Posted on 09/11/2006 5:46:01 AM PDT by Rb ver. 2.0
He wouldn't have to take much. Maybe a couple hundred grand. There's no way the market would drop THAT much.
Although if it were me I'd probably sell it.
Further proof that no one ever truly owns their home. They buy a home and then lease it from the government.
We need to change from this mindset to one of, after retirement (on a fixed income), property taxes stop on one's primary residence. Too many people work hard their entire lives, build up a neighborhood so that it is attractive, and then are forced out of that neighborhood by increasing property taxes. Let localities take their revenue through property taxes on those still working and on sales taxes.
I always enter those with the intent to sell them and keep the after-tax cash.
It's the free trip sweepstakes that I never enter. And with income tax on the win, the trip would be anything but free.
He really needs a good account and tax attorney now, before he makes any decisions.
Your idea just shifts the property tax burden to younger homeowners.
No cement pond?..........How gauche!......
What if he borrows enough against the equity to live there more than 5 years( or whatever the time limit is) and then sells? If he is over 55, can't he sell one property and keep the dough tax free?
..yeah that's the small print.....now if they gave the "winner" a tax free million that could generate income to pay the taxes...now we have a prize
Doogle
He'll be making a mistake if he "lives" in it for three weeks.........
In in '80s I won a truly hideous ruby and diamond necklace valued at $11,000. I was advised to run an ad in the paper ASAP offering it for sale as evidence of intent to sell. It took a few weeks to sell it and I didn't get anywhere near $11,000 for it, but I did sell it. I was taxed on the sale price, not on $11,000 because I had proof of intent to sell from the very beginning.
You are absolutely dead on the money! The loan would be a no brainer and he would enjoy it for two years, not 3 weeks, AND make a lot more money.
Same as winning the lotto, you put the ticket in the safe deposit box and get to work hiring competent people to advise you.
From what I've seen it's a pretty good market in that area and the house has a killer view which helps tremendously.
The guy is going to make money on this deal regardless of the taxes.
Be very, very careful!... We, here in Florida, passed a "Save Our Homes" act a few years back, to do exactly what you suggest. Now we have a situation where homes of identical value right next door to each other are way, way apart in property taxes! Say, mom and pop own a home that is now too big for them because their kids are all grown up, they pay a small property tax on the big house they own, but if they buy a new smaller home, their new taxes will be higher than the ones they now pay. The new owner of their home will have to pay huge taxes on mom and pop's old home because the new sale value is now the property tax value.......
..........capital gains taxes on the selling of the home.......
I don't think so. Once he pays the million plus in the lottery winnings, his tax basis will be the 3 million gift value, so no taxes will be due on the sale up to 3 million, above that, he'll pay ordinary income tax as he hasn't owned it long enough for cap gains treatment.
In West Virginia, it's all relative.........
You don't really win if you still have to pay for it. :)
IMO, the only true "win a home" contest would pay your taxes for you, unless the home is actually in an affordable price range. But, this is not.
...and does not address the fundamental problem: government's voracious appetite for tax dollars.
(No more Olmert! No more Kadima! No more Oslo! )
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