Taxes on gains from the sale of a home
The Lifetime Planner allows you to include the future sale of a home in your retirement planning. When you enter the expected sale in the Asset Accounts or Planned Assets window, Quicken calculates your potential gain and estimates the taxes due based on your inputs.
How gains are calculated
Quicken calculates the realized gain as the difference between the sale price of your home and its cost basis.
Realized gain: The profit from selling your home, calculated as the sale price minus the cost basis.
Cost basis: The original purchase price of your home, plus the cost of eligible improvements. Examples of improvements include renovations, new roofs, or additions—not routine maintenance.
Tax rate: The percentage applied to the realized gain to estimate how much tax you’ll owe. You specify this rate in the Lifetime Planner settings for the property.
The Lifetime Planner uses these values to estimate the tax on the sale. This amount is then reflected in your long-term cash flow and retirement projections.
Important notes
Quicken does not automatically apply IRS capital gains exclusions for the sale of a primary residence—such as the $250,000 (single) or $500,000 (married filing jointly) exemption. If you qualify for this exclusion, you can manually reduce the gain or adjust the tax rate to reflect your expected tax liability.
Note for our Canadian Customers
The following terms will be different in the Canadian releases of Quicken.
Canada: "Cheque" / United States: "Check"
Canada: "Colour" / United States: "Color"
Canada: "Centre" / United States: "Center"
Canada: "Realise" / United States: "Realize"
Canada: "Behaviour" / United States: "Behavior"
Canada: "Analyse" / United States: "Analyze"