@nick220 I’m curious how three kids college is covered under GI Bill
Also, something I’ve been thinking about myself, a small portion of the money could be used to start a 529 for potential future grandchildren. Open an acct in your name, make sure you adjust the risk to account for the long time horizon, contribute and wait.
@itsnikki Some states have their own GI bills (or equivalents) which offer additional benefits. My home state gives extra benefits to veterans who separate or retire with 30%+ VA disability, including 128 credits or 8 full time semesters for each of your kids.
I have considered opening 529 plans to cover room & board or other miscellaneous educational costs. I've also been reading about how 529 plans can be transferred down to grandkids like you were saying. Definitely not a bad idea.
@itsnikki Start with the state which you enlisted out of, i.e. your home of record. Most state-based programs typically base eligibility from where you enter military service, not where you retire. Start there.
@nick220 Make sure you have accounted for the taxes (both state and federal) on your rental property. Not only do you have capital gains tax you have to pay taxes (at a higher rate) on the depreciation that you have been claiming, Here is a good article https://learn.roofstock.com/blog/how-much-tax-when-you-sell-rental-property Great job heading toward debt free I like r/pawnman99 and r/Patjshaz simple advice. There is nothing better than being debt free- Don't be in debt to anyone. R 13:8
@pastora916 I think we should be okay taxes wise. Thanks to the military, our taxable income will only be around $60K this year, and that's married filing jointly. My current residence has no state tax, but since the property is out of state I will have to pay some tax there. Thankfully since that's my only taxable income there the standard deduction will help offset some of the state tax liability. As far as recapture tax goes, that shouldn't be too bad, we only took depreciation for 3 years and it wasn't much, so 25% of that will be trivial. The final saving grace is all the child tax credits thanks to the three kids, definitely helps reduce our federal tax bill. Maybe it'll be worse than expected but between our lowish taxable income putting us in a low capital gains tax bracket and only having 3 years of depreciation on the initial depressed value of the property, I don't think it should be a huge hit. I guess I'll find out in a couple months.
