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Tax.appeal.168, Accountant
Category: Finance
Satisfied Customers: 3567
Experience:  Tax Accountant
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I am think of buying a rental property for $60,000. I owe

Customer Question

I am think of buying a rental property for $60,000. I owe the house i live in free and clear and it is worth $165,000. I have $84,000 in stock and ira investments. My credit score however is only about 561. So I am considering taking the money out of my investments, because I need more income now and I would still be able to rent out the house during my retirement as well. What do you think? The house is bank owned and actually work $95,000.
Submitted: 2 years ago.
Category: Finance
Expert:  Tax.appeal.168 replied 2 years ago.
Thank you for contacting us to assist you today. My name is ***** ***** my goal is to provide information to the best of my knowledge to assist you.
Before tapping into your stocks and IRA investments, you may want to consider doing a cash-out finance on your house since you own it free and clear. Selling stock and tapping into your IRA investments would likely create a taxable event, meaning that you may have to pay tax on the money that you take from these vehicles. If you are not 59.5 years old or older, taking a distribution from the IRA would definitely create a taxable event. Not only will the distribution be taxed as ordinary income, you will also get hit with a 10% early withdrawal penalty. There are other ways that you may be able to accomplish what you want as well. You might find the blog at the following link to be beneficial;
Let me know if I can be of further assistance to you regarding this matter.