Three year cruise

[dvcgirl67]

I feel bad for them too, but what ever happened to the axiom, let the buyer beware? I couldn't fathom handing over many thousands of dollars that represent my entire savings to a small company in another country with such scant information. You are correct, it's very sad.

I thought the same LM, but the one couple seemed a bit unsophisticated perhaps? It had the feel of desperation for them....like they were running away from life to a certain degree. Sort of...."we're shooting the works to see the world"....whatever happens next, we'll deal with it then.

 

[Deb]

If I did, and I might if I had the means, never ever with an untested company

 

[RedAngie]

I read this article in the Times and it was fascinating and sad. TL;DR a couple sold almost everything they had to take a 3 year cruise around the world and then it got cancelled. They are now stuck in Istanbul trying to get a refund from the cruise company and repatriate back to the USA.

https://www.nytimes.com/2023/12/28/travel/3-year-cruise-life-at-sea.html?searchResultPosition=1

But it made me curious if any of you would do this if you had the means (at your disposal; the idea of selling most of my possessions to fund a 3 year cruise is absurd). It would be a once in a lifetime trip but 3 years is a long time...

And what did they intend to do after three years when the cruise was over and they had little or nothing to live on?

 

[NYCgrrl]

Let's not forget also that not every part will be equidistant away and that some ports will require more days at sea to reach.

How much fuel the boat could store was part of the logistic problems the company team was having as well.

 

[NYCgrrl]

And what did they intend to do after three years when the cruise was over and they had little or nothing to live on?

Win the lotto?

 

[dvcgirl67]

How much fuel the boat could store was part of the logistic problems the company team was having as well.

Yeah, that's the part when I thought...."what???" You kind of need a ship that has a big enough gas tank to cross the ocean....lol.

 

[_19disnA]

I assume cruise ships refuel at the various ports where they stop. Couldn't read the original article since it is behind a pay wall. Even if the trip was legit, who liquidates all of their assets to take a vacation? That makes NO sense to me and seems like very poor planning by those people. What did they plan to live off of once those 3 yrs were over?

 

[Deb]

I assume cruise ships refuel at the various ports where they stop. Couldn't read the original article since it is behind a pay wall. Even if the trip was legit, who liquidates all of their assets to take a vacation? That makes NO sense to me and seems like very poor planning by those people. What did they plan to live off of once those 3 yrs were over?

not everyone who sells their house would be using the proceeds to pay for the cruise. Some might just see no reason to maintain the home while they were away and plan on buying a new one when they return. For instance you are about to retire and planned on moving anyway.

 

[NYCgrrl]

not everyone who sells their house would be using the proceeds to pay for the cruise. Some might just see no reason to maintain the home while they were away and plan on buying a new one when they return. For instance you are about to retire and planned on moving anyway.

When you retire and change residence most people buy a new home almost immediately due to federal tax regulations. You are financially penalized if you don’t buy a new residence within a specific time period which is definitely shorter than three years. I cant recall the exact timeframe but think it’s about one year.

 

[Lord Manhammer]

When you retire and change residence most people buy a new home almost immediately due to federal tax regulations. You are financially penalized if you don’t buy a new residence within a specific time period which is definitely shorter than three years. I cant recall the exact timeframe but think it’s about one year.

I actually didn't even know this. Wow, the things you learn on the DISboards. So you are required to establish a new residence within a certain time frame after selling a previous one? What if someone is moving out of the country?

 

[soccerdad72]

When you retire and change residence most people buy a new home almost immediately due to federal tax regulations. You are financially penalized if you don’t buy a new residence within a specific time period which is definitely shorter than three years. I cant recall the exact timeframe but think it’s about one year.

There's an exemption that the IRS allows up to $250,000 (or $500,000 for married filing jointly) of profits from a home sale which you can use every two years (it used to be a one-time exemption).

https://www.irs.gov/taxtopics/tc701#:~:text=If you have a capital,joint return with your spouse.

 

[NYCgrrl]

I actually didn't even know this. Wow, the things you learn on the DISboards. So you are required to establish a new residence within a certain time frame after selling a previous one? What if someone is moving out of the country?

Brain fart. It’s called the capital gains tax and you can read about it here:

https://www.bankrate.com/real-estate/capital-gains-tax-on-real-estate/#avoiding-during-home-sale

Speak to a tax atty or other tax professional about your specific scenario as the answer can change depending on what region in the world you go to.

 

[PollyannaMom]

I actually didn't even know this. Wow, the things you learn on the DISboards. So you are required to establish a new residence within a certain time frame after selling a previous one? What if someone is moving out of the country?

Oh, no - it's not required. It's just that you get a huge tax break on the money you made off the first house appreciating if you turn around and put it back into a new one. (And I think it only works if it's your primary residence. I'm not sure about vacation homes or rental properties.)

 

[PollyannaMom]

At this stage in my life - absolutely not. I have too many people (and pets) I wouldn't want to leave.

If I was all alone, a long world cruise might be appealing - but not without enough money to afford it and still have some left afterward.

 

[Lord Manhammer]

At this stage in my life - absolutely not. I have too many people (and pets) I wouldn't want to leave.

If I was all alone, a long world cruise might be appealing - but not without enough money to afford it and still have some left afterward.

This was us. I even discussed with my wife if she'd be interested but we just can't leave our pets that long. Neither of us are particularly close to family and are moving out of the country in a few years anyway, but 3 years without getting a hug from my golden retriever is a hard no (and I don't anticipate that pets would be allowed on the cruise).

 

[Lord Manhammer]

Oh, no - it's not required. It's just that you get a huge tax break on the money you made off the first house appreciating if you turn around and put it back into a new one. (And I think it only works if it's your primary residence. I'm not sure about vacation homes or rental properties.)

I see, this is very good to know and I will studying up on this before I move.

 

[dvcgirl67]

not everyone who sells their house would be using the proceeds to pay for the cruise. Some might just see no reason to maintain the home while they were away and plan on buying a new one when they return. For instance you are about to retire and planned on moving anyway.

Very true. DH and I plan to sell our house when we retire and be nomads for a period of time. We don't want to be long distance landlords and be fooling with the house.

The one couple in the article though....they sold everything, seemingly to put it all into the cruise, and were now claiming to be homeless.

 

[ronandannette]

There's an exemption that the IRS allows up to $250,000 (or $500,000 for married filing jointly) of profits from a home sale which you can use every two years (it used to be a one-time exemption).

https://www.irs.gov/taxtopics/tc701#:~:text=If you have a capital,joint return with your spouse.

A little OT, but I'm curious. Are real estate profits taxable because your mortgage interest is also tax-deductible? Canadians do not pay capital gains on the sale of their primary residences (no matter how often they transact) but our mortgage interest is not a deduction.

 

[soccerdad72]

A little OT, but I'm curious. Are real estate profits taxable because your mortgage interest is also tax-deductible? Canadians do not pay capital gains on the sale of their primary residences (no matter how often they transact) but our mortgage interest is not a deduction.

It’s capital gains tax. Tax on the appreciation of an asset, just like stocks or other investments.

 

[ronandannette]

It’s capital gains tax. Tax on the appreciation of an asset, just like stocks or other investments.

I understand that part. The part I'm wondering about is whether or not mortgage interest is tax-deductible. Sorry if my question was unclear.