[David]

Can be for both personal or rental properties, I know that taxes can be differed/avoided with both so don’t factor that when calculating but I’ve always factored sales costs as well which may be too conservative when owning multiple properties.

[Sarah]

I don’t include primary residence at all. I have to live somewhere.

[Aaron]

That’s not part of the net worth calculation. If a watch is worth 25k at auction you don’t subtract auction fees from the purchase value when stating the value of the watch.

If you want to make a financial decision about selling a property, then I would include it as well as any tax implications.

But those aren’t typical parts of the net worth calculation.

[Sandra]

Net worth, no. But in my “sell the house” retirement scenario, in which that home equity becomes part of my liquid assets, I count equity minus sales costs minus taxes on gain over $250k, obviously all estimates. I live in SoCal so even more tax $$.

[Ray]

Taxes and sales costs are Expenses, so do not figure in.

Estimated home value goes to the asset side of the equation. Mortgage balance goes to the liabilities side of the equation. Total Assets – Total Liabilities = Net Worth. No need to over-complicate it.

[Author]

Posts