Lease allows learning curve in new city

Dear Bruce: My husband has accepted a new academic post – one he has wanted for many years – and we will be moving. Our house, worth about $125,000, is paid for. Obviously, we don’t know how long this position will last because he has a way to go before tenure. Should we buy a house immediately or rent an apartment? We have a medium-size dog and a cat, so many landlords won’t rent to us. What are your thoughts? – P.S., Minneapolis

Dear P.S.: In my opinion, you would be foolish to buy a house as soon as you move into a new community. You should live there for a few months to learn a little bit about it. You will get to know the different areas in which you might want to settle, where all of the traffic problems are, etc.

As to renting versus buying, if you think there is any possibility of leaving in three years or less, by all means rent. I know it’s difficult with animals, but if they are well-behaved, you can find a landlord who will allow pets for an additional $10 to $15 a month. This could be a real problem in large apartment complexes, given the fact that the other tenants know about the no-animal policy. You would be far better advised to try to find a single-family home or duplex for rent.

Antiques sale draws capital gains tax

Dear Bruce: I acquired some antiques about 30 years ago. I have since learned they are quite valuable. I sent them to a well-known auction house and was shocked to learn I have cleared more than $200,000. I have no record of the cost to me, but I know they came with a bunch of other antiques and they cost literally nothing. Do I have to report this to the Internal Revenue Service? What are my obligations here? – E.N., via e-mail

Dear E.N.: Bad news. You will have to pay capital gains on whatever portion of the $200,000 you net. Having no receipts to demonstrate your cost basis, you’re going to have to do some homework and find out what these same articles likely were worth 30 years ago. Your auction house should be able to give you some estimation there. All things equal – and your personal income is a variable – tax on the gain will very likely be the max of 15 percent. You’ve still done well. Congratulations.

Spouses can have different legal residences

Dear Bruce: My husband and I have two homes; one used to be our summer house. Now that I have taken a job close to the summer house, I’m living there. My husband comes to that home more often than not to visit. I want to vote in the village where I now reside, but my husband says I cannot because voter registration determines legal residence. He also says we can only homestead one property, and that is the home where I used to reside. There are perks to being a legal resident in this resort community, for which I am not eligible because I cannot claim legal residence. So what determines legal residence? Also, can a husband and wife have different legal residences? – J.M., via e-mail

Dear J.M.: You’re making this entirely too complicated. You can have one legal address and your husband another, particularly if there are homestead considerations. The problem can be in terms of mortgages, but let’s assume the properties are paid for. One can be in your name, one can be in your husband’s and each of you can use a different legal address.

How do you determine a legal address? From where you file your tax return, where your dog is licensed, where your car is registered, where your driver’s license is processed. You’re correct when you say there are perks to being a legal resident. Many married couples, assuming the properties are paid for, have separate legal addresses. It doesn’t mean you’re not in love with each other, but you are allowed to choose. Choose wisely.

Bruce Williams is a national radio talk show host and syndicated columnist. He can be reached at bruce@brucewilliams.com.[[In-content Ad]]