In reply to: As a person who hates doing finances, I couldn't agree more posted by ravenium
but ravenium just said that he dislikes finances/doesn't understand that stuff well and you drop some schedule C/K1/rental property knowledge on him?
Next time just post, "get a road bike."
Just busting your chops Jojo. Your advice is sound.
That I didn't really drop any knowledge, I just used some fancy words to signal how much smarter I am than he is, as is par for the course in the BR (even more so on the political board.)
You could have advised him to set up an esop plan through an s Corp which would have allowed him to deduct the principal contributions while deferring and possibly eliminating taxes on the growth.
Ask me sometime about setting up a static port NAT through your firewall and we'll see who laughs!
(seriously though, thanks for at least making my brain jog a bit - I've always found money, politics, and religion to be the things i didn't discuss in polite company and NDN often suits all three!)
Do the math but then dump the money in t-bills or a high-yield money market account designated just for that purpose.
Total firm income was somehow lower last year, and because I paid the safe-harbor quarterly amounts, I wound up being owed a refund. But it looks like the IRS is paying over 7% on refunds, so it makes more sense to use money from my 4.9% savings account to pay the 1st quarter estimated taxes for this year than to apply the refund to it.
Did I miss something?
That appears to be on corporate overpayments, per the link below.
If that is the same for individuals, then yea I'd overpay and pick up the yield. Liquidity would be my only real concern here.
pay estimated. Well, I should say I should have and paid a small penalty, so uh, don't be me.
It sounds like planning to save up (via high yield - hey, CDs are going for around 5%!) for the estimated bill come April each year is the best route. I think some peoples' advisors sell to cover for them, but I don't think I'm that fancy.
but it's easier to just buy a road bike.