Everything you guys say is making sense.Your taxes are gonna be what they gonna be; the withdrawal from the IRA is fully taxable income. There are no angles to work here. You can use any of the free tax models to estimate what your taxes (to the IRS and the CA FTB) for that $50K upper in 2024 and 2025. We can ballpark it if you know your 2024 income tax bracket - or tell us your taxable income. Likely to be not that bad (considering), since your income overall seems modest, you are filing MFJ, and Social Security is not taxed in CA. Who does your taxes? That's who you need.
https://www.bogleheads.org/wiki/Tax_estimation_tools
My 2023 income tax bracket was 12% and taxable income was $39k. Should be basically the same for 2024, except I'll have to add the $50k to it that I withdrew but I think I'll still be under the cap and remain in the 12% bracket. The last couple of years I've had United Way do my taxes for free. Again, I pose the question, should I hire a CPA, financial advisor, tax consultant or tax attorney?
The house needs $100k in repairs to get it to the $750k mark. I think it would sell quickly at $650k in as is condition. Existing loan payoff of $270k leaves $380k. Primary home loan payoff of $200k leaves $180k. LT cap gains will be roughly $50k leaving $130k. Real estate commission of $39k leaves $91k. We may have to pay the former tenant $30k or more (that's a long story) leaving $61k and the lawyer is going to want a few grand too. My big investment return gets whittled down pretty quickly!
You guys have been very helpful but as stated, this board is my starting point. Next up is hiring a professional to guide me. Just not sure which one.
Statistics: Posted by evintho — Thu Jan 30, 2025 7:40 pm
