We are selling our house and moving to California...where we can not buy a home. We are going to make around $120,000 on the sale. I would like to take $30,000 to pay off my car and little bit of credit card debt. Do I have to reivenst in another property? (We were thinking about buying land perhaps somewhere) or is there something else I could do with it that I don't get taxed to death and perhaps get a bigger return to pay off debt.
Thanks in advance!
2006-09-12 07:31:09 · 9 answers · asked by MaryJaneD 5 in Business & Finance ➔ Investing
Save some money to pay the capitol gains taxes. Consult with a CPA before you get into tax trouble. Yes, you do have to reinvest in property to avoid taxes. I'm not sure of the time frame, I think it's six months.
2006-09-12 07:36:56 · answer #1 · answered by Anonymous · 0⤊ 0⤋
I had a friend in a similar situation - but no ex - her job required her to relocate to another city and she had her house on the market for a couple of years - paid rent in the city she moved to while she continued to make the house payment - tried renting it but couldn't rent it for the amount of the house payment and ended up having to do some repairs after the renters moved (carpets, appliances, landscaping) - was pulling money from her 401k every month but refused to lower the asking price - she also didn't want to ruin her credit - the house (payments & repairs & taxes & fees) cost her almost $90,000 after she had moved before she finally lowered the price by $50,000 & sold it within a month - in the meantime she depleted her savings, did serious damage to her 401k, & had to pinch pennies just to buy groceries - she saved her credit but ruined her financial health & the stress took a toll on her physical health as well - the point is she should have dropped the price & took the loss in the beginning & you should probably do the same - I can't speak to the situation with the ex but if you owe more than the house is worth in today's market it doesn't sound like there's any equity to argue about so what would she get if she sued you? Talk to the divorce lawyer about it and develop an exit strategy but get out from under it as quickly as possible
2016-03-26 22:10:05 · answer #2 · answered by Anonymous · 0⤊ 0⤋
According to the link below "What is a 1031 Exchange?", it appears a 1031 exchange may not be right for you, but you should still examine that option.
If you were looking to shift the assets to a different kind of investment to avoid taxes, you might max out your 401k and live off the gains while you do that.
2006-09-12 08:41:41 · answer #3 · answered by kcincon 3 · 1⤊ 0⤋
First $500,000 of the gain on the sale of you home of 2 years or more is tax free.
Pay off ALL of your debts and begin to save as much as you can.
2006-09-12 07:44:22 · answer #4 · answered by Joe the Expert 2 · 1⤊ 0⤋
I suggest you to sell your car and buy a cheaper one with your own money.
I suggest you to pay your entire Credit Card Debt.
I suggest you to buy a house in California. (Paying rent is the same as giving away your money)
2006-09-12 10:43:39 · answer #5 · answered by Anonymous · 0⤊ 2⤋
Invest in a rundown house and repair it to triple your return after selling it.
2006-09-12 07:46:49 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Please Take the time to talk to a lawyer. Save all that you can. But i know of a great low investment. That in return make big bucks$$ Check out my web site..
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2006-09-12 09:30:27 · answer #7 · answered by Andrew C 1 · 0⤊ 1⤋
Very easy 1031k just ask an accountant about it they will explain but it keeps you safe with taxes. 1031K I'm telling you this is your answer.
2006-09-12 07:38:47 · answer #8 · answered by Barry G 5 · 0⤊ 0⤋
Here's a possibility to invest:
http://www.inside-alpha.com
Let's make money!
Good luck
Marc
2006-09-12 13:59:19 · answer #9 · answered by Marc H. Mayor 2 · 0⤊ 1⤋