Sale of home

BS1

Hi  When we inherited a parent's home, I created an Account Type, Real Estate and made an entry showing the value of the home under the category of Property.  The home has sold, so I made another enter to reduce the value to zero, again with the category of Property.

However, since the category of property is an expense, it is showing that I spent the amount. It seems the only other category to use would be Transfer. That doesn't show as "Spent".

Is the the correct way to do it?

DannyB

Hi @BS1, interesting question.  If you want to show the proceeds as income in Simplifi, my first guess would be to use Transfer for this transaction.  Transfer from the House asset account to your bank account - create a transfer in the house account to whichever bank account the proceeds from the sell went to.  But I suspect the actual proceeds you received is less than the value of the house in your property account so you would need to account for the difference somehow.  You may be able to do that using the same method described here for entering a paycheck to account for the difference between what you sold for and the net proceeds… if that’s even part of your question.

I’ll  be interested to see other responses to your question. 

BS1

Thank you for your thoughts!  The proceeds came into our account and was automatically designated as income, thus the conundrum.  Right now I have the removal of the value of the home in Real Estate as a one-sided Transfer.  Not pretty, but it made the amounts correct.  8-)