Selling condo
Hi Terry,
I am single and will be turning 65 in September. I am in the processing of selling my condo. Looking to sell it for about $1MM. After all the deductions, ( homeowner deduction of $250,000, original cost of condo $385,000 and about $150,000 in improvements = $785,000) I will hopefully walk away with a taxable net of $215,000. I will likely buy a new condo for about $350,000, so I will have to pay taxes on the $215,000, correct? What is the best way to avoid capital gains tax of 30% on the $215,000? Also what is the best investment for the difference ( $1, 000,000. – $350,000 =$-350,000.00 = $650,000.)? I plan to take my SS at 67. Thoughts?
Thank you so much,
Terry Says
There really is NO way to avoid the capital gains tax on the excess gain. Sorry to make that so clear. But at least that’s the lowest tax rate you’ll have to pay!
(If you have some losing stocks held outside a retirement account, you can sell and use up to $3,000 of losses to offset part of your gain.)
Put the excess money in Treasury Bills – Read this: https://www.terrysavage.com/t-bills-beat-cds-2/
And get this done before you apply for Medicare, because that gain will be counted in your income and will increase your Medicare Part B and D premiums. So I’m hoping that you’re waiting to take Medicare until age 67 as well.
