Personal Details:I am 55, living in US, married, with 2 kids, 1 a freshman in college, 1 in High School. My wife and I both work, and have combined income of $300k+ (We don't get any financial aid for college as a result) We own a house (50% mortgage principal remaining), have $300k in stocks, $150k in savings, and $600k in 401k, combined. In 10 years, my wife will have a pension worth about 75% of her salary.
Real Estate: an inherited piece of real estate in NY will be sold for $2.5M soon. The terms are to receive most of the cash after 3 years of receiving interest-only payments (~$85k/year). The title will be signed over after receiving the principal.
Tax implications: The interest-only payments over 3y will be taxed as income. The principal, when we sign over the title, will be subject to Capital Gains tax.
Distribution/Investment Strategy: i am currently thinking of taking the entire principal, and rolling it over into multiple 1031/DST investments, to avoid the 30% Capital Gains hit. I also can take another $500k - $1M up front, but that would be subject to income tax, so i am thinking of waiting to roll everything over at the end.
Looking for feedback on the investment/distribution strategy.
Submitted January 02, 2017 at 10:38AM by greenbedsheet http://ift.tt/2hHxCQe
