Furry
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I just figured it would be normal to adjust your books based on observable reality rather than accountants being told how fast things depreciate at accounting school and not allowed to adapt from that.
Investing General Discussion
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Sanrith Descartes
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If you change the depreciation schedule for an item that has a generally accepted schedule then its cooking the books. A vehicle has an accepted schedule of 5 years. A residential rental property has a 27.5 year schedule. You "shouldn't" deviate from the schedule under GAAP.
In the weeds: There are accepted variations. In the residential rental example above, technically you can depreciated the various components are their individual accepted depreciation schedule. So if the house is 200k, but the appliances are 20k, technically its ok to depreciate the building for 180k at 27.5 years and the appliances at 20k over 10 years.
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Sanrith Descartes
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Except, if you tell your investors, creditors (and the IRS) you are following GAAP, then you really should be following GAAP.
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Kithani
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I think you would be wrong on that. I see why you think it would make sense but if you think about it giving accountants a grey area / subjective control over the numbers could lead to a very ugly situation
Furry
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I decided to research this subject because I like to be informed when I speak. The GAAP method allows the accountant to make a determination on depreciation that is informed by past experience, industry norms, and manufacturers claims among other things. The biggest thing is that such a determination must be reasonable and documented. So the accounting records should include reasoning for the depreciation schedule changing.
Considering all these companies hire third party accountants to come up with these schedules and there’s a consensus move between all of them, cooking the books as an explanation seems extremely unlikely.
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Sanrith Descartes
I was forced to self-deport from the /pol thread
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Sanrith Descartes
I was forced to self-deport from the /pol thread
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I may have asked this previously, but why IBIT and not just buy the BTC yourself on an exchange? Why trust the middleman (even if it is Blackrock)?
Sanrith Descartes
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Blazin
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BTC on non retirement , IBIT on retirement account
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Sanrith Descartes
I was forced to self-deport from the /pol thread
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So with the year winding down I did some soul searching and came up with my top 3 trades of the year. And by top 3 I mean shittiest 3. While anything is possible the last 6 weeks of the year, I don't envision making a move worse than these 3. I hope.
#3. Buying a load of MP puts the week before Trump and the US govt take a 10% stake in the company.
#2. Writing covered calls on my AMD shares before they announce their strategic partnership with OpenAI
#1. Selling my Day 1 shares of PLTR for about $60 a share.
I am omitting liquidating my stake in GOOGL because I did it for ideological reasons and not for financial reasons.
#3. Buying a load of MP puts the week before Trump and the US govt take a 10% stake in the company.
#2. Writing covered calls on my AMD shares before they announce their strategic partnership with OpenAI
#1. Selling my Day 1 shares of PLTR for about $60 a share.
I am omitting liquidating my stake in GOOGL because I did it for ideological reasons and not for financial reasons.
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Khane
Got something right about marriage
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Rangoth
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I started to take that bear MSTR position today. Starting at 5k as I wait for more signals but that's already up ~=10%. Did Jan16 @ 160$/165$. I think that's about as low as it gets so I will sell either as the 15m/30m truly starts to turn north or if it's up 100%+(probably not but possible with a decent drop by the end of the week)
Question is if I add to it or not as it goes. The indicators shows its going to drop more but in this market anything is 1 tweet away from being wiped out in the reverse direction.
lol, nvm, im a little paperhands bitch. I sold for 25% gain as it bombed here in the last 15 minutes. Absolutely will re-enter during next mini-upswing. 25% was too much to shy away from in a single day and now my money will be settled for tomorrow if I want to re-enter.
I have never learned how to let things run well because too many times I've been burned when I'm up this amount only to watch it swing back and then I hover at 2% gains for 3 weeks and hate myself.
Question is if I add to it or not as it goes. The indicators shows its going to drop more but in this market anything is 1 tweet away from being wiped out in the reverse direction.
lol, nvm, im a little paperhands bitch. I sold for 25% gain as it bombed here in the last 15 minutes. Absolutely will re-enter during next mini-upswing. 25% was too much to shy away from in a single day and now my money will be settled for tomorrow if I want to re-enter.
I have never learned how to let things run well because too many times I've been burned when I'm up this amount only to watch it swing back and then I hover at 2% gains for 3 weeks and hate myself.
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swayze22
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Retirement Account question -
I won't max my 401k this year because I quit my job and didn't change my contributions prior to doing so. I will be over the income limit for contributing to a ROTH IRA.
1) Can I contribute the difference between my unmaxed 401k retirement account and the current yearly cap for contributions to a new IRA?
2) Can I then contribute the $7,000 (annual cap) to the IRA and convert that to a ROTH? (Backdoor ROTH) Would these be two separate accounts?
Haven't performed the backdoor ROTH before and maybe some of you have insight or have done it before.
Sanrith Descartes
??
I won't max my 401k this year because I quit my job and didn't change my contributions prior to doing so. I will be over the income limit for contributing to a ROTH IRA.
1) Can I contribute the difference between my unmaxed 401k retirement account and the current yearly cap for contributions to a new IRA?
2) Can I then contribute the $7,000 (annual cap) to the IRA and convert that to a ROTH? (Backdoor ROTH) Would these be two separate accounts?
Haven't performed the backdoor ROTH before and maybe some of you have insight or have done it before.
Sanrith Descartes
??
Sanrith Descartes
I was forced to self-deport from the /pol thread
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1) Access to 401k contributions for any part of the year count for the entire year. So when calculating how much (if any) credit you get from a Traditional IRA you have to check the box "Yes, I have a 401k" for that tax year.Retirement Account question -
I won't max my 401k this year because I quit my job and didn't change my contributions prior to doing so. I will be over the income limit for contributing to a ROTH IRA.
1) Can I contribute the difference between my unmaxed 401k retirement account and the current yearly cap for contributions to a new IRA?
2) Can I then contribute the $7,000 (annual cap) to the IRA and convert that to a ROTH? (Backdoor ROTH) Would these be two separate accounts?
Haven't performed the backdoor ROTH before and maybe some of you have insight or have done it before.
2) in the same tax year? It wouldn't provide any benefit. You get a possible tax credit on one hand and then have to also count the contribution as income. Unless I am missing something.
Lots of variables on the backdoor to provide a simple answer. Benefits are driven by your taxable income, current tax brackets and the like and how you envision your retirement tax brackets
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swayze22
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Yeah probably too many variables for this specific instance. TLDR - I want to contribute more to retirement but make too much to contribute to normal roth ira. I've been maxing my annual 401k contribution, except this year because i quit my job therefore no more salary deferrals.
Was thinking I could contribute remaining amount to reach my annual cap ($23,500) but then also contribute the IRA cap of $7,000 - but appears I can only contribute $7,000 to an IRA regardless of other contributions and the $23,500 cap only applies for salary deferral, which I had conflated.
So really the only cap that matters currently is the $7,000 IRA cap.
I don't see my tax bracket being greater than 32% at retirement which is why i'm trying to add some traditional IRA/Roth IRA on top of my traditional 401k.
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Rangoth
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If you are just trying to long term(1 year + or 10-15 retirement type thing). There is not a *huge* disadvantage to a normal brokerage account. You'll only pay long term capital gains when you sell so if you just bought SPY with whatever extra income you had each year there is really not any tax. You would pay tax on the dividends I guess but that really won't be much.
Most of the pain comes in on normal accounts when it comes to trading, because a 1k profit for example in a 401k is tax free *at the time the profit is made*. In a regular account you would owe 35$ or whatever "instantly". But if you just buy major ETF and look away it's not a big deal.
Most of the pain comes in on normal accounts when it comes to trading, because a 1k profit for example in a 401k is tax free *at the time the profit is made*. In a regular account you would owe 35$ or whatever "instantly". But if you just buy major ETF and look away it's not a big deal.
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Sanrith Descartes
I was forced to self-deport from the /pol thread
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