Hello. I understand how to model selling a home some time in the future but it is not clear to me where/how I would then buy a small home or rent? Where would I enter these items?
I would like to model selling current home in 15 years and purchase a smaller/cheaper home.
I would like to model selling current home in 15 years and renting.
thanks.
You'd model the purchase of a home in the future on the same page. Just enter the year of the planned acquisition, the purchase price in terms of today's dollars, and so on. You can model a mortgage or model a cash purchase. If you sell your current home and buy the new home in the same year, PRC will calculate the net expenses (effectively use the proceeds from the sale to cover the cost of the purchase) while also calculating any capital gains that have to be reported on the sale.
You can also model renting on this same page. You'd enter the year of the planned acquisition, but the purchase-related expenses would be zero. You could enter the annual rent, insurance and utilities in the Annual Operating Costs table.
Ha. That was too simple. Thanks for the quick reply.
Does PRC Gold properly exclude the first $500,000 in capital gain from a home sale? It appears to me that it is treating any home sale gain just like any stock/mutual fund gain... rather than allowing the exclusion of the first $500K.
@engelhardt558 John, Yes, PRC should be excluding the first $500K. If you'll email me an export file I'll be happy to take a look at your specific case and try to identify what's going on. Stuart.
Curious to know how this resolved...
Reviving this old post for consistency. It appears to me that taxes are being calculated on the gains from my primary home sale despite being well below the threshold. See attached image. Unless there is a suggestion of what I might be missing, I'll send in my file.
@backroads4me Are you sure you marked it as your primary home on the expenses->property page in that drop-down? That screen shot says reportable but that might not mean taxable. I don't have PRC fired up right now to check this, but have a look at your taxes for that year of sale and see if you see a big spike. As you know on the primary residence you don't get taxed until you exceed $250k over your basis (cost paid plus improvements, etc) if filing single, or $500k if married/joint.
@hines202 I've been in contact with Stewart and he has found the issue and will be releasing a fix in the next day or two.
Thanks,
New user here. I'm still seeing this issue (no exemption on primary residence sale) in the latest version 2023.3.4 (downloaded this past week). Is there an anticipated release date for the fix?
@mcpgaccount I just checked and am not seeing an issue in the test case I used (the issue described in earlier posts in this thread was fixed). If you would please email me (mail@pralanaconsulting.com) an export file and I'll be happy to investigate.
Thanks, Stuart
So on review of the export file, Stuart found the "Date of Acquisition" for the primary home was missing from the data set. Oddly, it showed on my screen in the "Expenses" set-up. Even manually re-typing and saving it did not correct itself.
I started with a fresh spreadsheet and imported the same Export file, added the missing date, and all is good. It appears somehow that field was corrupted in my original model. I did recall having some issues where data from Scenario 1 was not populating into Scenario 2 or 3 when I'd do a "copy from" and I had to manually type it in the other 2 scenarios, so that also points to my original inputs being corrupted somehow.
All good now.
Michelle
