I have entered primary home and gone to next change window to sell it. I have entered in when to sell with all zeros in another purchase. When I run the report it shows the proper value of the home up to the date of change and shows that value removed from my home value, but the money does not show up anywhere else. No increase in regular assets and a decrease in net worth equal to the sell price.
What am I doing wrong?
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RSS
Double check:
In the Housing report you'll see a net home purchase and expenditure. Assuming you owe less than the house is worth, this will be a negative number to indicate how much money you netted on the sale.
Then look in the Regular Assets sheet on that year of sale, and you should see there a positive number for this amount in the saving column. That is, the proceeds for that sale went into regular assets.
If it's not looking that way, make sure that the year of sale is sticking once you indicate that year in the first home change panel.
Remember, it takes out the sales commission and you may pay taxes on the gain (or maybe not). But the housing report will show a number in parenthesis if you gained.
those are some things to check.
Dan
Hi Dan,
The Primary Home input screen asks for Original Purchase Price. If the basis for a pre-1997 property is different, should this be entered instead? The Guide doesn't address this.
Thanks,
David
Hi Dave:
I may not understand your question. The Primary Home (current home tab) asks for current value and the purchase price. Those are just what they mean. The amount you believe it is worth now and the amount you paid for it.
Quote: If the basis for a pre-1997 property is different, should this be entered instead?
Maybe you could explain what you mean there. Different than? We are in the Primary home screen right?
Dan
Hi Dan,
The $250K/$500K exclusion on the taxable gain from the sale of a personal residence came into law on May 6th 1997. Prior to that, people would 'trade up' and defer the gain on prior sales. The deferred gain reduces the basis in the property, i.e. basis = purchase price less deferred gain.
In the event you do have a deferred gain, i.e. a tax liability at LTCG rate, where is the best place to put it? I would have thought that it is best to adjust the purchase price on the Primary Home input screen since the liability is only realized on the eventual sale of the home. Doing so would allow ESPlanner to correctly work out the taxes due should the exclusion be exceeded.
David
Oh, I see. Well, your strategy sounds right to me: enter the proper basis so that ESPlanner is told how much is taxable gain under current law.
But Dick Munroe, one of the engineers, will see our exchange, know for sure, and respond here.
Dan