• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Proceeds of Sale of Property

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

Status
Not open for further replies.
W

welman26

Junior Member
What is the name of your state?Missouri
I was quit claim deeded a house in Nebraska from my mother about 5 years ago. I will be closing the sale of the house in mid January for about 70K. I am now wondering what to do with the assets. I have my main residence in Missouri and have a mortgage against that property for about 75K. The payment on my main residence is now about $775, of which $202 is escrow and 60 is PMI. I figure the value of my residence conservatively as about $80K.

Since I signed the mortgage on my home, I have become permanently disabled through Social Security and have income of only $1279 per month. My question is this: Do I apply the proceeds of the house sale in Nebraska to the residence in Missouri – thus reducing the amount of loan and payment? It seems logical but will I need to hold some dollars back to cover the taxes on the sale of the house or will I be exempt from the tax by reinvesting the money back into real estate? I also will be able to claim that I have lived in the sold Nebraska property within the last five years which I believe entitles me to be exempt from the tax.

I also want to avoid as many closing costs as I can for the REFI so is it best to use my current lender who I am satisfied with or get a new lender who has claims of spectacular savings on rates, costs etc.?
 


H

HomeGuru

Senior Member
welman26 said:
What is the name of your state?Missouri
I was quit claim deeded a house in Nebraska from my mother about 5 years ago. I will be closing the sale of the house in mid January for about 70K. I am now wondering what to do with the assets. I have my main residence in Missouri and have a mortgage against that property for about 75K. The payment on my main residence is now about $775, of which $202 is escrow and 60 is PMI. I figure the value of my residence conservatively as about $80K.

Since I signed the mortgage on my home, I have become permanently disabled through Social Security and have income of only $1279 per month. My question is this: Do I apply the proceeds of the house sale in Nebraska to the residence in Missouri – thus reducing the amount of loan and payment? It seems logical but will I need to hold some dollars back to cover the taxes on the sale of the house or will I be exempt from the tax by reinvesting the money back into real estate? I also will be able to claim that I have lived in the sold Nebraska property within the last five years which I believe entitles me to be exempt from the tax.

I also want to avoid as many closing costs as I can for the REFI so is it best to use my current lender who I am satisfied with or get a new lender who has claims of spectacular savings on rates, costs etc.?
Click to expand...
**A: talk to a real estate CPA/financial planner.
 
W

welman26

Junior Member
HomeGuru said:
**A: talk to a real estate CPA/financial planner.
Click to expand...
maybe i am mistaken but i thought that i was asking a forum which "included" those type of people. I was not aware that i was appealing to a panel of folks just as confused as i was. obviously i am trying to get some type of steerage such as "talk to your mortgage holder and see what they say or something like that. while your quick response was very flattering, it was hardly enlightening.
 
H

HomeGuru

Senior Member
welman26 said:
maybe i am mistaken but i thought that i was asking a forum which "included" those type of people. I was not aware that i was appealing to a panel of folks just as confused as i was. obviously i am trying to get some type of steerage such as "talk to your mortgage holder and see what they say or something like that. while your quick response was very flattering, it was hardly enlightening.
Click to expand...
**A: look, even if we had a real estate CPA/financial planner here as an advisor, your questions still would not have been responded to. Why, because we do not know your complete circumstances such as tax consequences in both states, your gross taxable income, IRS tax exemptions, deferrment/avoidance.......
 
Last edited by a moderator:
P

PghREA

Senior Member
Welman - I do have a CPA/financial planner background and the first answer is correct. No one can give you a general answer that would be in your best interest without knowing absolutely all the facts. You do need to consult with a CPA in your area that can have access to your financial and tax records.
 
Status
Not open for further replies.

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top