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What can you advise me about reinvesting the proceeds on the sale of land?

I need to reinvest the proceeds on the sale of land.

asked by imoecc (18)

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Tags:  finance  investing

answers

Do not assume that you must re-invest in real estate--you should treat it like money that comes from any other source. Where to invest depends upon your goals and willingness to take risks. If you want security, invest in bonds or certificates of deposit. If you're willing to take risks, stocks have a higher chance of reward.

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posted by John (7928)
7 votes

If the proceeds of the sale of land was your part of your primary residence than you may reinvest it in other land for your primary residence tax free. You could also do a 1030 exchange if the land was for investment purposes and is unimproved and meets specific other guidlines

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posted by Sean80 (22)
4 votes

If you are looking at reinvesting to avoid taxes, it is probably too late. For the gain on the sale of land to be postponed, you would need to to a 1031 exchange set up in advance with a title company and you can't touch the money.

3 votes

when you sell land you have to by more land or you will have to pay a tax on the land you sold. as long as you by land within 18 months of the orgenal sail you wont have to pay the exit tax.

3 votes

With the proceeds of a land transaction, you can invest in any number of investment vehicles. One that offers some of the best returns in that of a Municipal Bond mutual fund. Theses are federal tax income free.

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posted by Egon (59)
2 votes

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