Using Stock and Mutual Fund for mortgage down payment

3 Replies

Hi, I'm moving back to Oahu to help my family and need to cash out about $85,000 (60K in a mutual fund and 15K in stocks) for a down payment on a place to live. Does anyone know if there is a way to reduce the amount of taxes I'll have to pay for selling the investments? Neither of the accounts are part of a ROTH or 401K, just money I've put aside over the years. Thanks in advance for any advice.

That's a great question for a CPA, of course, but you could put some of those funds into a new tax vehicle for your 2016 returns. So even though those funds aren't part of an IRA now, you could put them into a new IRA, but the yearly maximums aren't sizable enough to make a big dent IMO. // If you have a business, then be sure to start keeping track of expenses that could be written off.

I also suggest grabbing the BP tax book - there's probably some good info in there for you.

If you can afford to pay the money back and it is a non-retirement account, you could check to see if your broker offers loans against your assets.  I have borrowed short term cash against my Schwab-One account for cash purchases of real estate investments.  A potential issue here would be if the market tanks, you may need to come up with the cash to cover the difference between your loan amount and the value of your underlaying securities.

Thanks for the suggestions everyone.

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