I have to put a down payment for my house but I don’t have all the cash available, so I’ll have to liquidate my long-term investments. I had set up a 5-year CD ladder of a thousand dollars each in the beginning of this year with ING DIRECT, but I’ll have to withdrawal early and take the penalty. The penalty is half the interest earned, so it’s better to withdrawal now than later. Does anyone know if I can report the loss interest on the 1040, and do I get deductions on that? I usually do my own taxes, but this year’s tax form is going to get complicated so I may hire an accountant.
I also will have to liquidate my long term stock holdings. I really don’t want to sell my stocks because they’ve gone down during the stormy market. I want to wait until my portfolio recovers a bit, but I may not have a choice. I’ll have to transfer my money from stocks and CDs over to the house, so I hope this real estate property is going to cover all my opportunity costs.