Taxes and Investing

The Master Archive!

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Stalking the Accountant for Sport

By Keith Taxguy / February 10, 2018 / 5 Comments

It’s been an exciting week in the accounting world. The first full week of the traditional tax season is in the books with nine more left to go. As far as I can tell there have been no casualties.

Your favorite accountant is happy to report this is the smoothest tax season in years in his office. Three or four years ago I met Mr. Money Mustache and he put me on the map (Thank you, Pete!) it created a deluge of demand I was ill prepared to handle. The problem was I had no idea what I was getting into. Those problems seem to be fully resolved.

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Preliminary Report on Estimated Tax Savings with the New Tax Law

By Keith Taxguy / February 9, 2018 / 4 Comments

Tax season is still early in the tooth but patterns are starting to emerge.

My software allows me to use current year data to estimate results based on the Tax Cuts and Jobs Act changes. With a couple hundred returns under the belt already the impact of the changes are mostly expected with a few surprises thrown in.

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Dealing with the Emotions of a Volatile Stock Market

By Keith Taxguy / February 7, 2018 / 23 Comments

Recent volatility in the stock market has people reassessing their appetite for risk. Investing in a bull market is easy as it seems the only way equities go is up.

The recent bull market has an added way of lulling people into a false sense of security. Last year many indexes never saw even a 5% pullback even once. Some didn’t see a 3% decline at any point! This is a highly unusual situation confirming for some people the stock market doesn’t test your resolve as often as it does.

In the past week we’ve had a > 5% intraday swing in the market indexes. Many individual stocks had even greater moves!

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Stalking the Accountant: Into the Abyss

By Keith Taxguy / February 3, 2018 / 6 Comments

The Wealthy Accountant gave away money this week! On Wednesday I set the random number generator a spinning and in a nanosecond a subscriber was $100 richer.

Sara N of Buffalo, NY was our winner. I give a choice of a PayPal transfer or an Amazon gift card. Sara asked for the gift card and Amazon emailed the code straight to Sara. Congratulations, Sara! Thank you for subscribing.

If you didn’t win this drawing there are plenty more. The dates and terms are published on the Where Am I calendar. There are two drawings for three winners in February. I never recommend the lottery, but if you get a ticket for free, why not!

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The Real Reason the Stock Market is Going Up

By Keith Taxguy / February 2, 2018 / 13 Comments

After nine years of steady growth in the economy and stock market both indicators have taken a sharp turn north. Economic stimulus in the form of tax cuts in an already good economy holds the possibility of destabilizing the whole economic structure.

There is ample concern over the staying power of the advancing stock market. Valuations are at or near record highs in all measures. All news seems to be good news. Predictions for future gains have reached nosebleed territory.

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How to Deduct Unreimbursed Business Expenses Without Itemizing

By Keith Taxguy / January 29, 2018 / 6 Comments

Recent tax law changes have gutted many itemized deductions. State and local taxes are limited starting with tax year 2018. What many people are forgetting is that certain miscellaneous deductions and job expenses are also no longer deductible.

Schedule A has suffered many changes. Miscellaneous deductions, subject to 2%, are eliminated. Common deductions in this area include tax preparation fees, safe deposit box fee, legal expenses to protect income, certain job related expenses and unreimbursed employee business expenses.

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Crying Over Spilled Milk or What to Do if You Missed the Stock Market Rally

By Keith Taxguy / January 26, 2018 / 26 Comments

Crying over spilled milk is an adage most of us first heard at a young age. Minor inconveniences are blown out of proportion when they happen. Eventually someone says you should stop crying over spilled milk

We’re living a spilled milk event as I write. The stock market and the economy have been growing steadily for about eight years now. Constant media covered convinced a large percentage of the population things were dire. We were scared shi+less and tucked our hard-earned money in the mattress. There was no way you would be tricked into investing in a bad economy.

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Tax Cuts Don’t Create Value, This Does

By Keith Taxguy / January 24, 2018 / 6 Comments

The latest tax cuts have sent the eight year old stock market rally on a steeper trajectory after 300% gains to date. Tax cuts and interest rate reductions have a habit of sparking market rallies, but only one has anything to do with value.

To understand why the market is rallying so hard you have to understand what people expect the corporate tax cuts to do. You also need to understand if these gains are based on real increases in value or only a mirage.

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