investment property / rental property help
quest
started looking into this and wonder how people have done it? The online
help hints at using categories or classifications. Which one works better?
Can someone give me ahead start and share their experiences.
I would like to be able to track the income from the rental and all related
expenses that I can write off against that income. As well as track
expenses that would add to the dwelling so I can depreciate them overtime.
Can Money 2002 Deluxe tack all this or should I consider the Money Business
Version 2003 (when its released)? Of course I need to keep track of the
asset of the property as well as the mortgage loan for it.
TIA!!
Chief
think it is different if you have just 1 rental property
or multiple properties. For me I have a single property,
so I just made an expense category titled "Rental
Property" with subcategories for each item, repairs,
property tax, mortgage interest, etc. This works well
because I can assign a tax category/form to each one of
the sub-catergories and it tracks the taxes perfectly
(side note - Schedule E does not seem to appear in the
Tax Estimator, not a big deal for me as the property is
generall a tax wash, but it does annoy me that it is not
take into account.)
On the income side, I have a category titled "Rental
Income" with subcategories for rent, and water. Again,
this is tied to the schedule e when you set up the
categories, so it track the income for tax purposes.
You can create a report to show just rental income and
expense if you want to track it continuously.
As for the loan, I have it set up like a normal mortgage
with an asset account and everything. The trick is when
it asks you where you want to track the mortgage
interest, you chose the "Rental Property: Mortgage
Interest" category that I mentioned earlier.
All bets are off if you have multiple properties, but I
think that using classifications may help in this area.
You may just do the same as above, but identify the
location of each property with a classification...or
something like that.
Good luck.
Chief
>.
>
quest
are you able to depreciate your rental in Money? Maybe this can be modeled
by creating a fictitious expense every year (dwelling value divided by 27.5
years)? Although, when I sell the property I am not sure how I model the
effects of depreciation? If Schedule E is not taken into account in the Tax
Estimator it sounds like the Tax Estimator will not be accurate? Did I
understand that correctly?
Thanks again, the information you provided was exactly what I was hoping
for!
"Chief" <brochief...@attbi.com> wrote in message
news:1811f01c22f38$3971f980$2ae2...@hosting.microsoft.com...
Chief
something. I have been using TurboTax for years and guess
I just thought that we were I was taking care of it. I
better do my research!!!
2) As for accuracy of the tax estimator, that is
correct,it won't be accurate in an of itself. However,
you can manually add in extra income on one of the lines
and that should bring it pretty darn close, although it
annoys me since the entire idea of this entire things was
automation.
If you come up with anything, please email me directly at
brochief...@attbi.com as I don't know how often I
will get back to these boards.
Thanks,
Chief
>.
>
