Post by rickag on Dec 14, 2015 16:33:21 GMT -8
The story unfolds with my mother passing away Nov 2013, one of the Greatest Generation and the best most loving mother ever. During the estate settlement which just was completed a couple of weeks ago, it came to light my parents had put $15,000 into an annuity in my name which accrued to almost $80,000. What a Godsend, but wait, American General, which will be now referred to as The Bunglers, informed me there was a note against the annuity that stood at $60,000.
To decipher the ramifications of this unusual situation both my sister (re: recipient of a similar situation) called, wrote, conjololed for information as to what to do. Their experts said we could close out the annuity take the difference between it and the loan owing taxes on the subsequent $20,000. Au contraire, I just received a 1099 for the $80,000 tax due for 2015. SURPRISE, Merry Christmas from The Bunglers.
Not so bad, life is good, but wait... One of the funds we inherited paid $22,000 we did not expect so our taxes went up accordingly and we are now required to make quarterly payments as of 2014, SURPRISE. In order to consolidate our retirement we rolled that fund into a mutual fund into one we already had but sold at a substantial loss. Not so bad you say it is a tax deductible capital loss . WooHoo, .... Oh wait, only $3,000/yr can be used against capital gains.
Remember The Bunglers, in order to pay the extra taxes we have sell some funds, probably at a loss to pay the SURPISE from them.. WooHoo more tax write off, er um, we don't need those.
For icing on the cake, when my wife and I got married she had a condo she paid $50,000 for at the peak of the housing market. Being morale responsible people we didn't even consider her declaring bankruptcy before we got married to unload this anchor. So we merrily made payments dutifully taking our depreciation off our income taxes. Not so bad, moral high ground and all. SURPRISE, the depreciation expense ends at the end of the year. We can sell this condo for maybe $20,000, not bad except we owe $28,000. OK, we can write off the difference, not so fast buzzard breath, since we depreciated the condo over our blissful 29 years of marriage, not only will we lose $8,000, SURPRISE we will owe captital gains taxes on the selling price of $20,000.
I take full responsibility, I should have known growing up, that everyone should major in tax accounting to weave their way through the morass of government tax liabilities.
Moral of rickag''s long journey, screw the morale high ground., it will grind you to a pulp and spit you out as fertilizer for the next crop of .... Can't think of an adequate description ... Naive fodder .... great tax contributors to an eternal beauracy.... Any suggestions will be gleefully entertained.
To decipher the ramifications of this unusual situation both my sister (re: recipient of a similar situation) called, wrote, conjololed for information as to what to do. Their experts said we could close out the annuity take the difference between it and the loan owing taxes on the subsequent $20,000. Au contraire, I just received a 1099 for the $80,000 tax due for 2015. SURPRISE, Merry Christmas from The Bunglers.
Not so bad, life is good, but wait... One of the funds we inherited paid $22,000 we did not expect so our taxes went up accordingly and we are now required to make quarterly payments as of 2014, SURPRISE. In order to consolidate our retirement we rolled that fund into a mutual fund into one we already had but sold at a substantial loss. Not so bad you say it is a tax deductible capital loss . WooHoo, .... Oh wait, only $3,000/yr can be used against capital gains.
Remember The Bunglers, in order to pay the extra taxes we have sell some funds, probably at a loss to pay the SURPISE from them.. WooHoo more tax write off, er um, we don't need those.
For icing on the cake, when my wife and I got married she had a condo she paid $50,000 for at the peak of the housing market. Being morale responsible people we didn't even consider her declaring bankruptcy before we got married to unload this anchor. So we merrily made payments dutifully taking our depreciation off our income taxes. Not so bad, moral high ground and all. SURPRISE, the depreciation expense ends at the end of the year. We can sell this condo for maybe $20,000, not bad except we owe $28,000. OK, we can write off the difference, not so fast buzzard breath, since we depreciated the condo over our blissful 29 years of marriage, not only will we lose $8,000, SURPRISE we will owe captital gains taxes on the selling price of $20,000.
I take full responsibility, I should have known growing up, that everyone should major in tax accounting to weave their way through the morass of government tax liabilities.
Moral of rickag''s long journey, screw the morale high ground., it will grind you to a pulp and spit you out as fertilizer for the next crop of .... Can't think of an adequate description ... Naive fodder .... great tax contributors to an eternal beauracy.... Any suggestions will be gleefully entertained.