Tax Tips, Credit Trends, and Best 3 Index Mutual Funds on the Ilyce Glink Show
In addition to speculating on the economic fallout from Japan’s natural disaster and nuclear crisis, we received calls asking for tax tips, credit trends and the benefits (if there are any) of a mutual fund wrapper. IRS Publication 544 talks about the Dispossession of Assets and long-term capital losses and when you can take them. We looked at whether the US is at a credit/debt tipping point and what that means. Finally, we talked about why it’s almost never worthwhile to pay for a Mutual Fund Wrapper.
Do I Have a Short-Term or Long-Term Gain or Loss?
IF you hold the property for 1 year or less, you have a short-term capital gain or loss
IF you hold the property for more than one year, you have a long-term capital gain or loss
These distinctions are essential to correctly arrive at your net capital gain or loss. Capital losses are allowed in full against capital gains plus up to $3,000 of ordinary income.
(My thanks to all of our tax preparers who called the show to correct my original mistake and augment the answer.)
READ MORE: IRS Publication 544: Dispossession of Assets
Credit Trends: Tipping Point of Debt in the Great Recession
By Janet Dedrick
A resounding theme of the Great Recession has been the U.S. consumer deleveraging his debt. Outstanding balances on all major loan types have declined during this economic cycle that began at the end of 2008 as consumers have right-sized their personal finances.
Lower amounts of debt are usually considered “good” for the economy, but the Catch-22 is that debt grows the economy until it reaches a tipping point. We are living through the tipping point.
READ MORE: Are We At A Credit Tipping Point
Dan Solin has been contributing to the Equifax Personal Finance Blog and shared his vision for a 3-index mutual fund portfolio that will have you properly diversified.
Vanguard’s Total Stock Market Index Fund (VTSMX) for exposure to the domestic stock market.
Total International Stock Index Fund (VGTSX) for exposure to the international stock market.
Total Bond Market Index Fund (VBMFX) for exposure to the domestic bond market.
Here are financial advisor Roger Wohlner’s 10 Questions You Should Ask
**READ MORE on the Equifax Personal Finance Blog:
Mark Teytel: GetOutStartOver.com
Mark Teytel came to the studio to discuss his theory on what he calls a “silent foreclosure moratorium.”