Financial question for my daughter.

[Charger Dana]

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....

That’s our special little perk in Canada. Our US friends get a tax deduction (with limits) on interest paid though, and we don’t.

 

[Fran Blacker]

This page might help. https://www.google.com/search?q=if+...gB1AGSAQMwLjKYAQCgAQHIAQjAAQE&sclient=gws-wiz

 

[Runner 68]

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?

View attachment 1211052

Your call Dad. Does your daughter know you're asking advice from this bunch of outlaws?
My 2 cents, liquidate all assets and get the hell out of Colorado.

This state has been hammered into the ground for years by transplants craving the "Rocky Mountain Lifestyle". Reap what you sow. Not to mention the entirely liberal government that has been elected lately. Run away.

Thinking Portugal these days personally.

 

[joe smith]

Your call Dad. Does your daughter know you're asking advice from this bunch of outlaws?
My 2 cents, liquidate all assets and get the hell out of Colorado.

This state has been hammered into the ground for years by transplants craving the "Rocky Mountain Lifestyle". Reap what you sow. Not to mention the entirely liberal government that has been elected lately. Run away.

Thinking Portugal these days personally.

Poland, a country that seems to care about its citizens...
I think the bubble is about to burst on house prices... I would put the money somewhere and wait until houses decline... 15 years since the last collapse....
Just my opinion..

 

[Fran Blacker]

If they raise interest rates, prices will come down. Borrowed $36k in 1982/83 @ 10% and that was 3% lower than most. Paid it off in 17 years, rate never went low enough to make it worth while to refinance.

 

[gkent]

Go to Vegas and slap it all on red ... or black !!!

 

[gkent]

I'd go to the most depressed cities in America and buy abandoned properties for the taxes owing. Even better if the houses on them have already been ripped down by the city. Make sure to keep enough in the kitty to pay the taxes for the next ten years and hope to hell things turn around. Right now there is nowhere to make good money unless you have ten million or more to play with. These days only the rich are making money, everyone else is either losing or just holding their own.

 

[Ron H]

The usual idea of course, is making some interest or earnings on the cash and if the situation is on hold on what to do… buying a house or property…or just up in the air for an unknown time keeping the cash liquid, I might toss it in the bank until can figure it out. Yeah, sucks on interest; but da cash is there, all of it, when you want it quickly. Buying a house to rent or flip could cause some money issues if the place needs fixing up or other problems undetected…and if relocating, another possible ball & chain. As suggested, if it were me, I’d consult with an expert assuming the sum is large, as there may be other options to keep the cash liquid, avoid taxes, make a decent earning, etc. Appears your daughter has a lot to think about with her future and may need some or all of the money. If she’s not set with a retirement fund another thing to ponder on with some of the money.

 

[YY1]

Explain the pros and cons of putting that money back into real estate.

IE don't do it and get heavily taxed, or do it and make a plan to have rental property income if she want's to roam about.

Do your research, and use this opportunity to teach smart financial decisions.

 

[Ron H]

As I followed, she hasn’t (or hadn’t) made up her mind on where to live (possible relocation). The time frame is/was questionable on when she would make a decision, assuming she may want to use the cash to buy a place to live and how quickly she might need this money. This narrows options where to put this cash.

 

[Crackedback]

Has she lived in the house for 2 of the last 5 years as her primary residence? If so, she has an exemption available. As long as she hasn't sold another house in the last 2 years, using that exemption, she can claim the first 250K of capital gains tax free. 500K in total for the pair of spouses (split 50/50 for 250K).

People are mixing the old rollover rule that went away many years ago that required reinvesting in a new house at a higher value to avoid cap gains.

@SteveSS

 

[super-bee_ski]

In my opinion, not knowing all details, she should have Kept the house, bought out her EX
If at all possible
Because homes have risen in price...

Hope all is wel....
PS: Want another RED X ??

 

[67charger383]

Scared to get married in the future.

Still can’t mentally compute how splitting up would allow her to steal half your **** that you paid for…

(unrelated to your daughter)