Lifestyle Assets Details

1. Under Amount, enter the property taxes owed.
2. Under Frequency, select how often property taxes are to be paid.
   • If property taxes are paid monthly, the payments begin in the month the asset is purchased and end the last month before the asset is sold or the month that the owner dies.
   • If property taxes are paid annually, the payments begin on the date the asset is purchased and future payments are made on the anniversary date.
   • Should the asset be sold or the asset’s owner die, the property taxes will be prorated.
3. To index the property taxes to the rate of return, select the Infl +/- Add’l check box and then enter a percentage.
4. If you want to indicate that the property taxes are tax deductible, select Tax Deductible.

1. Select the Sell Asset check box.
2. Enter the Sale Date.
   • Clicking the Event Calendar shows possible events and event types that can be used to define the date. For some event types, Offset fields are available to add or subtract years and months.
3. Upon the sale date, after-tax proceeds of the sale can be directed to cash flow, an existing non-qualified account or annuity, or a new non-qualified account. Select the desired option from the Direct After Tax Proceeds To menu.
4. NaviPlan automatically calculates the sale price. The projected value and buying power of the asset appears as of the sale date.
   
5. When you are satisfied with these options, click OK.

• Identifies the asset as community property.
• Most property acquired by a married couple residing in a community property state is considered to be owned equally by both parties.
• This check box is not available if the client’s or co-client’s tax filing status is single.

Direct After Tax Proceeds To

• Where the proceeds of the sale of the lifestyle asset should be allocated to. The after-tax proceeds of the sale can be directed to any of the following:
  • Cash Flow – The proceeds can be directed to the clients’ cash flow.
  • <existing non-qualified account> – The proceeds can be directed to any non-qualified account or annuity that currently exists in the plan.
  • New Non-Qualified – A new non-qualified account, once selected, is created and named Proceeds from <asset name>. The proceeds are directed to this new asset.
    Note: The Proceeds from <asset name> account will not be automatically deleted if you later decide to direct the proceeds somewhere else.

Account Details

• Open the Account Details dialog box for <existing non-qualified account> or for the new non-qualified account (whichever is applicable).

Exclusion Amount

Amount of capital gains that will be excluded from tax if Residence or Second Residence is selected from the Type menu.