How do I sell Real Estate and payoff mortgage?

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I can't get this to work or find instructions on how to do it. I want to examine the scenario of selling a property (not my home) in 2016, use the proceeds to payoff the mortgage concurrently, and use the remaining proceeds to pay down a mortgage on a second property. I enter 2016 in item 8 of the real estate general form and the program does sell the property that year. However, I can't seem to get it to payoff the mortgage concurrently with the sales. If I make no change to the mortgage tab, the program appears to continue paying the mortgage for the remaining 22 years. However, when I shorten the mortgage remaining years to one or two, it forces me to increase the monthly payment to a large monthly amount that will cover the remaining mortgage balance. These large payments seem to cause in the program to withdraw funds from cash and/or retirement (hard to tell exactly) which distorts the scenario. I have yet to reach the step of attempting to use funds remaining to pay down another mortgage. This is all probably straight forward but I can't find guidance on the procedures to follow. I would appreciate if you could point me to those steps if they exist already or provide guidance. Many Thanks

Comments

dan royer's picture

If I follow you, I think you just set up a case where there is a sale of primary home to a no-payment home with only taxes and insurance for that home. Then create a special expenditure for that same year with proper tax consequences to account for the final lump sum mortgage payment.

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