Retirement Planning/home sale

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Question
Hi Richard,
I am 66 years old and single.  I currently have 2 homes, 1 paid for and the primary home I owe on.  I am considering selling the home that is paid for at the current rates I would only be able to sell it for $100,000. that is under what I bought it for.  I need to how if this sale will hurt me on taxes and social security, I have no other income than S.S and small savings.  Thank you for your help and advise.

Answer
The Financial Quarterback
The Financial Quarterb  
Thanks for your question. If you sell your primary residence there is no federal taxes to be paid on the sale assuming you are single and your profit is under $250,000. However, on the sale of the investment property there would be capital gains tax that would be owed on any profit over and above your basis in the investment property. Additionally, you must recapture all depreciation taken up to a maximum rate of 25%.

Please note that this is only a general answer based on your question. I would recommend that you review this with your tax preparer (CPA, EA. etc. ) and with your financial advisor preferably a Certified Financial Planner who works with retirement income and distribution planning.

Hope this helps.  

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Richard E. Reyes, CFP

Expertise

I can provide answers to questions relating to retirement especially relating to; income distribution, tax efficiency, long-term care insurance, life insurance, estate planning, asset protection, variable and fixed annuities, alternative investments and prudent portfolio design.

Experience

Through the years Richard has built a reputation as one of Central Florida's expert on retirement income distribution by providing sound, unbiased wealth coaching. We believe that Financial Planning is the problem and Wealth Coaching is the solution. The Wealth Coaching process gives you Peace of Mind, so you can stop worrying about your future. It helps you find happiness as it guides you in the TRUTH of investing, by teaching you how to make wise choices as you journey through your life’s stages. It is all about your relationships and what you value, not your net worth.

Publications
Seminole Success Magazine “Retirement Planning” Seminole Success Magazine “Small Business Snapshot” The Orlando Sentinel – Ask the Expert Financial Section (Various) Greater Orlando Broker Agent Magazine “The New It” Senior Market Advisor “Random Reader, Random Questions”

Education/Credentials
B.S. University of Florida, Gainesville, FL
CFP Certificate, University of Central Florida, Orlando, FL

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