Questions, Questions.....

**acabin42** · 01-06-2012, 08:37 PM

Hi everyone. I have some questions about what's needs to happen this year, and I know you are the ones to ask....

We are selling our property that we have in another state. Will only get $50,000 for it, but that is ok.... I have questions here. I know that we will need to pay taxes on this income, and I will call R&H Block and ask about it, so we can put that money away, or whatever.

We are on disability right now, so fixed income. We are doing ok on it, but am trying to tighten our belts so that we will have a savings of some sort this year. DH and I both got a raise on our disabilty checks, and I put the extra raise in the savings acct.

My questions, is this.... we have so many things that need to be fixed, dr. bills to be paid off, medical tests that need to be run (no insurance for me. I qualify for Medicare in Sept.), and so forth.

Here is what we want to do with the money.

Buy a new to me car.... fix DH's car and pickup, pay off doctor bills, try to hold off on medical tests until after medicare kicks in, do some house repairs, and then put some in long tern savings accts.

We don't want to spend a lot of it, but it isn't really that much, so am questioning my judgement.
Does it sound like to you that we will have enough after taxes to do some of these things?

I know I am rambling, but....well, that's what I do....sorry.
thanks in advance.

**acabin42** · 01-06-2012, 11:35 PM

Been thinking since I posted that......
I think I should go ahead and fix my car instead of getting another one. It has over 300,000 miles on it, and I don't really trust it to take on trips.....BUT, if I only go on long trips 2 - 3 times a year, then I could rent a car for that..........much cheaper than paying taxes on a new car, and carrying full coverage insurance...

So, I guess now, my question is, does anyone have any idea how much taxes will be taxed on that $50,000.? And what kind of long term savings should I look for? I don't know what to do with it.

**hmcart** · 01-06-2012, 11:37 PM

I guess my only question is if you fix the car and truck and buy a third car, do you really want the cost of maintaining 3 vehicles?

**hmcart** · 01-06-2012, 11:38 PM

well I guess you beat me to it!

**tmffv** · 01-06-2012, 11:58 PM

I don't think there is any way someone here can tell you if you have enough for what you have planned. Auto repairs could cost from several hundred to several thousands easily. Home repairs - same thing. Dr bills could be any amount. I would think taxes on the property you are selling would depend on what state it is in, but I really have no experience in that arena.

Gather up all your debt, and estimated costs for repairs and wait to see what you will get for the sale of your property. If you have enought to cover it all, great! If not, I think the most important thing you can do is prioritize your needs. Make a list of the most important and pressing issues that must be addressed first and pay those first.

Do you have an emergency fund?

**acabin42** · 01-07-2012, 12:24 PM

No, I don't have a EF. That's why I started putting our "raise" from our SS check into savings. Having a EF is one of the things I want to do.

I should just let it play out. You are right. Thanks!

**Wendy99** · 01-07-2012, 01:21 PM

Personally I would start with an emergency fund,then pay the other stuff as you see fit.

**frugalfranny** · 01-07-2012, 05:03 PM

Originally Posted by acabin42

does anyone have any idea how much taxes will be taxed on that $50,000.?

As another poster said........each state can be different and selling land can be different than wages for taxes......

I would try to google the info for the state that the property is in..........this could give you a better idea........even on the
type of taxes that will be due.

**dwallyfam** · 01-07-2012, 06:05 PM

The real estate agent should be able to give you an idea how much taxes would be.

**acabin42** · 01-07-2012, 08:35 PM

Originally Posted by dwallyfam

The real estate agent should be able to give you an idea how much taxes would be.

No real estate agent involved. My neighbor in the other state is buying it from me. Our place was part of a 60 acre plot.... which was divided. They have the other 40 acres and now wants to buy our 20.

Thank you for the responses. I am just a little anxious about this. You know, trying to figure out our yearly budget, and goals for the year and stuff like that. Oh well, what will be, will be.

**DWHISNANT** · 01-07-2012, 10:01 PM

What is the tax value of the property? 50,00.00 seems mighty cheap for 20 acres of land. In NC you pay taxes only on the amount greater than the original cost.

**monkeywrangler71** · 01-07-2012, 10:10 PM

I'm in a different country, so it might not be the same. But here, you would be paying capital gains tax on the sale price minus the price you originally paid for it, not the entire sale price.