xxutz

For your accountant

Tax year 2019

Personal · Jan 1, 2019 to Dec 31, 2019

As of Dec 31, 2019 · Prepared with xutz · Demo data: every name and figure is fictional · Figures marked est. are estimates

Realized gains
$0
$0 short · $0 long
Dividends
$302
received
Interest received
$12,620
Investment interest
$28,964est.
paid, by the trace
Deductible now
44%est.
$12,620 allowed
01

Realized gains, by lot

Sales on file, from applied statements. Term: held more than a year is long-term.

No sales on file for 2019.

02

Dividends and interest received

Payments on file, by holding. xutz can't tell qualified from ordinary dividends: the 1099-DIV governs.

Dividends and interest received in 2019
HoldingAccountPaymentsDividendsInterest
Marcus High-Yield SavingsMarcus12—$12,619.80
VTI Vanguard Total Stock MarketFidelity Brokerage ...44174$301.55—
Total16$301.55$12,619.80
03

Interest paid, and how much is deductible

Each loan's interest split by where its money went (the trace). Estimates at today's balances and rates; the lender's 1098 or statements govern.

Interest by loan, split by the trace
LoanInterest a yearTraced to investmentInvestmentHomePersonal
Home Mortgage$26,319 est.0%$0$26,319$0
Rental Mortgage$23,164 est.100%$23,164$0$0
Maple Family Trust line$5,800 est.100%$5,800$0$0
Auto Loan$537 est.0%$0$0$537

Investment interest $28,964 est., of which 44% is deductible this year ($12,620, limited by net investment income); $16,344 carries forward.

The deduction, line by line
LineAmountWhere it comes from
Investment interest (estimate)$28,964Estimate: a full year at today's balances and rates, split by the trace (principal repaid pro rata)
Carryforward from prior years$0Your figure on the Assumptions form
Interest received (NII)$12,620Recorded in xutz for 2019
Short-term gains (NII)$0Recorded in xutz for 2019; net, floored at zero
Elected qualified dividends / long-term gains (NII)$0Your figure on the Assumptions form
Dividends seen, treated as qualified (not NII)$302xutz can't tell qualified from non-qualified dividends
Net investment income used$12,620Sum of the NII lines above
Deduction allowed (estimate)$12,620Lesser of investment interest + carryforward and NII
Carryforward to next year (estimate)$16,344Investment interest + carryforward − deduction allowed
Estimated tax saved$5,780Deduction × 45.8% ordinary rate
Home-purchase and improvement interest (estimate)$26,319Estimate: a full year at today's balances and rates, split by the trace (principal repaid pro rata); $750,000 limit applies to debt after Dec 15, 2017
Personal or untraced interest (estimate)$537Not deductible

The trace: where the borrowed money went

Loan trace
LoanDateAmountPurposeIntoNotes
Home MortgageMay 15, 2021$1,000,000Home purchasePrimary ResidencePurchase of the home
Auto LoanFeb 10, 2023$30,000PersonalModel YCar purchase
Rental MortgageMar 4, 2024$220,000InvestmentFidelity Brokerage ...4417Wire to brokerage, invested in index funds
Rental MortgageJun 10, 2024$140,000InvestmentFidelity Brokerage ...4417Second draw, invested
04

Basis-quality notes

What to check before relying on the figures above

  • 1% of the market book (by value) has no cost basis on file, so later sales from it can't be estimated.
  • Holdings worth $183,957 have no buy date, so a sale's term (short or long) can't be told until their lots are on file.

What’s estimated

  • Interest by loan: a full year at today's balances and rates, split by the trace (principal repaid pro rata).
  • The deduction and tax saved: from the assumptions on the Account page.
  • Dividends are all treated as qualified; xutz can't tell qualified from ordinary (the 1099-DIV governs).

What’s missing

  • No sales are on file for 2019. Sales come from applied statements; upload the year's statements if there were any.