Just sold my house. I will make quite a bit of money on the sale. How do I protect myself tax wise for 2009?
Just sold my house. I serve in the military and will be traveling to Germany. I will not have to buy a new home since the Uncle Sam will provide my housing for the next few years. I need guidance on how to protect/invest/tax help on what to do with over 100,000 I will make. I was smart to get a 15 year mortgage and make extra payments each year.
Renting & Real Estate - 5 Answers
Random Answers, Critics, Comments, Opinions :
1 :
Buy gold and keep some in euros. Buy real estate in the USA, since it is majorly down. Get a 15 year mortgage and make extra payments on it. Rent the house out. Use the rent money for the mortgage. Good luck and thank you for your service!
2 :
You are going to be getting your 2008 taxes done shortly, so ask your accountant at that time. You don't want our advice, as we are not professionals and could lead you down the wrong road majorly. Speak to whomever handles your benefits in the military also. There should be some type of program in place for our military personnel in this situation, as there are many of you whom have had to face this situation.
3 :
If it is sold, but hasn't closed you could amend the contract to reflect a 1031 exchange. You will have to purchase real property at a price equal to or more than $100,000.00. However, you need to move fast as you have to identify the property to be purchased before you close on the sale of your home. Then you have (I think) 45 days to close on the purchase. A 1031 exchange does not avoid taxes, it just defers them. realtor.sailor
4 :
You should have been thinking about this before you put the sale together. Consult with your accountant IMMEDIATELY for guidance.
5 :
amazing that the other 4 posts are WRONG. Actually not that amazing . . . If you have lived in the home for 2 of the past 5 years, the first 250,000 profit (single) or 500,000 (married) is tax free. It's your money and you DO NOT HAVE TO DO ANYTHING TO PROTECT IT FROM TAXES. Since you made "only" 100,000, you are ok. You don't have to buy another house or anything. I would talk with a tax accountant on the forms needed for this years taxes. As for where to put the money. Today, I would put it in a CD or money market account.
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