Ask for a letter to be mailed confirming closure

Why would you want to avoid carryovers? They can be used in future years either to offset higher-taxed ordinary income or future capital gains.

Accumulating stashes of capital loss carryovers is a valuable part of a comprehensive tax-management strategy.

I think you'd have to make a lot more money to make up for a loss in flexibility.

Could you find a job that is as flexible and pays more? Maybe, but it's really hard to know what the working environment is like until you actually work somewhere (unless you know someone well who already works there).

If you do leave, make sure you leave on good terms, so you could always return if you want to in the future.

The only potential downside is if you are offsetting gains that would fall in the 0% bracket.

If A&B agrees, the $5k should be paid by the enterprise before splitting the remaining profit (just as they would for paying any other service provider).

It would still come down to the nature of the arrangement between A and B - is the $20k a straight contribution of capital to the enterprise that is expected to be repaid, is it a form of purchasing their 50% share in the profits (with B doing so through other means), etc.

Find out what the car is selling for before going into the dealer.

Go to your bank and find out what they can do for a car loan. They love to give loans to customers with good credit.

Do not discuss down payment until you find out the final price of the car.

Do not discuss down payment until you hear the financing plan and compare it to the bank offer.

Be willing to say no.

When you choose to buy the car, adjust the financed amount by your down payment.

I wish I could work from home but my job requires I work on a secured network. My wife works from home and homeschools our daughter. My job covers all health, dental and vision, and I’m not even close to maxing retirement for 401k or IRA. You’ve got a young family and I can’t say enough that having the flexibility your current boss allows you is something you may not find. Money might be nice, but that flexibility loss will absolutely cause issues your husband isn’t considering. Y’all have it pretty sweet, I wish I could work from home and be with my kids more but I’ve got a decent job with great benefits.

Remember the chip shortage during the pandemic?

Yes, there's a chip in your credit/debit card.

Yes, that means everything from cars to CCs are impacted.

• https://thelocalreporter.press/microchip-shortage-now-felt-in-your-wallet/
• https://www.paymentsdive.com/news/chip-shortage-drives-up-card-costs/624317/
• https://www.catalystcorp.org/learning-center/conferences/forum/news/2022/08/09/the-global-chip-shortage-is-now-the-time-to-worry

What cards?

A proper TLH swaps among a pair of similar but not identical funds, so being out of market isn't an issue. However, if you have suboptimal substitute, you can be stuck with it (e.g. going from total stock to S&P 500 and being stuck with it, reducing your holdings from 4000 to 500.

If you tax loss harvest (TLH) while you are in a low tax bracket, you don't save much tax.

If you TLH, your new cost basis is lower, and you reset holding period to short term. Therefore, you might find rebalancing more expensive in the next 12 months.

Also, it can be easy to mess up a TLH with wash sale if you have the same pair of funds in multiple accounts or have DRIP on.

I understand the point about the plateau but $100k is just not it for HCOL/VHCOL areas. Here in SF Bay Area, rent for a 3bd can easily be over $3k (mortgage likely as much or more), and OP said childcare, though temporary, is $3100/mo. So that’s $73k+ already without accounting for any other expenses, savings, etc. at all. Bringing in $200k versus $100k for example would make a world of difference in quality of life and financial security.

Oh this is great advice. Thank you!

Is this the Imported Vehicle Safety Compliance Act? I had someone tell me they bought a BMW and was flown out to Germany to pick up the car in order to get some kind of minor discount. This law seems to prevent that.

The other scenario is let’s say A wants to be paid 5k for their time in prepping : cleaning home prior to sale. B agrees

I'm not seeing any deductions for my mom in the benefits statement I got in the mail:

-Medicare Medical Insurance

-Medicare Prescription Drug Plan

-US Fed tax withholding

-Voluntary Fed tax witholding

Let’s say it was the sale of a home , 20k was paid to a contractor by A. Homes sells for 100k

I think you means 8 hours of OT a week and you have out your average pay of $35.7/hr with OT differential included from the math (assuming a differential exists). That isn’t terrible, but if you’re working 8 hours of OT a day, that’s terrible. It doesn’t sound flexible at all as that’s 80 hours a week. And at $87k a year, the math doesn’t work.

TLH basically pushes a bigger tax burden into the future. If you want to take the tax savings now and use the $$ for something, it's sensible.

I would be careful to only TLH enough to avoid carryover -- you can only negate capital gains + 3k of ordinary income each year.

Are you living in India working remotely for a US company? Or are you physically residing in the USA?

The real answer is it depends on the nature of the arrangement between A and B - was A covering prepaid expenses in lieu of B covering labor (for example),there are an infinite number of possibilities here, hopefully they have there shared understanding down in writing.

I won’t pile on with what others have said, but why does your spouse think you need to change jobs?

It sounds like you’re happy where you are, are you really willing to sacrifice your happiness for an extension on your house?

The only downside is if you're in a low income year. If you are, then this year you want to harvest gains and not losses, particularly if you can do so in the 0% long-term cap gains bracket.

Otherwise, TLH is generally beneficial if you're in your working years, since it's moving some income from this year to a future year when your tax rate will probably be lower.

That being said, if you need to sell investments to fund a Roth IRA, that typically makes sense whether those investments are at a gain or a loss.

Yeah I would have done it from the start if I had been receiving their tax forms but they never sent them to me and there are some barriers with me creating online SSA accounts for them (see my other post). My parents do not know how to use a computer.