Now about that "gift" of property from your mother. How long did you have it? What was the value at the time of the gift? Has the value gone down since the gift? Were there improvements on the property? There are so many questions about this that you do need to investigate very closely. Your capital gains bite may not be a big as you think it will be. Also, capital gains taxable regulations are changing.

If you have to sell soon, put the money in CDs until you have made up your mind as to what you want to do. No matter how it is set up, the chances are that you will have to pay taxes somewhere along the line.

You can buy annunities, both taxable and non-taxable from a bank. Banks are not as apt to go out of business as some company that may or may not be reliable. The returns may not be a great as those promised by others, but they will probably be far safer.

I would seek out the advice of an investment counsoler at two or three banks in your locality and forget about the guy that travels about trying to sell something for his company. You are wise to wonder about the safety of his company.

I really believe that we are going to see some changes in the capital gains laws. People complain that it's just for the rich, but really, it helps far more people like you that have a small piece of proberty instead of stock and bonds. I know if you had gazillions in dollars, you wouldn't even blink at what the caital gains tax was.

Good Luck with what you decide.....Oh, and looking at your "MY PAGE" I see we share the same birthday. Aug 5th is a great day to be born in my opinion. LOL

Especially regarding tax consequences of the transmutation of a piece of property carrying a potentially high tax liability into an annuity.

Whether the purchase of a vehicle whose purpose is at least partially to support one's retirement needs would have a major effect on the current tax liability.

An annuity is you giving a major pot of money to an entity, usually an insurance-related agency, in return for their guarantee to pay you a pre-determined amount on a regular basis (usually monthly, sometimes quarterly or annually) for a certain contracted period. Sometimes the "guaranteed period" is till death.

In some cases you can provide the asset now, with the understanding that the initial payment would be deferred - you'd begin to collect at a certain pre-determined time, e.g. age 63.

Should you become disabled at age 60 and unable to work - tough cookie - no payout till 63, if that was the original contract's provision.

A regular annuity would agree to pay you that pre-specified amount, possibly monthly, as chosen at the time of purchase, for that specified period - often for life.

If you die next month, the issuer smiles - and keeps the rest of the pot of money that you'd given them.

So - many ask for a guaranteed payment period of, say, 10 years. In which case a specified beneficiary or your estate would receive the rest of the guarantee - whether regularly for 9 years and 11 months or, more likely, agreeing to accept a payment in full now of a reduced amount, being the amount needed to underwrite the cost of making that ongoing payment to your beneficiary/estate.

In which case - as there are extra contingencies that might cost them more money - the amount of the regular payment that they'll offer is reduced.

Or, one can choose to have the income support both members of a (usually aged) couple for life. Resulting in another reduction in the amount of the regular payment that they're willing to offer.

With a life insurance policy, you bet that you may die, and they assume that you'll probably live.

Here, you're betting that you're going to live long enough to receive full benefit of the amount you'd invested - possibly more, if you live longer. They bet you're going to die sooner, rather than later.

In each case - they've got the actuaries.

Once you set up the originally agreed plan, it's pretty well set in stone - almost impossible to change it.

I've never been in a strait-jacket or handcuffs - and have no desire to arrange to be in them.

One of my main emphases as a financial planner has been to encourage folks to learn how to manage their own money. I charge for my time - sell no financial products - so my clients don't need to worry that I'm trying to sell them some financial product - which in most cases is one of often a limited selection that they sell, out of a great variety available.

Another reason that I don't like an annuity at this time is that the rate of the agreed payout relates very closely to the level of interest rates available at the time that the annuity is set up.

And interest rates are at historically low rates, just now. But if interest rates should rise substantially in the next few years - which they may do, for the U.S. government is running large deficits currently - and promising tax cuts. Which usually results in inflation, so interest rates rise.

But - the person who arranged an annuity at present will be stuck with that low level of payout rate from here on.

An old lady of past 80 told her nephew and niece of her idea of buying an annuity. They called her financial planner in another city. He spoke of the idea that the basic annuity dies at the death of the annuitant. They thought not. He cancelled another appointment to visit her, as the contract was about to be finalized.

They asked the agent selling the annuities how much residual value there'd be on her death - "Oh, they didn't make such guarantees!". On that type of contract.

Good wishes to all,

joyful guy/Ed

Call your accountant NOW, make an appt., sit down with him and find out exactly what your tax liability will be. Whatever it is, it's not going to be 100% of the selling price--you're going to make something off the property no matter what, I'd bet. Then, get and take the advice of your accountant as to how you can reduce your tax liability--there are many, many legal ways to do so, if you go to a qualified professional. You still have time this year, to get your ducks in a row, so you lower the amount of taxes you'll be paying.

But really, most of these so-called financial advisers, are salesmen, who's main job is to advise you to take money out of your pocket and put it in theirs. You need to get an honest opinion from someone who isn't going to make money from telling you the best way to procede.

As to annuities? I have one, but only because it was left to me as part of an inheritance. Looks, though, as if this one, at least, is pretty safe--they've told me exactly how much I'll be getting, per month, for the next 30 years. It's a very definite figure. I'm assuming they're well-regulated