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Old 06-12-2018, 04:01 PM
Pamela Sherwood Pamela Sherwood is offline
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The shelter from capital gains for your primary residence is $250K for one person, $500K for a couple. You can take advantage of the tax shelter once every 5 years, provided its different residences - you can't accumulate more tax shelter by living in one house for 20 years.

The basis for calculating how much is "capital gain" is the excess value over what you paid, plus certain capital improvements (not maintenance). The federal rate is in the 25% range for long term capital gains, and states typically tack something on top.

The tax shelter for a dwelling not your primary residence is quite complex, and generally relates to rental properties, which can be sold without paying capital gains - as long as you reinvest in a "like for like" property.
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Old 06-13-2018, 08:32 AM
Tom Fuhrman Tom Fuhrman is offline
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One option to consider Mark is to sell the property on contract with a lease back on it and you remain there for X number of years while paying rent to the purchaser of the property and the purchaser gives you monthly payment towards the purchase of the property. That way you get a gradual income off the property and that can be invested elsewhere and I think you can get the right off of the rent payment . Check with some good accountants and see if they can walk you through this. There are also real estate trades groups that most are not aware of that allow you to trade properties and is advantageous for tax purposes. Find a good real estate attorney that possibly may be able to link you up with a group such as I mention.
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Old 06-13-2018, 08:35 AM
Tom Fuhrman Tom Fuhrman is offline
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Pete is dead on about the aging coming at you fast. If you're putting a lot of things off till retirement, I suggest you do them now. This is the voice of experience. Don't put off fun you can have today for possible fun you may or may not have later. Circumstances change that you have no control over and can throw a monkey wrench into your plans.
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Old 06-13-2018, 06:09 PM
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Sky Campbell Sky Campbell is offline
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I made the choice a couple of years ago to work part time and live life full time. That is tongue and cheek I work hard but try to play equally as hard. I don't have the desire to be wealthy. The property is paid for and long term investments are in place. I just got back from the lower keys on an epic fishing trip with my 15 year old son. I had to choose between a good money making opportunity or a fishing trip. I had some reservations but I'm back now and another job I bid the client was waffling on sent me a deposit. I think eventually when you find your path everything just falls in place. I understand struggles and know they will always be around the corner but with only one chance on this planet I want to make it the best I can.

I do have my retirement wrapped up in real estate. You guys aren't giving me warm fuzzy feelings on that end but knowledge is power. I really appreciate the insight from those that did the same. For now the rental market in a college town seem to be stable bet. Still I worry that the payout when I get out won't be what I thought. I lived by the idea that land is a sound investment " the only thing they can't make more of". I now understand the idea of owning land isn't what it seems. We have some of the highest property taxes per income in the state. It's more like renting land then owning it. Maybe I should start a church.
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Old 06-13-2018, 07:52 PM
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Pete VanderLaan Pete VanderLaan is offline
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I have a "peer" back in New Mexico and they put all their money in land deals. Bill got cancer and indeed died leaving his spouse a bunch of land parcels which would not move in the new deal, That left my peer with a cash poor crisis and no good solutions.
My financial adviser at Morgan Stanley insists I have a bunch of options. and part of that is liquidity. Land does not give that. It does leave you with property taxes.

I spent my day mowing fields with J. Deere #2 while cutting 150 K Bd feet of timber. It ain't fishing but it was satisfying. I'm indeed tired but the Irish at the end of the day helps a lot. I'll do another ten acres tomorrow and make glass by the weekend. Summer is for farming. Winter? Woodstoves.
Where are we going and why am I in this basket?
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