Nine years after Mr. Ralph's dream come true, the financial manager convinced me I can't afford two homes. Even with my friend living there and keeping an eye on things and paying some rent, I pay a chunk of change out of pocket. Plus the concern when things stop working, break and need replacing. Or she asks me a question on "how to" and I just don't remember .... she has to read the manual.
While living with my little family these past two years, I have decided I would rather live here than there. More family here, easier to visit family, more retail, more volunteer opportunities, more seasons, better library, better Adult Center and a great foodie area. And they convinced me that they would rather have me here, despite the close quarters. I suggested maybe when Braeden turns 10 I could find a small apartment nearby and he could have my room. Nope! They think having them share a room keeps their healthy relationship growing. Of course, I may want my own bathroom by then ...
Luckily (I thought), Maui housing prices have gone WAY up since we purchased. This is my retirement nest egg. I was so excited to think about earning even 4% on the investment of net proceeds, coupled with Social Security ... I would be on Easy Street.
I contacted my friend who is the realtor who helped us buy the house. She did a little research and WOWZA! The price range she mentioned is even better than I was thinking.
My bubble was burst the week before Christmas when my friend/realtor gave me a draft escrow recap. I had no clue the State of Hawaii imposes a 7.25% tax on the SELLING price of homes sold by nonresidents.
My realtor is not too happy. I don't blame her. She's put in so much time and energy and dealing with a grumpy and obstinate tenant. But for $45,000 ... I think it is in MY best interest to not pay! She keeps telling me how I can file and get some of that money back (it is NOT a tax, she says, it's a "withholding". I get that ... but it's a withholding of a TAX) At least with just capital gains I can deduct the cost of the house (at the time of Mr. Ralph's death), all the improvements and be excused from the first $250,000 of gain.
Sorry for whining. I know it is a first world problem and this will make me an upper middle class white privileged Widow. I don't mind paying my fair share of taxes but Hawaii? You are asking too much!