Almost everyone is affected by something happening within the economy today.
Housing prices have taken a dive. Staples such as food and gas are significantly more expensive and still rising. Jobs are being cut throughout many sectors such as construction, education, retail, restaurant, manufacturing, etc. So, the first thing we find ourselves doing is looking to see what we can do without.
I’ve been receiving a lot of calls and emails regarding the sale of second or vacation homes. Once a nice luxury and place to retreat, they are more and more becoming a financial strain, or at least an unnecessary part of life for many.
When selling a vacation or second home, you can’t enjoy the personal exclusion given to primary residences, nor can you qualify for a 1031 exchange available for investment property. Thus, saving on taxes becomes an even more important issue.
If you need to maximize your income, a Self Directed Installment Sale could be an excellent choice. It will basically allow you to receive a steady income stream over the number of years you choose. It also allows for the capital gains tax to be paid back over many years, and compounds the amount of return using the tax amount that would have been paid upfront to earn interest for you going forward.
So, by selling your vacation home and deferring taxes, you have immediate relief from the ongoing expenses of a second property, and additional monthly income to cover the rising costs of life.
Paula Straub
www.savegainstax.com
savegainstax@gmail.com
760-917-0858
Fill out a Confidential Qualification Questionnaire and see if you qualify to save capital gains tax. Go to
http://www.savegainstax.com/qq.html
Listen to my weekly radio show “Simply Wealth” at www.webtalkradio.net
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