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Question for the Money Doctors

Question submitted on Oct 6, 2021.

Question

My husband and I are selling our home. We will received approximately $24k from the sale of the house. How do we account for the amount we would owe in taxes and put that aside or pay the IRS so we can take the rest and invest it or put in a money market account to grow?

Answer

If this is your residence, and you’ve lived there for at least two years, you’ll have to pay no tax. Putting it in a money market will not really let it grow. The amount you will earn will be significantly less than inflation. 

If you could buy 100 gallons of gasoline, go out and do it today,. I say that because down the road you’re going to earn a dollars worth of interest, you’ll have to pay taxes on it, but you’ll only be be able to buy less gallons. 


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