Sell Home Stock For a Down Payment
Three Kleiner Perkins partners plan to sell 135,000 shares of their @Home stock. The KPCB-funded startup has doubled in value since going public eight months ago. The sale will give KPCB a 5.2 percent stake in the company. The three partners own 60,000, 50,000, and 25,000 shares of @Home, respectively. The stock is currently trading at 34, close to its 52-week high. They have not disclosed how much they are selling, but the move will undoubtedly be a good thing for the company.
While selling stock for a down payment is a sound financial decision, it is not always the best choice for every home buyer. You must know the tax implications and choose the right stock for your situation. You can also find other options to help pay for your down payment, such as using a home equity line of credit. We recommend reading Home Buying 101 to learn more about home loan options and saving for a down payment. The guide also covers topics such as home inspections hereby verify https://www.sellmyhousefast.com/we-buy-houses-saint-joseph-missouri/
It is important to keep in mind that the math of selling home stock to buy a house is complicated. You should consult with a financial adviser and know exactly how much money you need. You should also make an estimated tax payment, so you can pay your taxes in a timely manner. Otherwise, an underpayment penalty can come as a big surprise when April rolls around. Therefore, if you plan to sell home stock for a down payment, make sure to check out all the details of the transaction and the taxes involved.
While buying a home is not a gamble, you must also ensure the capital gains tax will not be too high. Your gain from the sale of home stock is taxable as capital gains, but you can avoid the tax if you hold onto it for the long term. The IRS taxes long-term capital gains at lower rates than ordinary income. Additionally, some tax brackets do not tax capital gains at all. So, if you do decide to sell home stock, keep in mind that it’s worth the tax consequences.