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Jillian Nel

CFP®, CDFA™
Personal Finance, Retirement, Insurance
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“Jillian Nel, a CERTIFIED FINANCIAL PLANNER™, directs a financial planning practice for Legacy Asset Management, Inc. Jillian is committed to educating and empowering clients and the general public about the importance of financial planning.”
Firm:

Legacy Asset Management

Job Title:

Principal & Director of Financial Planning

Biography:
Education:

BS, Business Administration, University of Colorado at Boulder

Assets Under Management:

$340 million

Fee Structure:

Asset-Based

CRD Number:

5055280

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December 2017
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    Pensions, Bonds / Fixed Income, Real Estate, Stocks, Taxes
Should we rent or sell my mother's home now that she has vacated it?
100% of people found this answer helpful

For an estimated sales price of 1,250,000, your mom's basis in the property matters quite a bit when analyzing the correct path to take.  Captial gains tax rates for single filers in 2019 are 0% if taxable income is $39,375 or below, 15% on taxable income between $39,376 to $434,550, and 20% when taxable income is above $434,551.

If she sells her home now, she will indeed get to exclude $250,000 of captial gain or up to $500,000 if she was widowed within the last 2 years.  But in order to stay at 0% or 15% captial gains rates, her basis needs to be high enough to keep her taxable income under $434,550.  

If your mom rents her home instead, you will be able to deduct taxes, insurance, maintenance, etc from the income off of the property, which will help in keeping her taxable income as low as possible.   You may even consider depreciating the property to help keep the rental income low - please discuss this option with a CPA.    Even if the rental income pushes your Mom's taxable income into the 15% capital gains range, it may not be that much of an expense.   Look at her investment income from the $600,000 she has in other assets and multiply it by 15% - its likely not too much in cost.  

You do need to consider market conditions along with tax considerations - i,e. the likelihood of being able to sell the home later and also the ability to keep it rented.  Not to mention the consideration of who will handle the rental property duties if your Mom is unable to do so.  

last month
    Banking, Debt, Financial Planning, Retirement, 401(k)
When selecting funds to invest my HSA dollars, should I be looking for funds that pay a quarterly/annual dividend, or should I invest my dollars in a growth fund to take advantage of the decades of work I have left until retirement?
100% of people found this answer helpful
May 2019
    Debt, Financial Planning, Retirement, Pensions, Social Security
Should I use my 401(k) to pay off my mortgage after I retire if I am still raising three children?
August 2018
    Retirement, IRAs, Retirement Plans, Women & Money
Should I convert my two 403(b) accounts into a Roth IRA?
100% of people found this answer helpful
August 2018
    Retirement, Social Security
Are Social Security benefits withheld because of excess earnings returned to you in monthly installments when you reach full retirement age? 
100% of people found this answer helpful
June 2018