I have an elderly lady who is selling one of her two homes in Charlotte, NC. She lives in Illinois. I'm trying to get the home on terms instead of purchasing it cash for two reasons, less money out of our pocket and to save her from being slammed by the IRS with taxes. If we pay her the full amount, she feels she can roll the full amount into an IRA and she will be okay. My understanding is she will be heavily taxed since this is not her primary home. Does anyone have any insight on this topic? I greatly appreciate your thoughts and wisdom.
I have an elderly lady who is selling one of her two homes in Charlotte, NC. She lives in Illinois. I'm trying to get the home on terms instead of purchasing it cash for two reasons, less money out of our pocket and to save her from being slammed by the IRS with taxes. If we pay her the full amount, she feels she can roll the full amount into an IRA and she will be okay. My understanding is she will be heavily taxed since this is not her primary home. Does anyone have any insight on this topic? I greatly appreciate your thoughts and wisdom.