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- Continuation of Schwab being dumb yesterday:
- My withdrawal triggered a margin loan because the cash from tsla sales hadn’t cleared yet.
- Called and asked why the settlement wasn’t restricted to their back office, yielding the usual instantaneous result for the client. They said it was strange, and it isn’t scheduled to clear until tomorrow
- This results in 2 days of margin interest (on >10k). She said to call back tomorrow after it clears and she’ll waive/credit it.
- Always remember: Taxes are the biggest expense in almost every individual’s life. More than mortgage/rent, more than bills, more than medicine, more than food. You are paying your government for their services more than you’re paying your doctor for your health, more than you’re paying your mechanic for your car, more than your grocer for your nutrition, more than the home you live in, more than your phone, more than anything else.
- Mahlstedt LLC tax notes.
- Entity Classification Election (ECE). Have to file within 75 days, otherwise LLCs default to sole proprietorship. Can save up to 15.3% for various taxes including FICA if you elect differently.
- First year deductions for business filing:
- 5k in startup costs.
- 5k in organizational expenses.
- First year deductions for personal filing:
- Business costs, passthrough to personal. If the costs of the startup exceed the revenue, you can pass the losses through to your personal filing.
- Recurring deductions:
- Write loan agreement from personal to business. Then you can deduct business expenses from personal. No max.
- Healthcare. If you offer through business, you can deduct.
- IRS code section 199A. Deduct 20% of business profits on personal returns.
- https://www.irs.gov/newsroom/tax-cuts-and-jobs-act-provision-11011-section-199a-qualified-business-income-deduction-faqs
- Home office deduction (from personal). Regular method (% of everything, but beware recapture tax) vs simplified option ($5/sqft*300sqft=$1500 deduction).
