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Question for the Money Doctors

Question submitted on Sep 25, 2013.

Question

i am self-employed and have no retirement beside social security. i am selling a commerical property that i used $30,000 from my 401K about 10 years ago for a down payment. Will have about $80,000 to reinvest. i need advice of what to do with it. i have about $10,000 in medical and personal debt. i am thinking about $15,000 in a bathroom remodel in my home. i could buy my business partner out of the businesss or pay some business debt or invest in what???

Answer

I am always a fan of paying off debt as quickly as possible. Less debt = more real wealth. However, if you reinvest the proceeds of the sale of your commercial property in another form of real estate, you may be able to postpone paying tax on that gain until sometime into the future.&nbsp This strategy is called a 1031 Exchange (or sometimes a Like-Kind Exchange) It is complicated and requires professional help. To find a CPA/PFS in your area to help you navigate, visit www.findacpapfs.org Good luck!


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