Get Net Proceeds Worksheet: Sales Price: $ Seller's ... - Jprlaw

In a short sale, there are no proceeds to the seller. Lenders allow these costs to be deducted from the proceeds of the sale and, in fact, collect the "net" proceeds - what is left afterwards.

You calculate your net proceeds by subtracting the costs of selling your home and your remaining mortgage balance from the sale price. For example, if your sale price is $1,000,000, your remaining mortgage balance is $350,000, and the total closing costs are $60,000, then your net proceeds would be $590,000.

How much is capital gains tax? If you sell your home for a net gain of more than $500,000 (couples filing jointly) or $250,000 (singles), the gain in excess of the threshold is subject to capital gains tax.

The money a home seller keeps after all fees, commissions, closing costs and other expenses have been paid is referred to as net proceeds.

You must subtract mortgage payoff, prep costs, agent commission, closing costs, and all other fees from the sale price to get your net proceeds. Then, you have to do the extra math of subtracting the home's purchase price and any upgrades or improvements done to the home in order to get your true profit.

The seller's net sheet is calculated by taking the home sale price or an offer and then subtracting any encumbrances on the property (outstanding mortgage being the most common), closing costs and miscellaneous fees.

Proceeds are the entire amount received in income. Profits are only the amount received over the cost of buying the goods sold. The term proceeds are less often used in business or finance, with income or revenue preferred. The term profits is a common business term.

The simplest way to calculate net proceeds is to deduct all of the seller's closing costs, expenses and the mortgage balance from the final sale price of the home.