere around 90k give or take, with my living expenses barely passing 25k a year. Banked all that money for years. When I hit 25ish I got together with my now wife, also an officer making the same amount. She also received about 300k from a settlement. So with both of our salaries plus money invested since I was about 14, annual take home was about 200k.   Saved for 2 more years and at 28, used the 300k to buy a house and pay off any vehicles and credit card debt.  Paid cash for the house so no mortgage, no car payments, just utilities and taxes for the year.  With the budget set we were able to retire living just like we were. There is a lot more to it but that's the quick summary!
Do not do investing with a bank.  Do investing with a low cost investment company like Vanguard, Fidelity, or Charles Schwab.  The lower the expenses of the fund the better. The additional money your account earns because of lower overhead expenses is so dramatic over the course of your investing it is mind boggling to me.   The lower the expenses, the more of your money you keep, which feeds the power of compound interest. http://www.fool.com/investing/mutual-funds/2008/09/03/this-fund-charges-what.aspx
"I must be part of the lower class then, for I will never have enough resources to incur such taxes.  I receive so little (despite making two to three times my salary for my employer) that I qualify for many low-income services.  From here, even your ""upper middle class"" are moneyed elite.  Any fault in how I sound can be attributed to my lack of skill in expression.  After being soundly beaten by the *tetsubo* of a malformed labor market (wielded by an invisible hand, no less) I know intimately its every spike and rivet."
There is no wage limit on the 1.45% Medicare tax withholding's, and there is certainly no harm in saving Medicare taxes because it will not affect future Medicare benefits. So for taxpayers earning well over the max SSA wages, they will just save the 1.45% Medicare taxes without affecting their SSA contributions and resulting retirement benefits. So again, it all comes down to personal situations. Depending on your earnings and goals, employer plan may or may not be the way to go. Personally, for my lower earning clients, friends and family, I tend to recommend that they do whatever they can to maximize their social security benefits in retirement. So I would advise them to either use the external provider account, or the employer plan but with post-tax contributions so you don't lower the SSA withholding's but can still claim the income tax deduction on your tax return. YMMV -Dan"
I'm assuming your talking USA. There are two ways to look. If you know you should pay on the cap gains, the best way to handle that separately from your salary is to file a quarterly tax payment.  That, I understand, is what the self-employed have to do. I'm in the situation where at some point, probably this year, the company that employs me will be bought out, and I will owe capital gains taxes on my shares gobbled up in the buy-out.  It's a cash-for-stock transaction.  So, in my case, I've just adjusted my W-4 to take advantage of the safe-harbor provision related to taxes I payed in 2016 and my salary.  The details vary depending on your situation, but in my case, I've calculated what it will take in W-4 allowances to make sure I pay 110% of my 2016 tax payment (after refund).  I'm not worrying about what the actual taxes on those shares of company stock will be, because I've met the rules for safe-harbor. Safe harbor just means that they can't penalize you for under-withholding or underpayment.  It doesn't mean I won't have to write a check on april 15.
Their headquarters are just north of Sioux City, Iowa, across the river in South Dakota.  They located there for tax reasons, same as Gateway Computers back in the 1990s.   Much of the area's wealth is located just across the river in South Dakota and starves Sioux City of the taxes it needs to serve the overall population. It's one of the quirks of being in a three-state metro area (source: this is my hometown).  I could tell you more about Beef Processing Inc (BPI) around here.  They're one of the biggest sources of wealth in the area, the owners are heavily involved in the charitable scene here, too.
My $.02 is that the problem boils down to the disparity in the tax rates.  Money is taxed at a lower rate than people---in other words, money made by money (capital gains) is taxed at 15% and money made by people (income) is taxed at 35%.  Over time, money will naturally flow to wherever the tax is lowest because tax rates factor heavily into ROI.  We should equal the playing field, or even tax people at a lower rate than money.  Then there will be job creation, and more money will flow to employee's pockets as income, since it's no longer hugely advantageous to hold the money and invest it.  Consider employees to be another investment class, and lower the barriers to investing in that class.  Anyone care to opine on this?
"I'm 25, make ~40k/yr, have about 18k in investments right now.  all money I've earned mind you.  I sold some stock last year for a capital gain of 1800.  that's a cap gains tax of $270, if the cap gains tax didn't exist I would have paid 450.  that's an extra $180 in taxes that hits me right in my middle class, trying to build a nest egg, guts.  would you please stop with all the bullshit about the capital gains taxes being there for the ""moneyed elite""  you can see how just a small sale could have incurred extra taxes for me, could you imagine someone who may be older and has larger gains to report?"
Here are a few examples related to climate change: &gt; &gt;Annenberg Political Fact Check, ""Scientist to CEI: You Used My Research To ""Confuse and Mislead,"" May 26, 2006. &gt; &gt;""Thank you for emitting"", Real Climate, May 18, 2006 &gt; &gt;News Bureau, University of Missouri-Columbia, ""MU Professor Refutes National Television Ads Downplaying Global Warming: Engineering Professor Curt Davis says TV Spots are Misrepresenting His Research,"" May 19, 2006. &gt; astonishingly, they have financial ties to the Koch Brothers: &gt; &gt;Charles G. Koch Charitable Foundation (Koch Family Foundations) &gt; &gt;Claude R. Lambe Charitable Foundation (Koch Family Foundations) &gt; &gt;David H. Koch Charitable Foundation (Koch Family Foundations) &gt;"
"There is a term for this. If you google ""House Hacking"" you will get lots of articles and advice.  Some of it will pertain to multifamily properties but a good amount should be owner occupied and renting bedrooms. I would play with a mortgage calculator like Whats My Payment.  Include Principle, interest, taxes and insurance see how much it will cost.  At 110k your monthly fixed payments will depend on a number of factors (down payment, interest, real estate tax rate and insurance cost) but $700-$1000 would be a decent guess in my area.  Going off that with two roommates willing to pay $500 a month you would have no living expenses except any maintenance or utilities.  With your income I would expect you could make the payment alone if needed (and it may be needed) so it seems fairly low risk from my perspective. You need somewhere to live you are used to roommates and you can pay the entire cost yourself in a worst case. Some more things to consider.. Insurance will be more expensive, you want to ensure you as the landlord you are covered if anything happens.  If a tenant burns down your house or trips and falls and decides to sue you insurance will protect you.   Capital Expenses (CapEx) replacing things as they wear out. On a home the roof, siding, flooring and all mechanicals(furnace, water heater, etc.) have a lifespan and will need to be replaced.  On rental properties a portion of rent should be set aside to replace these things in the future.  If a roof lasts 20yrs,costs $8,000 and your roof is 10years old you should be setting aside $70 a month so in the  future when this know expense comes up it is not a hardship. Taxes Yes there is a special way to report income from an arrangement like this.  You will fill out a Schedule E form in addition to your regular tax documents. You will also be able to write off a percent of housing expenses and depreciation on the home.  I have been told it is not a simple tax situation and to consult a CPA that specializes in real estate."