I am 53 and self-employed. My wife and I had to file bankruptcy for the first time in 2012 after 2008 crash took toll on our business. Lost home and cars. Developed and sold a website for $55k this year and bought foreclosed 5BR 3BA home with it for $50k after paying off credit cards.
We'd like to stay in home but we will owe income tax of $17k or more for 2016 and can't get a mortgage loan until three years from foreclosure which was in 2015 (home was discharged in 2012 BK but we tried unsuccessfully to stay in it).
We have two daughters with medical problems but my wife is back to work part time $10 an hour. My income is about $2,000 a month right now after selling the website that generated about $1,500 a month income (I am working on another one now).
If we don't pay all taxes due for 2016 on April 15, 2017 we will be in violation of IRS Offer In Compromise contract (requires 5 years of no late filings or payments). The real estate market here is good for sellers right now (low inventory, higher sale prices) and I don't want to wait too long because you never know when it may change.
If we flip the home we will have to go back to renting which costs at least $1,200 a month around here for a decent place. Our real estate taxes are very low ($750 a year) and the house is roomy and has had new roof, siding, and windows installed three years ago.
My wife would like to keep the place, but my concern is that if I can't generate $17k to pay IRS by April 15, 2017, we will lose the $48k IRS debt that they forgave us for. Therefore, we may need to do repairs to home and flip it. Any advice would be much appreciated!
Stay or sell?
Mon Oct 24, 2016 9:19 pm
ken-do-nim Full Member
Cash: $ 15.40
Joined: 08 Sep 2016
Location: Mansfield, MA
It doesn't sound like you'll be able to generate the $17K - probably not even close - so I vote flip.