Forum Replies Created
-
AuthorPosts
-
joec
ParticipantMy brother lives in Texas and I would agree with mostly what BG just posted…My bro has been posting every positive thing about TX for years and no one within our immediate or extended family has moved yet. One thing that is pretty major in TX is they have no state income tax, but their property taxes are much much higher. With a single income, that helps you much less unless you were both dual, high income earners (which my brother and his wife are).
There’s also no Prop 13 so property tax assessments can sky rocket your bill in any given year. I’m sure someone can post more current info as to what their tax rates are (I think it’s in the 3% range).
Texas sounds cheap on paper for housing, but there is a reason for that. Texas has so much land and it is far more receptive to building and construction. Houses never boomed there and from reading about real estate there, it has never appreciated…ever. Maybe an expert can chime in on this also.
Properties can cash flow for rental purposes, but that’s a separate thing which people take advantage of to benefit from depreciation, diversify from stocks, etc…
IMO, I think San Diego will appreciate more than Austin over the next 20-30 years…
ParticipantMy brother lives in Texas and I would agree with mostly what BG just posted…My bro has been posting every positive thing about TX for years and no one within our immediate or extended family has moved yet. One thing that is pretty major in TX is they have no state income tax, but their property taxes are much much higher. With a single income, that helps you much less unless you were both dual, high income earners (which my brother and his wife are).
There’s also no Prop 13 so property tax assessments can sky rocket your bill in any given year. I’m sure someone can post more current info as to what their tax rates are (I think it’s in the 3% range).
Texas sounds cheap on paper for housing, but there is a reason for that. Texas has so much land and it is far more receptive to building and construction. Houses never boomed there and from reading about real estate there, it has never appreciated…ever. Maybe an expert can chime in on this also.
Properties can cash flow for rental purposes, but that’s a separate thing which people take advantage of to benefit from depreciation, diversify from stocks, etc…
IMO, I think San Diego will appreciate more than Austin over the next 20-30 years…
ParticipantA lot of times, the seller agent simply doesn’t care that you don’t have an agent. Like if you go to a new home development, even without an agent, you’re not going to get any discounts.
The seller already has a contract to pay the agent a certain percentage and doesn’t care you don’t have an agent with you since their fee is set already.
If you want a cheaper price, the seller’s agent can be a dual agent, but they may not want the hassle with dealing with you I’ve notice since if priced right, they can sell it pretty easily already. If priced wrong, the property is overpriced…
If you do a lot of your own legwork, you may want to consider the discount side where you get less service, but may save a little bit…
ParticipantA lot of times, the seller agent simply doesn’t care that you don’t have an agent. Like if you go to a new home development, even without an agent, you’re not going to get any discounts.
The seller already has a contract to pay the agent a certain percentage and doesn’t care you don’t have an agent with you since their fee is set already.
If you want a cheaper price, the seller’s agent can be a dual agent, but they may not want the hassle with dealing with you I’ve notice since if priced right, they can sell it pretty easily already. If priced wrong, the property is overpriced…
If you do a lot of your own legwork, you may want to consider the discount side where you get less service, but may save a little bit…
ParticipantA lot of times, the seller agent simply doesn’t care that you don’t have an agent. Like if you go to a new home development, even without an agent, you’re not going to get any discounts.
The seller already has a contract to pay the agent a certain percentage and doesn’t care you don’t have an agent with you since their fee is set already.
If you want a cheaper price, the seller’s agent can be a dual agent, but they may not want the hassle with dealing with you I’ve notice since if priced right, they can sell it pretty easily already. If priced wrong, the property is overpriced…
If you do a lot of your own legwork, you may want to consider the discount side where you get less service, but may save a little bit…
ParticipantA lot of times, the seller agent simply doesn’t care that you don’t have an agent. Like if you go to a new home development, even without an agent, you’re not going to get any discounts.
The seller already has a contract to pay the agent a certain percentage and doesn’t care you don’t have an agent with you since their fee is set already.
If you want a cheaper price, the seller’s agent can be a dual agent, but they may not want the hassle with dealing with you I’ve notice since if priced right, they can sell it pretty easily already. If priced wrong, the property is overpriced…
If you do a lot of your own legwork, you may want to consider the discount side where you get less service, but may save a little bit…
ParticipantA lot of times, the seller agent simply doesn’t care that you don’t have an agent. Like if you go to a new home development, even without an agent, you’re not going to get any discounts.
The seller already has a contract to pay the agent a certain percentage and doesn’t care you don’t have an agent with you since their fee is set already.
If you want a cheaper price, the seller’s agent can be a dual agent, but they may not want the hassle with dealing with you I’ve notice since if priced right, they can sell it pretty easily already. If priced wrong, the property is overpriced…
If you do a lot of your own legwork, you may want to consider the discount side where you get less service, but may save a little bit…
Participant[quote=bearishgurl]Thanks, flu. Your article explains it in layman’s terms, rather than the IRS gobbledygook I was trying to “read.” I like the idea of being able to spread the taxes out over two years, too. I think I’m still going to have to consult my tax person, tho :-{[/quote]
flu explained it real well. Definitely consult your tax pro since there’s also Social Security to consider as well as rental income, pensions if you have them which could be a big chunk of taxes down the road.
In the simplest case for a single guy/gal with say $0 income in 1 year, it’s pretty obvious you will have some options due to the standard deduction and exemption to minimize taxes.
Spreading it over 2010 and 2011 has the added risk of tax rates being higher in 2011 (Bush tax cuts expire this year)…
Please consult your tax adviser for your specific situation.
Participant[quote=bearishgurl]Thanks, flu. Your article explains it in layman’s terms, rather than the IRS gobbledygook I was trying to “read.” I like the idea of being able to spread the taxes out over two years, too. I think I’m still going to have to consult my tax person, tho :-{[/quote]
flu explained it real well. Definitely consult your tax pro since there’s also Social Security to consider as well as rental income, pensions if you have them which could be a big chunk of taxes down the road.
In the simplest case for a single guy/gal with say $0 income in 1 year, it’s pretty obvious you will have some options due to the standard deduction and exemption to minimize taxes.
Spreading it over 2010 and 2011 has the added risk of tax rates being higher in 2011 (Bush tax cuts expire this year)…
Please consult your tax adviser for your specific situation.
Participant[quote=bearishgurl]Thanks, flu. Your article explains it in layman’s terms, rather than the IRS gobbledygook I was trying to “read.” I like the idea of being able to spread the taxes out over two years, too. I think I’m still going to have to consult my tax person, tho :-{[/quote]
flu explained it real well. Definitely consult your tax pro since there’s also Social Security to consider as well as rental income, pensions if you have them which could be a big chunk of taxes down the road.
In the simplest case for a single guy/gal with say $0 income in 1 year, it’s pretty obvious you will have some options due to the standard deduction and exemption to minimize taxes.
Spreading it over 2010 and 2011 has the added risk of tax rates being higher in 2011 (Bush tax cuts expire this year)…
Please consult your tax adviser for your specific situation.
Participant[quote=bearishgurl]Thanks, flu. Your article explains it in layman’s terms, rather than the IRS gobbledygook I was trying to “read.” I like the idea of being able to spread the taxes out over two years, too. I think I’m still going to have to consult my tax person, tho :-{[/quote]
flu explained it real well. Definitely consult your tax pro since there’s also Social Security to consider as well as rental income, pensions if you have them which could be a big chunk of taxes down the road.
In the simplest case for a single guy/gal with say $0 income in 1 year, it’s pretty obvious you will have some options due to the standard deduction and exemption to minimize taxes.
Spreading it over 2010 and 2011 has the added risk of tax rates being higher in 2011 (Bush tax cuts expire this year)…
Please consult your tax adviser for your specific situation.
Participant[quote=bearishgurl]Thanks, flu. Your article explains it in layman’s terms, rather than the IRS gobbledygook I was trying to “read.” I like the idea of being able to spread the taxes out over two years, too. I think I’m still going to have to consult my tax person, tho :-{[/quote]
flu explained it real well. Definitely consult your tax pro since there’s also Social Security to consider as well as rental income, pensions if you have them which could be a big chunk of taxes down the road.
In the simplest case for a single guy/gal with say $0 income in 1 year, it’s pretty obvious you will have some options due to the standard deduction and exemption to minimize taxes.
Spreading it over 2010 and 2011 has the added risk of tax rates being higher in 2011 (Bush tax cuts expire this year)…
Please consult your tax adviser for your specific situation.
ParticipantFrom all the comments, it’s probably a good time to take that time off now if you can afford to.
Another thing to consider is if you’re financially ok for a while, you might consider doing a Roth IRA conversion while you are in an extremely low income tax bracket assuming you can pay the taxes out of your savings (I am assuming you can). I did that when I took some time off and you probably won’t see this income tax rate again…
Again, your specific situation may not make this worthwhile depending on when you stopped working and how long you take off, but it maybe possible to do conversions with 0 tax if you convert a small enough amount (or at least fall in the 10% bracket).
ParticipantFrom all the comments, it’s probably a good time to take that time off now if you can afford to.
Another thing to consider is if you’re financially ok for a while, you might consider doing a Roth IRA conversion while you are in an extremely low income tax bracket assuming you can pay the taxes out of your savings (I am assuming you can). I did that when I took some time off and you probably won’t see this income tax rate again…
Again, your specific situation may not make this worthwhile depending on when you stopped working and how long you take off, but it maybe possible to do conversions with 0 tax if you convert a small enough amount (or at least fall in the 10% bracket).
-
AuthorPosts