Recurring expenses such as annual property taxes are not generally deducted from net worth, but debt, such as car loans, mortgages, etc generally are. The reason being that if you extinguish the debt, your assets are reduced by the debt amount, but then the payments go away. But recurring expenses never go away, so they are just that - expenses, not assets or liabilities.
Yeah...I just mean one time expenses in order to liquidate an asset. (Fees and sales tax on sale of real estate, estimating say15% tax on taxable account assets assuming that will have to be paid when withdrawn, maybe broker fee to sell business in order to cash out, etc.
I don't discount anything. I estimate that my tax bill this year will be approximately zero including self employment taxes on DW's business earnings.