Should You Sell Home Stock For a Down Payment?

If you’re thinking about selling home stock, you’ve probably seen some of the recent moves in the tech sector. A recent Kleiner Perkins investment in @Home (KPCB) has resulted in nearly threefold shares of the company trading for less than half their original price. In addition, the company recently announced that three of its Kleiner Perkins partners plan to sell 135,000 of their own shares, taking their stake in the company to more than 10 percent. These moves are not particularly significant for the future of the company

While selling home stock for a down payment can be a viable option, it’s important to understand the tax implications and make sure that you’re selling the right kind of stock. While this method can be a safe choice, there are many other options available to first-time homebuyers. Home Buying 101 includes tips on saving for a down payment and preparing for a home inspection. If you’re not sure which option is right for you, check out these articles to learn about the many options available to you.

When selling home stock for a down payment, you’ll likely need to pay mortgage insurance on the amount you’re going to receive in your down payment. This will increase your monthly payment and could add a significant amount to your overall mortgage payment. While you can sell home stock for 20% of the price of your house, it’s important to consider tax implications, urgency, and the type of stock you’re selling. In the end, selling home stock for a down payment can be a great way to raise money for a larger down payment on your mortgage.

If you’ve already purchased a home, you may be wondering how to sell home stock for a profit. The IRS has many rules for calculating the tax benefits of selling home stock. One of these is that it’s taxed differently than ordinary income. Capital gains that are made over a year or more are taxed at lower rates than ordinary income. Some people don’t have to pay any tax on these long-term gains.

Once you’ve made a profit, you’ll have to pay capital gains tax. The capital gains tax rate on a stock sale is dependent on the length of time you owned it. If you’ve held the stock for a year or longer, you’ll pay only fifteen percent of its value in capital gains. However, if you’ve held it for less than a year, the rate is 35 percent. So, you should keep that in mind when deciding whether or not to sell home stock.

Leave a Reply

Your email address will not be published. Required fields are marked *