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Question: What if a Home Sale is being Used to Fund a Downpayment?

Answer: When a home is sold it shows up only on the Net Worth spreadsheet. (Otherwise, the large number would distort the cash flow picture.)

When you look at the Net Worth spreadsheet, you will see an asset shifting from the Real Estate Property column into the Accumulated Savings column.

Also, of course, if there are federal taxes to be paid on the sale, they show up as federal taxes.

Currently, down payments are still showing up as current expenses.

Accordingly, they are first funded from current income, if there is enough.

If there is not enough current income to fund the down payment, and there are proceeds from a real estate property sale in the current year, then a column will appear next to the After-Tax Cash column that says "Home Sale Used."

This is showing at the use of proceeds from the sale in the current year to fund the down payment of the new home in the current year.

If there is not enough current income to fund the down payment, and there are proceeds from a sale in a previous year, then those proceeds will have gone into the Accumulated Savings column in Net Worth in the previous year.

The funding of the down payment will then appear in the after-tax cash flow statement as "Accumulated Savings used."


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