Modeling The Sale of a Home or Real Estate
Where do I model the sale of a home in the future?
You should model this in the Additional Cash Inflows section. If any portion of the sale is taxable make you separate out the cost basis (non-taxable portion) and the taxable portion as you see in the screenshot below. Note how the Growth Rate of the Home Sale cash inflow is set to 0%. This is because it is easier to separate out the taxable vs. non-taxable portion if you project out the future value of the sale rather than using the sale price in today's dollars.
