Yes. In the US at least, the difference between what you sell a home for and what you paid for it originally is taxed. The amount you originally paid for it is the starting "basis". As you make improvements to the home, the cost of those improvements is added to the basis. When you sell the home, this revised basis is subtracted from the selling price. Example: In 2000, you buy the home for $100,000 In 2001, you have the driveway paved for $5,000. New basis for the house is $105,000. In 2009, you sell the house for $150,000. Taxes are due on $150,000-105,000 = $45,000. Expenses that do not increase the value of the real estate are not counted. For example, purchasing a new coffeepot has not impact. This is simply an accounting that must be done continually when you own a home. It has no impact on your income or your expenses (until you sell the home). To track it in MoneyWell, there would need to be something called basis, and a checkbox on each transaction that says "Add to basis." Probably would reflect in a report somewhere. Dan
On Dec 31 2008, 10:19 am, Kevin Hoctor <[email protected]> wrote: > On Dec 30, 2008, at 2:53 PM, Dan wrote: > > > I've been using an Excel-based system I developed over several years > > and will happily change to MoneyWell as soon as I get it loaded > > properly. One thing I found very useful in my system was to track > > adjustment to the basis of the house. This impacts no bucket and no > > account, but is needed for tax purposes. Perhaps that is something > > that could be added some day. > > Hi Dan, > > I'm sorry but I'm not sure what you mean. Would you mind explaining > this concept a bit more? > > Peace, > > Kevin Hoctor > [email protected] > No Thirst Software LLChttp://nothirst.comhttp://kevinhoctor.blogspot.com --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "No Thirst Software User Forum" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/no-thirst-software?hl=en -~----------~----~----~----~------~----~------~--~---
