Andrew lost his first tooth this evening over dinner at Bob Evans. Nathan had "accidentally" kicked him in the face three weeks ago, leading to the tooth's premature departure. Once learning he could wiggle the tooth with his tongue, it was only a matter of time.
Now, he has to wait all the way till Tuesday to show off his tooth at school. (We expect Mrs. Stephen to be happy to have a quick way of telling the boys apart.) Tonight the infamous tooth fairy will visit the boys room to exchange the tooth for a shiny quarter. My mom told me the going rate in first grade is $5 per tooth. Once we did the quick math of 3 kids at $5 a tooth, we decided that we could save an entire month's house payment by leaving a quarter instead. Nathan was very interested to know when the tooth would be put back.......
3 comments:
Smart financial planning. The quarter will work just fine...they don't know about inflation!!
Nice photo and cute family story! The missing tooth would also help ME tell them apart. In the photos, I think they look identical.
Karen
It is smart financial planning..
His cost basis on the tooth for tax purposes is $5.00, at full appraised value. He received 25 cents on the transaction, which means that he has a $4.75 capital loss.
He can either take the loss on this year's tax return, or use it to offset any capital gains between now and year-end. If he had held the tooth for less than a year, he could have offset short-term capital gains, which are taxed at ordinary income rates.
Also, it's a good thing that he owned the tooth personally, and not in his IRA, because he cannot take a capital loss in a traditional IRA.
So good move, Andrew!
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