What have you done so far in 2017?

[Kamban]

We had an unusual entry into 2017.

Our plane from India to USA landed in Abu Dhabi on 31st at 11.55 PM and as we were taxiing on the runway the pilot suddenly informed us that he was going to start the New Year countdown and asked us to join him. So we shouted 10,9,8...1, Happy new year along with the pilot.  Never had that experience before, and unlikely to occur in the future.

[WealthyDoc]

Antares wrote:

Deposited all checks received since ~Thanksgiving, so will be taxed as 2017 not 2016 income.

Click to expand...

Be sure you understand the "Doctrine of Constructive Receipt!"

That sounds like 2016 income to me.

https://www.irs.gov/publications/p538/ar02.html

[Antares]

WealthyDoc wrote:

Antares wrote:

Deposited all checks received since ~Thanksgiving, so will be taxed as 2017 not 2016 income.

Click to expand…

Be sure you understand the “Doctrine of Constructive Receipt!”

That sounds like 2016 income to me.

https://www.irs.gov/publications/p538/ar02.html

Click to expand...

You may well be right. However, a good accountant ought to know the rules and also the realities of how they are treated in practice. Mine is smart and experienced, and has advised me that this practice is common and benign. However, I will raise it with her again just to be sure. Thank you, WD!

[Med0000]

hightower wrote:

That’s impressive!  Share some details on how you did it?

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Living on <40% of my income was the key. I have a wife (who did not work outside the home) and three small kids. We have a nice home with >20% equity and no other debt. My comp package is >$400k so with some good decisions it is plenty of money to work with. Half of the balance had rates <3% but we are SO GLAD they are gone.

I feel all tingly and numb like the tourniquet was just let down...now what do I do with my money?

Here's to a prosperous new year!

 

[PhysicianOnFIRE]

Med0000 wrote:

now what do I do with my money?

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Spend a little. Save a lot!

[childay]

Since you just reminded me,

Contributed to traditional IRA x2 to convert to roth

Contributed 10k to 529 plan

Working on various tax documents and payments..

[kingsnake]

Contributed $5500 to my trad IRA for Roth conversion

Contributed $5500 to wifes trad IRA for Roth converstion

Contributed max ($6750?) to HSA for transfer to TD Ameritrade to invest

 

[DarrVao777]

It's been a productive 1st week:

1) Negotiated a deal to cut my workload further. I expect to be down to 80% of last year's workload before January is over. I do expect to be compensated better than last year as well thanks to better workflow

2) Applied for the Chase Sapphire Reserve card even though I told myself to simplify, simplify, simplify. Almost kinda hoping they reject me

[EJ at Dads Dollars and Debts]

- Been on 2 hikes in my backyard

- Been on call (currently am) including going in at night for an urgent echocardiogram

- Spent time with family and friends

- Purchased turbotax to begin the tax season

- Started contributing to various financial forums

- Continue fighting off a cold

- Debtaing the financial plan for the year

[VagabondMD]

I just learned that my son, a senior in high school, was admitted and will receive a $6000 scholarship to his first choice college. In my day, that $6000 would have been virtually full tuition, but now, well, it's still better than a sharp stick in the eye.

[Hatton]

I just hit a milestone.  I made 1 million totally passively since I quit ob and only work 3 days per week.  It happened Thursday.  This took 2.5 years.  Awesome the power of compounding.

[WealthyDoc]

Antares wrote:

WealthyDoc wrote:

Antares wrote:

Deposited all checks received since ~Thanksgiving, so will be taxed as 2017 not 2016 income.

Click to expand…

Be sure you understand the “Doctrine of Constructive Receipt!”

That sounds like 2016 income to me.

https://www.irs.gov/publications/p538/ar02.html

Click to expand…

You may well be right. However, a good accountant ought to know the rules and also the realities of how they are treated in practice. Mine is smart and experienced, and has advised me that this practice is common and benign. However, I will raise it with her again just to be sure. Thank you, WD!

Click to expand...

Ok.  I'm glad you will check with your accountant and appreciate my unsolicited advice.  I think your mind and plan has already been made, but that is fine.  I don't want this forum to be a place to argue.  For the sake of other readers though, I wanted to elaborate a bit.  Doctors tend not to take accounting or business law so they don't know things that are basic to other professionals.  The IRS requires us to report our gross income.  The 2016 gross income includes checks that were received in 2016.  You could have deposited them and they were part of your gross income.  That issue isn't open to debate.  It is federal law.  Whether others comply or whether you would realistically get caught or whether it is worth a risk or whether a fine would be large or whether an auditor could prove it etc are all separate issues in my mind.  My view is that I want to comply with all laws both in letter and in spirit.  If it is black and white I don't consult experts no matter how smart and experienced they are.  Ultimately, my name will go on the 1040 form.  I do think an experienced CPA can be helpful in gray areas that can be interpreted differently.  I just don't think the definition of gross income is one of those gray areas.  Having said that there are legal ways to minimize federal income tax through income shifting/timing, etc.  For example, if I go to a conference in November 2016 but I don't submit my receipts for reimbursement until January 2017 that would be part of my 2017 gross.  If I submitted them right away and received a reimbursement in December that would be 2016 gross income.  The date of putting the funds into a bank account have nothing to do with the definition of gross income.

[WealthyDoc]

1. adjusted federal and state withholding

2. cut back work hours to reduce income and stress

3. contributed max to ROTH IRA

4. contributed max to spousal ROTH IRA

5. contributed minimum to state 529 to obtain 2017 tax credit

6. contributed maximum to other 529 accounts allowed without paying gift tax

7. changed contributions to increase bonds to avoid being excessive in equities

8. obtained reimbursements for 2016 HRA and FSA

9. cashed in Marriott rewards for free hotel for 2 nights on the Magnificent Mile, Chicago

10. verified that 2016 contributions to 529 were received

11. verified that 2016 TLH transaction on 12/30/16 was completed

 

 

[WealthyDoc]

hatton1 wrote:

I just hit a milestone.  I made 1 million totally passively since I quit ob and only work 3 days per week.  It happened Thursday.  This took 2.5 years.  Awesome the power of compounding.

Click to expand...

This is fantastic.  I'm sure we would all love to hear more about this.  Care to share anymore details?  Asset allocation? All within retirement accounts?  How much from dividends vs capital gains? Spend any of that, etc?

[Antares]

WealthyDoc wrote:

Antares wrote:

WealthyDoc wrote:

Antares wrote:

Deposited all checks received since ~Thanksgiving, so will be taxed as 2017 not 2016 income.

Click to expand…

Be sure you understand the “Doctrine of Constructive Receipt!”

That sounds like 2016 income to me.

https://www.irs.gov/publications/p538/ar02.html

Click to expand…

You may well be right. However, a good accountant ought to know the rules and also the realities of how they are treated in practice. Mine is smart and experienced, and has advised me that this practice is common and benign. However, I will raise it with her again just to be sure. Thank you, WD!

Click to expand…

Ok.  I’m glad you will check with your accountant and appreciate my unsolicited advice.  I think your mind and plan has already been made, but that is fine.  I don’t want this forum to be a place to argue.  For the sake of other readers though, I wanted to elaborate a bit.  Doctors tend not to take accounting or business law so they don’t know things that are basic to other professionals.  The IRS requires us to report our gross income.  The 2016 gross income includes checks that were received in 2016.  You could have deposited them and they were part of your gross income.  That issue isn’t open to debate.  It is federal law.  Whether others comply or whether you would realistically get caught or whether it is worth a risk or whether a fine would be large or whether an auditor could prove it etc are all separate issues in my mind.  My view is that I want to comply with all laws both in letter and in spirit.  If it is black and white I don’t consult experts no matter how smart and experienced they are.  Ultimately, my name will go on the 1040 form.  I do think an experienced CPA can be helpful in gray areas that can be interpreted differently.  I just don’t think the definition of gross income is one of those gray areas.  Having said that there are legal ways to minimize federal income tax through income shifting/timing, etc.  For example, if I go to a conference in November 2016 but I don’t submit my receipts for reimbursement until January 2017 that would be part of my 2017 gross.  If I submitted them right away and received a reimbursement in December that would be 2016 gross income.  The date of putting the funds into a bank account have nothing to do with the definition of gross income.

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No, I have no wish to violate the law. I actually thought what I was doing was ok. And it was only when you were good enough to inform me of it that I heard of the concept of "Constructive Receipt". Then, since I trust my accountant and rely on her representations, I wondered whether we had had a full enough discussion, and whether she had been telling me about the letter of the law or its interpretation. So I will talk to her about it. But let me ask you to make sure I understand  -- if I receive a check from a patient on December 31 2016, but deposit it on January 4 2017, that money counts as 2016 income? I always use my bank statement which documents deposits in the calendar year as the "official" record of revenue for the year.