And Just Like That…

Running late this week as I am just coming down from my euphoric tax high – but more about that in a moment.

First a programming note: for those who are following my not a recap of the Courtship, it will be late this week because the next episode isn’t until tonight at 1 am or so. I think it was pushed due to March Madness (and maybe ratings 🤔?) So I will try to get it posted by Friday 😁.

Now back to my tax high 😜. As you may recall, I sold my house and 158 acres last year – the house plus 58 acres and then the 100 acres separately. And I have been stressed about capital gains taxes on the land sale ever since 😬, (I did make a nice chunk of change on that). But then, because I was nice enough to float the homeowners a 50K “loan” for 6 months for 34 of the 58 acres, it too had to be surveyed and carved off of the house price as it was technically “sold separately”. Follow me so far? In short, I thought I would have to pay capital gains taxes on 134 acres just because in order to sell the entire property, it had to be cut up.

And I couldn’t understand why I would have to pay capital gains, when I had lived on and maintained the entire property for over the 2-year required period. And just because I had to carve off pieces, I was getting screwed? So I have been stressed out over this for months. I figured I was going to owe about 30K or more in capital gains taxes, plus whatever I owed on my investments. I mean if I was a drinker, I would have probably been drinking myself to sleep these last three months.

Last week, I finally bit the bullet and went to my tax prep people. They have done my taxes for the last 2 years and have been incredibly helpful (and a lot cheaper than the tax accountants my ex and I used). I sat down with Jeremiah and layed out the situation. He says “give me a minute”, tickity taps on his keyboard, asks a couple of questions and just like that NO CAPITAL GAINS 🥂 🍾! You see, since I sold the land within two years of the house sale – capital gains didn’t apply. Now, if I had made over 250K on the entire sale, then that would have been taxed for the overage. But I didn’t, so my “paid forward alimony” (the house and land) from my ex is tax free. Finally the curse of that property has lifted – oh happy days.

All that was left was my investments and since it was a wash – no taxes this year! Well excecpt I owe the state of South Carolina $40 🤷🏼‍♀️. Still better than the alternative 😬.

I went from being resigned to paying a hefty chunk of money to elation in the span of 10 minutes. I was so happy, I told Jeremiah he was a god among men, and I would marry him in a heartbeat (ok not really, but I was just so excited 🤩). 

And I’ve been in a euphoric state ever since. I’m finally coming off the high as the rest of my bills are knocking on my door (hello homeowners’ insurance). But I can’t even be mad about that because a) no taxes owed and b) as much as I loved my old house, the carrying costs were insane and I am financially more stable without it. 

This is why it pays to pay people who know what they are doing. Just saying 😉. 

And yes, tickity is a word damn it 😆!