Financial question for my daughter.

SteveSS

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My daughter's divorce is final now. I know it sounds like a Tammy Wynette song. It wasn't her fault or her idea so don't jump to conclusions. I would have probably.

Splitting the proceeds from their house in Denver has resulted in a bunch of profit. That causes two problems. Prices in Denver continue to go up so even though she made out good it's going to cost more for the same house a year from now. Secondly, with our illustrious president spending money like a drunken sailor, inflation has kicked into high gear. Just putting that money in the bank is going to be a bad idea.

What to do, what to do?

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slimt

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Is your daughter in a position to buy a house of lower value outright? Then flip it? I guess another is if she banks it. Is there a gain tax ?
 

w.Hudson

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I have always invested in old cars, fast women and slow horses.

The rest of my money I just squandered.
 

Michael_

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Just putting that money in the bank is going to be a bad idea.

That's probably the dumbest thing one could do these days.

If it was me i would buy a house (not an appartment) if possible.

Whatever she does i would invest in something that holds or gains in value! :)
 

Slap Stick

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IIRC she has a time limit in which to invest the money into another home without paying tax on it.
I have never stayed at a Holiday Inn Express.
 

WileERobby

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Re-invest in in real estate for whatever the amount is. ( Is that photo your daughter ? She's beautiful, good thing she doesn't take after you ! )
 

66 Sat

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Definitely re-invest in the property market. Best of luck to her, I'm sure her future is bright.
On another note I'm not sure I would be posting a photo of my daughter if she was recently divorced and came into a lot of money.
Non-members can see these posts too, lots of fraudsters and crooks out there.
 

dadsbee

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I was just going to say, do you guys not have the capital gain exemption on your principal residence?? I can buy a house, live in it for a year and sell it for 10 x the value and pay no tax...
 

Ron H

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Depending on how much cash is involved, I’d pay a few hundred to talk with a financial expert or CPA on all options, pro's and con's.
 

5.7 hemi

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If they owned the house for more than 2 years, there is no tax to pay on the profit as long as she reinvests into another real estate.
 

turbine68rt

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Unless something is different regarding a divorce, I'll have to agree with dadsbee. The last property I sold I held out my hand for the check (nice profit included) and used that towards the down payment on the current house. Paid zero taxes on the profit. Stipulation was that it has to be your primary residence. Secondary property, different story altogether.
 

dadsbee

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We can sell our principal residence, not pay tax on capital gains, move into a trailer and buy a Daytona.. still no tax.. other than tax collection on the Daytona value that is....
 

R413

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Was it their primary residence for over 2 years? If so then no taxes and no time limit to buy another house. If it was a rental then one year to buy another or pay taxes on the gain.

Why all the responses from out of the country, the laws are quite different. LOL

thanks for the red X from Canada, care to elaborate on your problem here?
 
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bm02tj

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In Canada we can not use interest paid on our homes for tax reduction
I believe our friends to the south can so makes sense for the different rules
 

SteveSS

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I talked to her about buying another house but she's just not ready yet. I think she wants to be free to move around if need be.
 

Jesse6869

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Like everyone else said buy a house market is not going to stop. To many people buying, i just bought another house just because i would make more on the house then in the bank.
 

Mike67

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First question, are there children involved? Secondly property is a great investment especially with the low interest rates.
The caveat to that is that home values are so over inflated right now I would be afraid to purchase a stick built home, I have a feeling the housing market is going to burst under the current admin like it did in the mid 80s.
If I were single and had some significant cash, liked the outdoors, I would look at buying land and a tiny home. They are building some spectacularly nice homes from 400-600sqft and technically mobile.
But I would do as Ron suggest and meet with a financial advisor that is a fiduciary and comes with recomendations.
 
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