do i have to pay taxes on it?...
say its $100K.......whats the best place to put it,,,for twenty years?
2006-10-01 07:09:39 · 7 answers · asked by bush deathgrip 2 in Business & Finance ➔ Investing
If you've lived in the home for [3 of the last 5 years, I think] you don't have to pay taxes on the first [$1,000,000] of gain. You may invest some or all if it. Check with you accountant on this. If you don't have one, call the IRS and ask.
There is no one best place to invest. Most investment professionals would suggest a balance portfolio of stocks and bonds. A good diversified mutual fund would be appropriate.
2006-10-01 07:20:04 · answer #1 · answered by SPLATT 7 · 1⤊ 0⤋
If the gain on the sale of your house, and I think it is, but check with a tax guy.
You can put $4,000 per year into a Traditional or Roth IRA. So if you put in $4,000 this year, then $4,000 next year, for you and your wife, that is $16,000 right there.
I do my Roth IRA at Scottrade because there are no fees, and I can invest in many different mutual funds, stocks or bonds. Many are no-load and no transaction fee funds. UMREX has been my best fund so far.
http://www.scottrade.com
If it was tax free money, I would recommend a Roth IRA because a Roth IRA has tax free gains. Tax free money making tax free gains is sweet! If you put it into a traditional IRA, you will end up paying taxes on it when you take it out.
You can purchase $30,000 per year of US I or EE Series Savings bonds for Tax Defered Gains. EEs are paying more right now, but if inflation takes off, I Series are inflation protected.
http://www.treasurydirect.gov
If you are in California, Vanguard California Muni Bond fund for tax free income. Reinvest the gains for 20 years, pays about 4.5% or so.
2006-10-01 15:20:22 · answer #2 · answered by Anonymous · 0⤊ 0⤋
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2006-10-01 21:19:48 · answer #3 · answered by stock_trade_expert 3 · 0⤊ 0⤋
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2006-10-01 14:27:47 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Depends the best place to look (if you live in the US) is www.irs.gov
the time you have lived in the house is the key factor.
2006-10-01 14:18:13 · answer #5 · answered by Anonymous · 1⤊ 0⤋
in the U.S. a single person can sell their homestead and pay no tax on 250,000.00 profit if married 500,000.00 hope this helps.
2006-10-01 14:20:32 · answer #6 · answered by professor 1 · 0⤊ 0⤋
capital gains is any profit over 250K per person or 500K for married couple. So you can do as you wish.
2006-10-01 14:18:34 · answer #7 · answered by Anonymous · 0⤊ 0⤋