Originally from ticket #14776.
Hello,
Donald L. the following questions about the Cash Infusions section of the software. Please assist him with his questions.
1. In Cash Infusions for the sale of a home, is the 'tax rate to apply' the value for the actual sale price of the home or the value for investments (e.g. mutual fund) that came from the sale of the home?
2. In cash infusions, he has a couple of rentals and wants to know if the 'Estimated Return after Start' comes from the actual rent increasing from year to year or if it comes from the value of investments that came from the money of these rentals.
Thank you,
Jessica
Customer Support
Torrid Technologies
ANSWERS:
Donald,
To answer your questions:
1. In Cash Infusions for the sale of a home, is the 'tax rate to apply' the value for the actual sale price of the home or the value for investments (e.g. mutual fund) that came from the sale of the home?
--- The tax rate to apply is deducted from the value on that line regardless of what that line is for. In the case of selling a home for $200k then it would add $200k into the plan if you set tax rate to 0% (perhaps because you are of the age where you get the proceeds tax free). If however you set the tax rate to 10% then it would deduct $40k from the $200k and inject $160k into the plan.
2. In cash infusions, he has a couple of rentals and wants to know if the 'Estimated Return after Start' comes from the actual rent increasing from year to year or if it comes from the value of investments that came from the money of these rentals.
--- Yes, return after start applies only to multi-year payments. If you set this to something the payments will increase over time by the rate you specify. In the case of rents, yes this would be like an inflationary increase in your rents every year.
Does this help?
-Tim