Home sold; where to invest gain while waiting to buy
My son sold his home and relocated to a new state/city and is renting—how/where is the best place to invest the proceeds of that sell to keep it safe to reinvest into a new home eventually?
Terry Says
I assume you know that the “gain” is NOT taxable if it was his primary residence, and he files a single return, and the amount of the gain was under $250,000. ($500 on a joint return).
The ONLY place to keep it safe is to put it in a money market deposit account. See my most recent article “chicken money update” for ways to get he best rates – but you won’t get much money if you want to keep this liquid and available for the next purchase. The one consolation is that money market rates are finally starting to rise!
