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23 Jun, 2020 05:26 PM


Regarding this article: https://infinitekind.tenderapp.com/kb/investment-accounts/represent-property-as-investment

Wouldn't it make more sense to simply have a History option (or Current Value) in the Assets as we have in securities? Because trying to solve everything through yet another investing account, makes it hard to make sense of the overall structure of one's assets. Also if you still have a mortgage and are paying principle and interests, and property tax and all that, shouldn't you be able to input it all to your asset (or liability, if you want to see it as such)?


  1. 1 Posted by dwg on 23 Jun, 2020 09:37 PM

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    I'm a fellow user.

    I see that article as nothing more than a suggested approach. It may suit it may not.

    You can always use an accounting approach and set up an asset account and pass revaluation entries through this account to revalue the asset. The loan account would remain separate as it reflects a specific liability and your equity is a calculated value between the asset and Liability accounts. An income and expense report with just these two accounts select should give you this.

    Property taxes should not effect the asset account as they are an expense item.

    The suggested approach seems to me to just offer a simplified approach to tracking the value and for many that could prove to be sufficient.

  2. 2 Posted by JTF on 23 Jun, 2020 10:24 PM

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    Thank you for taking the time to reply.

    But do you know if there a way in the asset account to keep track of the current value or appreciation/depreciation separate from the acquisition value? That's the part I can't find. Do I have to change the initial value? That way I'd lose track of the potential gains.

    Thanks once again!

  3. 3 Posted by sprimost on 23 Jun, 2020 10:46 PM

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    From: sprimost (not IK support)

    There is a bit of an issue if you use cost accounting as a principle,
    when revaluing assets. There is no firm basis for the calculation, and
    you may over-inflate the value of the asset.

    But if you want to do it, I can tell you how I have done it, in the
    past, mainly because one could sell an asset for more than its cost. Or,
    in recasting the mortgage, you may realize a increase in equity
    (compliments of your friendly bank thinking the property is worth more).

    I set up an equity sub-account to the asset account for the home. It has
    other sub-accounts for capital improvements, mortgage (loan), and
    closing costs. Other than the equity sub-account, the other accounts are
    affected by purchase, or expenses that are capitalized on a cash-basis.
    For equity (increase or decrease), I use a contra account (of a few
    contra-accounts relating to this asset, to a) increase (decrease) the
    "stated value" of the asset by an increase in "equity" (for the net
    worth statement and (2) the contra account tells me how much, and when I
    increased the "equity". I never increase the value of the asset account
    directly because, as you stated, I may lose track of the initial value.

    Just a thought... your mileage may vary.


  4. 4 Posted by dwg on 23 Jun, 2020 11:27 PM

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    I believe what scp is talking about is using Moneydance's ability to have child and parent accounts.

    A house account would be setup as a parent, then accounts for cost price, revaluations etc are setup as sub accounts of the parent House account. thus the rolled up house account shows the current value and the sub accounts the component parts.

  5. 5 Posted by JTF on 24 Jun, 2020 12:11 AM

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    Thank you very much, both of you. I'll give it some thought.

  6. 6 Posted by rm2426 on 03 Jul, 2020 01:37 PM

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    Unless needed for a report, just put a note in description........”FMV @mm/day/year=$xxx,xxx.xx” then add for more dates?
    Just a thought. User rm2426

  7. System closed this discussion on 02 Oct, 2020 01:40 PM.

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