Makin some changes in the rifles I use

[fabsroman]

Originally Posted by skeet

Fabs.. I don't "need the money". I'm just at the point where I think the guns are somewhat like a liability. i keep them insured...which isn't cheap..they are bringing a bit of a premium now and with the coming financial problems in this country... Also considering selling the farm here and the one in Md...Put the money in something safer...maybe overseas.. Have found a nice place of about 30 acres or maybe buy a small place here and one in Montana..buy a camper and do some traveling...If the scum suckin pigs runnin this country do away with the Bush tax cuts....I'll be stuck with the properties as far as investments the tax will be extremely high when I sell...both places could be sold within 10 days if I chose to do so. i am also considering other options but personally feel the gummit has wwwaaaayyy too much control over our lives and our money. The farm in Md is worth quite a bit. Property was what I considered our investment for the future..with the change that Nobama has and is trying to give us I am losing options that I had before. The guns are just part of my concerns..If we travel like we are considering..where do I store them? Also the bank I have the expensive ones in..is charging a bit for the vault storage....but I do have more than guns in there..some jewelry I bought years ago and a couple of original pieces of artwork that are worth a bit.. I'm at the point now where I don't feel there is any SAFE investment..safe from the gummit is what I mean..cept maybe gold. The guns that have nostalgic value are of course..not worth much cash wise..and I would keep them. The older we become..it seems the less nostalgic we become...my wife has even sold some of the old family treasures but she keeps the little valuables she and I have acquired over the years at auctions and such

Go and see your tax preparer and run all of this by him/her. There is so much to talk about that it is insane. For example, does the place in MD still qualify for the $500,000 exemption for capital gains because you have lived in it 2 out of the last 5 years as your main residence? If not, you might want to think about moving back into it for 2 years before selling it. That law will not change anytime soon because they just changed it again last year for people that were taking advantage of it on rental properties. Same thing goes for the property in Wyoming.

Maybe sell the place in Wyoming and exempt that capital gain under the $500,000 exemption assuming that you and your wife are both on the deed. Then, take the money and put it in another piece of property with the increased basis.

Ultimately, you will have to take the money you get from selling the guns or the real estate and put it into another investment. Guess what, that investment will probably appreciate too, or you are doing something wrong. Even if you stick it in a bank and earn interest on it, interest is taxed as ordinary income, which will probably be the highest tax rate out there.

Then, there is the issue of passing the stuff along to your wife and/or kids after you pass on. If you pass on this year, there is no estate tax, but lets hope that doesn't happen. Congress will probably pass something regarding the estate tax for 2011, and if that is the case then your property will receive a step up in basis upon you passing on, whenever that should occur.

Ultimately, you need to sit down with a tax preparer, preferably a CPA, and work through all the scenarios. Short of selling everything and putting the money in the mattress, you are still subject to the government. Heck, what happens if you put the money in a mattress and the government decides to pursue a monetary policy of inflation to allow people to pay off debts with cheaper dollars. The money in the mattress will become worthless.

Edit to add: You might also want to sit down with an attorney that does estate planning.