All Forum Posts by: Ken Sanders

You can also use thin screwdrivers instead of waiting to receive the Kwikset tool. There are a couple of good tutorials on YouTube. I'm a pro at it now!

I'm single and looking to sell my primary residence of 2+ years in 2013. Is the $250k exclusion still in play for this coming year?

Steven, thanks so much for the help!

Dale-bI'll post back should I attempt it.

I was under the impression that a pro-rated exclusion was allowable due to "unforeseen circumstances" as the IRS defines them. I've never seen any mention of unemployment eligibility. I had a debt collection company (a single member LLC) that wasn't making enough profit to warrant its continuation.

In any case, assuming I had my last house for 2+ years, you're saying that two exclusions within 2 years is possible in some cases? I couldn't find that info. in any publications. Do you happen to know where I can look to find out more about this?

In the Summer of 2011 I sold my primary residence for a sizable gain. I had the house for over two years and am single, so I was entitled to the $250k exclusion.

I have owned my new primary residence since December 2011, but I'm forced to sell it as I can't afford to live there anymore. My business (I'm self-employed) has gone under and I don't have an income stream right now. The good news is that I'll make a hefty gain on the sale of the house.

Due to my current situation, I can see how I would ordinarily be eligible to a pro-rated exclusion, despite owning the house for less than the two year requirement, but what about the fact that I took advantage of the exclusion last year? Are there ANY exceptions to the rule that one can't use the exclusion twice within two years?

That makes sense, Bryan. In the SD 401k/IRA world, I think it's always best to lay things conservatively unless you're absolutely positive one way or the other.

Pertaining to the balance; what if one had, say, $100k cash and an active loan to a third party for $100k at 10%. Would you include the loan amount and the interest? Again, I think I'm play this conservatively, but I'd still like to know the answer for the future.

I'm looking to take out a loan from my self-directed 401k, but I'm curious as to what interest rate to charge myself. I actually want to charge myself as much interest as possible since I'm not planning on contributing anything to the 401k this year. Anyone know if there is a maximum allowable interest rate and, if so, what it is?

Also, I have several different investments in my 401k in addition to cash. My plan documents state that I can borrow $50k or 1/2 of the vested balance, whichever is less. Does the vested balance include the value of my investments. Or, is it simply the amount of all of my contributions to the plan since its inception?

I have a single-member LLC that owns a residential property. The property is my personal primary residence. If I sell my house in, say, 3 years, am I still eligible for the $250k exemption?

Just an update for anyone interested:

I went to my credit union today and applied for the HELOC. I received a call from their real estate department a few hours later saying that they need: 2009 and 2010 tax returns, a current year profit & loss statement for my LLC (which owns the property), copy of my drivers license, a copy of a utility bill, and proof of paid up taxes. Since I just recently bought the house, they said that the settlement sheet would suffice for the proof of paid taxes.

They also said, and I quote, "Since you just bought the house, we're going to have to use the purchase price as the number". I'm thinking that they mean they're going to use the purchase price as the houses "value" in lieu of an appraisal, as no appraisal was mentioned.

I'll post another update when the deal is done.

Interesting, Jeff. How low of a loan-to-value are we talking?