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  • hightower
    replied




    – Two call shifts since the New Year (including the one I’m currently working) on top of my regular work schedule

    – Funded my traditional IRA with plan for conversion to Roth

    – My wife and I both opened Delta Gold Amex’s (our local airport is a Delta hub) for the 75k mile bonus, the first credit cards we’ve opened in almost 10 years

    – Finally settled on an asset allocation after finishing Richard Ferri’s book
    Click to expand...


    We use the Delta Skymiles card exclusively for just about everything.  We've gotten so many free flights or at least discounted with it.  Plus, if you spend enough or fly enough you get upgraded to a Silver or Gold Medallion status which gets you free upgraded seats on flights (if any are available).  They will bump you up to first class or Delta comfort for free.  I just earned silver medallion status, but haven't flown yet.  Hoping for a free first class seat sometime

    Leave a comment:


  • Gas_Doc
    replied
    - Two call shifts since the New Year (including the one I'm currently working) on top of my regular work schedule

    - Funded my traditional IRA with plan for conversion to Roth

    - My wife and I both opened Delta Gold Amex's (our local airport is a Delta hub) for the 75k mile bonus, the first credit cards we've opened in almost 10 years

    - Finally settled on an asset allocation after finishing Richard Ferri's book

    Leave a comment:


  • Antares
    replied



















    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.
    Click to expand…


    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.
    Click to expand…


    That is technically more difficult, but what really matters is that you treat the same situation the same every year. They dont care at all in that situation. I say this from experience since I never get my December check until January, but my 1099 included it for the prior year. So now I count it as last years pay even though I receive it the next year, but I am consistent.

    Your accountant will say there is no such thing as white or black, just lots and lots of grey. They seem to be pretty comfortable doing all kinds of things that my superficial understanding of things makes me not comfortable with.
    Click to expand...


    That's sounds like the likely practical account of the matter, though WealthyDoc may well be right about the letter of the law. I have no 1099s or W-2s, it's all just cash from patients in the form of checks. I have done things this same way for years, so the practice meets your standard of treating the same situation the same way each year.

    Leave a comment:


  • Hatton
    replied







    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?
    Click to expand...


    Wealthy doc you asked for details so here they are.  2.5 years ago I transferred all my retirement assets from Merrill-lynch to vanguard. I mention that because it is very easy to see on vanguards personal performance page the following info.  Total personal investment returns which is broken down by income and market performance.  It also gives your rate of return.  When I did this I had hit my number of 5 million or so and I decided to not retire but just quit ob and work 3 days per week.  Since the vanguard numbers correlate with semi retirement I can say that I have made 1 million since I semi-retired.  I am still adding $6500 via catch up IRA.  I don't think this makes any difference.  I make enough to pay my life expenses working 3 days per week.  The money is reinvesting and hopefully negating my sequence of returns risk. My asset allocation is 64/35/1. Most of the money is in a taxable account.

    Leave a comment:


  • Zaphod
    replied
















    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.
    Click to expand…


    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.
    Click to expand...


    That is technically more difficult, but what really matters is that you treat the same situation the same every year. They dont care at all in that situation. I say this from experience since I never get my December check until January, but my 1099 included it for the prior year. So now I count it as last years pay even though I receive it the next year, but I am consistent.

    Your accountant will say there is no such thing as white or black, just lots and lots of grey. They seem to be pretty comfortable doing all kinds of things that my superficial understanding of things makes me not comfortable with.

    Leave a comment:


  • Antares
    replied













    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.
    Click to expand...


    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.

    Leave a comment:


  • WealthyDoc
    replied




    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?

    Leave a comment:


  • WealthyDoc
    replied
    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

     

     

    Leave a comment:


  • WealthyDoc
    replied










    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.

    Leave a comment:


  • Hatton
    replied
    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.

    Leave a comment:


  • VagabondMD
    replied
    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.

    Leave a comment:


  • EJ at Dads Dollars and Debts
    replied
    - 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

    Leave a comment:


  • DarrVao777
    replied
    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

    Leave a comment:


  • kingsnake
    replied
    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

     

    Leave a comment:


  • childay
    replied
    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..

    Leave a comment:

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