Net Proceeds

Net Proceeds means:
the amount (usually cash) received from the sale or disposition of property, from a loan, or from the sale or issuance of securities, after deduction of all costs incurred in the transaction have been deducted.

Example of Net Proceeds:

Learn more about tax examples, explanations and calculations here.

A principal residence is sold for $200,000. Brokerage commissions and other transaction costs are $14,000; the $106,000 mortgage balance is retired, leaving $80,000 net proceeds.

For purposes of tax-free reinvestment in a home, any gain is deferred if the replacement home costs $186,000 or more.