May 2018

May 2018

Monday, April 15, 2013

Not a Fan of Uncle Sam

When we sold the family business last November, we received eighty percent of the purchase price. As is normal with the sale of a pest control business, the remaining twenty percent was held back to be paid out a year later.  But the exact amount of the second check will be based on retention. I've decided to expect nothing, so that any amount will be a nice surprise.

Two-thirds of the purchase price we already received has been invested, planning for Jim's retirement in five years.  And the hope was the remaining third would cover taxes and the remodeling of our 30+-year-old kitchen.  But Uncle Sam had a different idea.  We ended up being taxed thirty-percent of the purchase price, five percent more than expected.  If we decide to proceed with the kitchen remodel, therefore, we'll now have to tap into our home equity.

That's a "hard pill to swallow" since we've been debt-free for nearly five years.  But our old kitchen is quickly getting to the point when it will have to be redone no matter what.  Appliances are slowing dying and new ones will not fit the same foot-prints.

So a kitchen remodel is my newest project.  Last week I met with a designer and general contractor. I've also been doing a lot of online research, and closely examining our budget to find ways to save more money.  I should have all the numbers by early May.

I love to cook and have been dreaming of a new more-efficient kitchen for many years.  I'm "keeping my fingers crossed" that, one way or another, my dream will be realized this summer despite Uncle Sam's greediness.



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