mh
Thinks s/he gets paid by the post
Ok this will be a bit verbose and rambling but bear with me hopefully it will reduce some intermediate questions you might have..
I have a friend who has what i'll a single "collectible" that they have been offered a little north of .5M for this item. The offer is real, the buyer somehow tracked them down and made the offer so it's not a "antiques roadshow" bogus value.
They may have one or two other valuable "collectibles" in addition to this, but they are probably not in this same range. I can only wildly guess, but let's say there may be 50 to 100k more in assets like this present. Those would likely take longer to sell.
He's had this bigger item for many years and the basis on it is microscopic enough such that, for the purposes of discussion, we're talking about a full .5M in gains from the sale. The sale will take place sometime this year probably.
Their income stream at the moment is pretty modest. SS and a small pension. I don't know the exact numbers at the moment, but they're single, late 80's in age and well within the 15% tax bracket.
They just got a reverse mortgage but i don't think it's actually begun payouts yet (just to throw weirdness into the mix for you all). There's no reason for this person to leave any money behind as inheritance.
This individual is still sharp as a tack but physically they are somewhat frail. This person could still travel, etc.. (which they would like to do) with some assistance (via a wheel chair for e.g.). so they would like to "utilize" this
money in the near term within reason. in a few years it's conceivable that
options for them spending their money like that will be gone.
So. At least naively, it seems that if they took the simple route and just made the sale. they would have to pay capitals gains of 15% and being a california resident, i would guess there will be a hit there also.
So.. if anyone has had a similar situation in their lives i would like to hear about anything you might have to say on the subject. They're going to talk to an accountant (and perhaps a lawyer) but this person doesn't have much of anyone looking out for their back except me at the moment.
An immediate question would be the tax issue. Would some kind of structured payment or other device make sense to spread out the tax burden over a few years ?
I'd love to hear your comments / suggestions / questions.
I have a friend who has what i'll a single "collectible" that they have been offered a little north of .5M for this item. The offer is real, the buyer somehow tracked them down and made the offer so it's not a "antiques roadshow" bogus value.
They may have one or two other valuable "collectibles" in addition to this, but they are probably not in this same range. I can only wildly guess, but let's say there may be 50 to 100k more in assets like this present. Those would likely take longer to sell.
He's had this bigger item for many years and the basis on it is microscopic enough such that, for the purposes of discussion, we're talking about a full .5M in gains from the sale. The sale will take place sometime this year probably.
Their income stream at the moment is pretty modest. SS and a small pension. I don't know the exact numbers at the moment, but they're single, late 80's in age and well within the 15% tax bracket.
They just got a reverse mortgage but i don't think it's actually begun payouts yet (just to throw weirdness into the mix for you all). There's no reason for this person to leave any money behind as inheritance.
This individual is still sharp as a tack but physically they are somewhat frail. This person could still travel, etc.. (which they would like to do) with some assistance (via a wheel chair for e.g.). so they would like to "utilize" this
money in the near term within reason. in a few years it's conceivable that
options for them spending their money like that will be gone.
So. At least naively, it seems that if they took the simple route and just made the sale. they would have to pay capitals gains of 15% and being a california resident, i would guess there will be a hit there also.
So.. if anyone has had a similar situation in their lives i would like to hear about anything you might have to say on the subject. They're going to talk to an accountant (and perhaps a lawyer) but this person doesn't have much of anyone looking out for their back except me at the moment.
An immediate question would be the tax issue. Would some kind of structured payment or other device make sense to spread out the tax burden over a few years ?
I'd love to hear your comments / suggestions / questions.
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