I am doing a calculation for a client that involves the sale of some
property. I am not sure how to enter the data in the "cash infusion"
section. Please call or let me know. Thanks.
Randy
Yes use theCash Infusions button. Enter current property value and a growth factor if it is increasing in value. You have to estimate the Age the client will be when he sells the property. For example, he sells when he retires at age 65. In which case Start Age is 65. Duration would be 1 for one time payment sale. If it was some multi-year sale then you might have a duration greater than 1 but then the value would be the amount of the broken up payments and not the total value.
Also if it is encumbered by a mortgage, our software will not amortize the mortgage and tell you how much is still owed in the year of sale. HOWEVER, if you can estimate the mortgage in that year, list it on Special Expenses for the exact same year and duration of 1... this will model the mortgage payoff and will offset against the full value of the property's sale.