I AM FIFTHY-NINE AND PLANNING ON TAKING THE MONEY NEXT YEAR TO PURCHASE A HOME IN ANOTHER STATE. THIS WILL BE MY FIRST HOME. I WANT TO USE SOME FOR THE HOME AND INVEST WHAT IS LEFT OF IT.
2007-10-06 10:29:29 · 3 answers · asked by buffy 1 in Business & Finance ➔ Taxes ➔ United States
You'll have to pay the income tax when you take it out. But since you're 59-1/2, there won't be any penalty for early withdrawal.
2007-10-06 12:03:17 · answer #1 · answered by Judy 7 · 2⤊ 0⤋
No it is your primary residence so the profit is not liable for tax. May I say this is a really stupid thing to do you will lose some of you capital on rent which is totally dead money and a place on the property market. If you think this through you will realise that property is a sound investment if you really want to move then rent the house out and live off the income not your capital
2016-04-07 07:59:54 · answer #2 · answered by Anonymous · 0⤊ 0⤋
You will pay taxes at normal rates. There will be no early withdrawal penalty.
2007-10-06 10:42:53 · answer #3 · answered by Anonymous · 1⤊ 0⤋