How to model a Downsizer Contribution

When modelling a Downsizer Contribution in Xtools+, some things to watch for are as follows:

• Enter both properties into ‘Input -> Individual -> Assets -> Property’, noting the following:
  • ‘Disposal Date’ of existing Property and ‘Purchase Date’ of new Property are the same date
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  • Navigate across to ‘Income Support Exempt Home’ and update to reflect existing property til a certain time then the new property continuing forward.
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  • Then also check tab ‘CGT Exempt Home’ to ensure the same reporting as ‘Income Support Exempt Home’
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• We then navigate to ‘Input -> Individual -> Super -> Key Info’ and scroll down the bottom of the page. You will see ‘Home Downsizing’, next select the Property being sold from the drop down list, then check the ‘Property Redemption Date’ then update the ‘Contribution Amount’ accordingly:
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• We then navigate to the respective clients Super tables to check the contribution is being applied: ‘Display -> Individual -> Super -> Accumulation Fund -> Client’ (or Partner) and if need be expand the ‘Transaction (SOP)’ row to see the ‘Principal Residence Downsize Contributions’ amount
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• Should you clients have an SMSF, you will see an additional row at the bottom labelled ‘Contribute To’ and allows you to select where to have the funds contributed to, either Accumulation Fund or into the SMSF:
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Published by Joshua Heath