I'm recovering. I had quite the shock the other day. Because of the litigation I really thought that I had not choice but to liquidate the IRA inheritance I got. I don't care what the lawyer says about having informed me fully. From my point of view it was ambiguous language, I called and asked and every time he said not to worry about it, it's covered by the estate. I think the tax preparer finally explained it to him so he would get it and he passed it on to me. Just covering his ass.
We have to pay a third of what we got. We have it in the bank so it's not that bad, but this puts our house search on hold for a good few months. I've had a good five days or so to let it sink in and re-crunch the numbers to see how we can still realize our plans. My chest has been hurting over this. It's more than what we planned on using to purchase a house and puts us into debt to cover the repairs to this house which I just sent the contract in a few days before the shock came down.
At this point I really want to avoid the failure to pay penalty because the taxpreparer on this end did not file an extension. It may have been too late to do so. Hubbie dropped the taxes off instead of us getting an appointment and sitting down to explain things in person. Our taxprep didn't return our calls for weeks at a time as well which didn't help things.
Now I have to make phone calls every few days to ride people to get things done and cross my fingers about the penalty. I hope all the confusion and all the litigation is excuse enough for how things played out.
I don't want to pay ten thousand on top of the tax bill for this crap. It's doable but I really don't want to do it.
The financial plan that I'm leaning toward is my second option. We've already paid off this house. The next inheritance payment from the Invest Acc of my parents will be put toward getting an investment property. We'll keep the one third needed for fiscal year 2014 and that still gives us enough to purchase and pay completely an investment prop. I'm thinking I may put half down and finance the remaining 30-40K. That way I have more for the house we're going to get.
We'll still need to finance about 30-40K of our future primary residence, but with two or three rental units in one building and a house for rent, it will bring in enough income to get us approved even with only one job in the family. Plus, the equity in this home can serve as a guarantee. There's more than enough equity that if we need to sell this place we can pay off the mort on the primary residence and put another chunk down on a new investment property.
The goal is to have a primary home and two income properties one way or another.
My chest doesn't hurt as much.
It did get quite the clunk today when I thought about capital gains. I could have rolled the 700K into an investment account and cleared 20-30K in interest income every year. No job necessary but still raking it in. Now that I know it was an option, I'm a little pissed I was misled. But rolling it would not have permitted us to be debt free and acquire income property this quickly.
I have a decent amount of money in a mutual fund and an IRA to roll over earnings for a tax shelter.
Hubbie is funny. Relax, we're still rich, he said.
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