If we sold our house this month would it count as income

[okiemom2008]

We have someone who wants to buy our house for 30k. We owe 15k(we put 15k down in May on it from retirement account)

We are right below on the means test. If we sold this house and had 15k extra to put into IRA'S and save(in cash) would we count this as income?

We want to sell it because it would be like getting our retirment back that we put into it. Our lawyer said to sell it and spend it but just wanting to get opinion on here. thanks

[hopeforus]

15k is a lot to spend in how much time?

[okiemom2008]

15k is a lot to spend in how much time?

well we would put 10 in IRA and spend 5k on I guess food and clothes? We plan on filing beginning of Feb

[hopeforus]

I thought people have said they would flag that since it would only be a one time thing and no history of doing that. So confusing, all of this! lol

[okiemom2008]

I thought people have said they would flag that since it would only be a one time thing and no history of doing that. So confusing, all of this! lol

I know! And my lawyer acted like it was no big deal. He said sell it and spend it...basically we don't want to fix it all up and clean it unless we are going to sell it. And we want to quit making the payments on it if it is just going to go to the court.

[ansky0007]

Do you not want to just stay there and live there? I am sure if you continue to pay on the home there is not enough value that the trustee would even want it.

[okiemom2008]

Oh wait I did not even think of the exemption. Can I just use the 15k as part of the 60k exempions for my state?

[okiemom2008]

Do you not want to just stay there and live there? I am sure if you continue to pay on the home there is not enough value that the trustee would even want it.

We live in Kansas and the home is in Oklahoma. We are renting up here as this is where the job is.
We are driving back to sell it next weekend. I dont want to mess with all the selling if they are just going to take the money away from us.

[ansky0007]

Oh wait I did not even think of the exemption. Can I just use the 15k as part of the 60k exempions for my state?

Thats what your exemptions are for. Look and see how much your exemptions are for your state. Federal Home Exemption is $20k so you would be covered right there. Check your states exemptions.

[hopeforus]

omgosh, you have 60k of exemptions???

I wish we had federal exemptions in Ohio. But now after your last thread I'm wondering if we will have to use WI anyway even if we don't live there anymore.

[okiemom2008]

Thats what your exemptions are for. Look and see how much your exemptions are for your state. Federal Home Exemption is $20k so you would be covered right there. Check your states exemptions.

So would we sell the house or wait until after we file? What does the 20k mean? that you can have 20k equity in it and it counts towards the 60k exemption(60k)