First thing to consider is that if you don’t reinvest the gain into a similar

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Jun 23, 2022
6:57:00am

NOCAL_YFAN All-American

asset (like buying another home), you could owe capital gains tax on it. Have you bought another home?

This message has been modified

Originally posted on Jun 23, 2022 at 6:57:00am

Message modified by NOCAL_YFAN on Jun 23, 2022 at 7:44:29am

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NOCAL_YFAN

Bio page: NOCAL_YFAN
Joined: Jul 11, 2001
Last login: May 23, 2024
Total posts: 18,437 (10 FO)

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Messages

Author

Time

What should I do with the money I made from selling my house?

Geldir

6/23/22 6:52am

First thing to consider is that if you don’t reinvest the gain into a similar

NOCAL_YFAN

6/23/22 6:57am

If it was his primary residence and he owned it more than 2 years, he won’t owe

gww687

6/23/22 6:58am

Right

NOCAL_YFAN

6/23/22 6:59am

And you can’t 1031 exchange the gain from your house anyway, even if a part is taxable (not likely).

RdF3

6/23/22 7:01am

1031 works if you are buying an equal or higher value home.

Shihan

6/23/22 8:43am

This was clearly his personal home he sold so no, a 1031 does not work.

RdF3

6/23/22 8:54am

True, I failed to check before I sent. I meant to say, "Also, a 1031 only works

Shihan

6/23/22 9:06am

unless the gain was over $500k, which I assume was not. Anything over $500k

volleyjiver

6/23/22 7:12am

You also have to factor in expenses associated with the house right?

kotacoug

6/23/22 7:28am

Over $500k you also get additional Obamacare tax of 3.8%. Thanks, Obama!

Iman23

6/23/22 7:35am

I did assume, given the other details, that gain was less than $500k

gww687

6/23/22 8:24am

🤦🏻‍♂️ This is incorrect and not good advice.

RdF3

6/23/22 6:58am

This is true for involuntary conversion (e.g. fire, flood, etc.). Not a sale.

Narfin'Coug

6/23/22 7:53am

Age?

kccougar

6/23/22 6:57am

I would buy a house

TCuz

6/23/22 6:58am

Gme

Deleted

6/23/22 7:00am

Do you have a 401(k) match at work? If so, I would make sure you’re

allaboutthegainz

6/23/22 7:02am

Of course, this is a longer term strategy.

allaboutthegainz

6/23/22 7:04am

My work has 2 options 6% match dollar for dollar.

Zoobieman

6/23/22 7:30am

If you can afford the 6%, keep doing the 6%. Sure it’s less return

allaboutthegainz

6/23/22 7:41am

Some new kicks, and a benz ....

TheHop

6/23/22 7:02am

Epic trip to Disneyland

BIG XII Coug

6/23/22 7:03am

Do you have another house to live in?

WJCougar

6/23/22 7:08am

Buy more houses

Backcountry

6/23/22 7:11am

Congrats! Recommend keeping an emergency fund and then investing the rest. I

pilot17

6/23/22 7:17am

Avoid mutual funds, invest in ETFs or low-cost index funds

JOPE

6/23/22 7:50am

I ment to say index fund. It's early and I'm tired. Edited.

Geldir

6/23/22 8:11am

The only person in the world that still recommends mutual funds is Dave Ramsey

JOPE

6/23/22 10:07am

Forget bonds. Put it into an S&P 500 Index Fund.

Sooner Cougar

6/23/22 9:03am

If you’re living paycheck to paycheck set up a 6 month emergency fund that will

kotacoug

6/23/22 9:04am

As long as you are investing for the long term, what you are planning sounds

VenturaCoug

6/23/22 9:05am

The problem is there isn't a long term. I would maybe look at TIC investments.

TJD

6/23/22 9:55am

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