Selling stock for down payment - timing?

[Anonymous]

Anonymous wrote:

Anonymous wrote:What's the most tax-effective way to deal with a large cash gift for downpayment from immediate family? Any way to avoid documenting?

Just have them transfer it 3 months beforehand. Banks don't go back that far.

As far as IRS gift tax rules, you can get a certain amount from each parent to each you and your spouse yearly. I forget what it is this year, but it's a lot when you multiply it x4.

+1, 3 months in advance. No need to discuss with lender. As far as they know it is your money. I have never shown all my accounts to a lender. Just enough to qualify for the loan.

[Anonymous]

We moved the downpayment from the market to cash equivalent in October (many years ago) because we were making offers on houses. Many got rejected by eventually we had a ratified contract in Dec. and made purchase in Feb.

the market TANKED between Oct and Feb. I think once you decide to spend it, you've got to stop risking it.

[Anonymous]

It's a good time to get some money out of the stock market from the looks of things.

[Anonymous]

Anonymous wrote:It's a good time to get some money out of the stock market from the looks of things.

Oh? What does your crystal ball say?

[Anonymous]

It says the Dow just lost all its 2014 gains and people are dumping stock.

[Anonymous]

Anonymous wrote:It's a good time to get some money out of the stock market from the looks of things.

If you're a fool. Only the average american buys high and sells low.

[Anonymous]

If you are actively looking for a house do it know. We just bought a house - got the keys two weeks ago). I sold 50,000 dollars worth of stock I had and it took longer than I thought. I had never sold stock before. I had the money in a Vanguard brokerage account. I underestimated the time to settle (close of market plus 3 days), then I didn't realize I had to verify my bank account which took 8 days then transferring the money took three days. The loan officer wouldn't send our docs to the underwriter for final approval until the money was in our bank account as final not pending.

[Anonymous]

Anonymous wrote:If you are actively looking for a house do it know. We just bought a house - got the keys two weeks ago). I sold 50,000 dollars worth of stock I had and it took longer than I thought. I had never sold stock before. I had the money in a Vanguard brokerage account. I underestimated the time to settle (close of market plus 3 days), then I didn't realize I had to verify my bank account which took 8 days then transferring the money took three days. The loan officer wouldn't send our docs to the underwriter for final approval until the money was in our bank account as final not pending.

+1 -- It isn't instantaneous by any means.

As to selling because the market dropped, that's what makes the rest of us rich.

[Anonymous]

Anonymous wrote:

Anonymous wrote:If you are actively looking for a house do it know. We just bought a house - got the keys two weeks ago). I sold 50,000 dollars worth of stock I had and it took longer than I thought. I had never sold stock before. I had the money in a Vanguard brokerage account. I underestimated the time to settle (close of market plus 3 days), then I didn't realize I had to verify my bank account which took 8 days then transferring the money took three days. The loan officer wouldn't send our docs to the underwriter for final approval until the money was in our bank account as final not pending.

+1 -- It isn't instantaneous by any means.

As to selling because the market dropped, that's what makes the rest of us rich.

I forgot to add that I could have been verifying bank account while I was waiting for the stock to settle but I didn't realize it. I really thought it would take two or three days, which turned into 17 long days since no financial transactions could take place during the weekend.

[Anonymous]

OP--Is your stock all company stock? I get options, RSUs each year and sell them almost immediately, regardless of whether or not we need it right away. Just a good idea to diversify away from your own company. You can always reinvest in index funds so you still have investments--they're just more diversified. Congrats on the new house!

[Anonymous]

We sold and took out money from a Roth a week before we closed, so you can do it quickly if you want to, you just have to document all transactions. It was a royal pain in the ass!