Can I get some tax advice?

Question

I recently purchased a home and put my mobile home on the market. After tons of showings, rude viewers and obvious tire kickers I accepted an 18k offer (I was asking 20). At this point I’d like to put some more money into my stock/options portfolio. The buyer said she will bring a cashiers Check Monday. So there’ll be no “under the table” opportunities. My concern is that I’ll now get taxed for the sell, then taxed again when I withdraw from my portfolio right? Is there a loophole to prove I’m not using the 18k immediately and instead reinvesting? Thanks in advance.

Basit Siddiqi · Answer

@Jesse AaronYou likely want to connect with a tax professional to make sure you report a correct return and you pay the least amount of taxes.The $18,000 is not fully taxable to you.Your gain is The sales price, less expenses(realtor commissions, etc) less basis(purchase price + improvements).There are potential ways to defer / exclude the gain.Was the mobile home an investment property or a personal residence?

Michael Plaks · Answer

@Jesse Aaron

There're two different meals on the same plate here. Put them on separate plates.

A. Sale of the mobile home. If you lived there for awhile before you sold it, then there is no tax from the sale. If you did not live there, then part of the $18k will probably be taxable. Need more details for a better answer.

B. Investing in the stock market. If you invest $10k and it turns into $15k and you pull the $15k out - you will be taxed on the $5k profit. Never taxed on the $10k you put in.

There is never double taxation for individuals. Even the IRS is not that cruel.

Wayne Brooks · Answer

You only taxed on “profit” from the sale, whether it be real estate or stocks....you don’t get taxed on just “taking money out or moving it”.

John Underwood · Answer

You will only be taxed on the gains when you withdraw from your stock portfolio.

Can I get some tax advice?

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