The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies

URL:  https://boards.fool.com/basic-home-selling-question-18931685.aspx

Subject:  Basic home-selling question Date:  4/20/2003  11:13 PM
Author:  ClabberGirl Number:  65120 of 132493

My brother and his wife just sold their house. I don't know all the terminology, and I will probably have him come and post here if this is the right place to get answers.

They are kind of unsure about what to do now. They have talked about buying a home, but they are also considering renting for awhile, because they don't know where they want to settle yet. My brother's job might change, they might move across town, they might move to a different state. It's up in the air.

Again, I don't know the terminology, but they made about 27% on selling the house. And I don't know what that will come to after closing costs, but still, they stand to increase their wealth.

None of us really know how it works, but we think that if you make money on your house, and you don't re-invest it in equity, you get taxed on that amount as income. Is this right? I'm probably simplifying it a lot.

But, say they decided to rent, instead of buy, and used the money they make on the sale to pay off credit card debt, what would that do to them?

Thanks for any initial info and any resources you can point us to.


Copyright 1996-2021 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us