Tag Archives: inheritance

Best Use of Inheritance?

Posted on September 6, 2010 by admin| 4 Comments

My share of an inheritance from my mom will be $135,000. Her financial advisor says that if paid to me in a lump sum, about $50-55,000 will be taxable as ordinary income.

I took a 2nd mortgage last year on my house to buy a vacation home that needs some work in order to be usable for myself and as a seasonal rental. I owe $95,000 on the 6.5% loan; repairs and upgrades will run about $35,000. Getting this house in order is a top priority. I hope to retire next year, and planned to sell the main house, using the profit to pay off the vacation house loan and pay cash for a retirement place. I would continue to own two houses.

Question: What is the best strategy to use this inheritance? Take the tax hit and pay off the vacation house loan and repairs? Keep the loan, pay for the repairs, invest the rest, and pay off the loan next year with the sale of the main house? Other, better ideas?

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Posted in Homes For Sale

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Can my father give me 25,000 for bills and down payment on a home free and clear? Or are there tax penalties?

Posted on August 26, 2010 by admin| 6 Comments

My dad is going to help me pay off my car and give me down payment money for new house totaling $25,000. I will repay half this amount a little at a time. He was going to give me a cashiers check and let me spend it but I’m afraid there will be tax implications. I live in New Mexico. I thought that maybe he could just write the check for the car and give me a smaller amount in cash or smaller gifts separately. What are the rules? Also I will eventually inherit money for the sale of his land that is getting paid monthly through escrow. Is there a way to avoid losing inheritance this way? He currently lives off this money. Thanks for the advice.

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Posted in Land For Sale

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We’ve been married 21 yrs. and live like roommates?

Posted on July 29, 2010 by admin| 10 Comments

My husband is basically a wonderful man. We married when my children from 1st marriage were 4 and 6. We also have 3 children together. (2 at home- youngest is 6)) After my mother died in ’99 i received a substantial inheritance and we bought our “dream” land (15 acres) and built a house. It has become a nightmare. Not enough time, energy or money to keep it up. (also, no one helps me) Anyway, 2 yrs. ago we decided to divorce and put the house up for sale. It has not sold. We are simply “waiting”. At least thats what I think, as we dont talk about it AT ALL. We get along fine, he’s a great story teller, he makes me laugh still, puts up with lots of my crap, but we’re just “pretending”, i feel, for the kids. We sleep in separate rooms and have our own lives, but as long as I am home and “play” the role, everything is “fine”. If I ask if we’re still getting divorced, his answer is usually something like, “May as well.” I have no idea what we’re doing. This could go on forever.

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Posted in Land For Sale

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mother in law?

Posted on June 14, 2010 by admin| 2 Comments

My father in law died last spring, my husband has 1 brother and 3 step sisters(from father). After Willy passed away, his land was suppose to be sold and HIS half of the sale was to go to the children. Well, Liz (mother in law) has spent nearly every red cent, on her new “I deserve everything” life, has a boyfriend already (each to his own) and hasn’t given anyone their inheritance. What is the best way to go about getting what is ours. I’m not asking for myself, I could care less, but my husband, our family, his brother and his family are very upset. The girls don’t have much to do with the boys, so I’m not really concerned about them although they deserve what’s coming to them as well. She is a very greedy, selfish person as well.

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Posted in Land For Sale

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Inheritance or Capital Gain?

Posted on June 1, 2010 by admin| 5 Comments

In 1986 my mother passed away suddenly with no individual will – only my parents’ joint will. This year my father sold all of her land (for $85k) in Louisiana (we live in MS) with the plan of paying the capital gains tax and giving the proceeds to all of us, his children (who would then pay taxes too being over $11k). According to Louisiana law (Napoleanic code?), since there was no will, the proceeds of the sale go to the children – all now in their 40s not the spouse. Each will get about $27k. My question is, in April of ’07, on my ’06 taxes, will this be counted as a tax-free (I think if under $2 million) inheritance or will I need to get a record of its appraised price in ’86 and pay capital gains tax on the proceeds using a cost basis on the price difference from ’86 to ’06?

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Posted in Land For Sale

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