Home Update Valuation of Asset


R

Robert Sharon

In Money 2004, after you originally set up your home purchase price and
date, how can you assign a category for the valuation increase when only
expenses and income are displayed as available? This is not additional
income for the year. It only provides an updated balance for an asset
account.

Please advise. Thank you.
 
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D

Dick Watson

Not all income is "additional income for the year" in the sense of taxable
income--there are some categories that don't associate with tax lines. You
can also leave the category unassigned.
 
R

Robert Sharon

Thanks for your reponse. I realized some categories do not associate with
taxes. However, most all income categories relate to taxes. When I tried
to "update the current value" the popup screen only displays expense and
income categories so I it seemed I had to select one of them.

Now I went into Money to "update the current value" and found I could
override the category displayed and leave it unassigned (which I thought was
not possible before). Thanks for the tip!
 
R

Robert Sharon

One more observation I noticed now. When creating a report, this "update
the current value" increase is reported as Income -Unassigned. Therefore,
it is still displayed as Income on reports even though it is only a
valuation adjustment. Any thoughts on this outcome?
 
D

Dick Watson

My thought, which you will not like, is that this is what it should do, it
will not cause any problems, it accurately reflects a reason for the net
worth increase--i.e., some form of income, and that it is not something to
worry about. The only choice left is to adjust the ending balance of the
asset by adjusting its starting balance.
 
D

Dick Watson

One other workaround came to mind: don't use an asset account at all.
Instead of an asset account, setup an investment account and a security,
"house", no symbol. Buy 1 share of the security to replace setting up the
asset account; get the money there for the buy however you got it there for
the asset account. Add a price history entry for today to set the value of
the 1 share at what you want to value the house at. Adding to the value of
this for things like expensed improvements will be complicated if you use
the 1 share method. There are always complications.
 
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C

Cal Learner

Buy 1 share of the security to replace setting up the
asset account; get the money there for the buy however you got it there for
the asset account. Add a price history entry for today to set the value of
the 1 share at what you want to value the house at. Adding to the value of
this for things like expensed improvements will be complicated if you use
the 1 share method. There are always complications.
I would think you would not adjust for expensed improvements, but
for capital improvements that increase your basis, you could do a
Buy. Set the Total, enter the then-current price, and let Money
compute the amount.

If you want it back to one share again when you are going to update
the price do a 10000 for 10023 (for example if you then hold 1.0023
shares) share split. Now you can track your basis.

Just thinking along...
 
D

Dick Watson

Yes, I guess "expensed" was a poor way to note "those that had some money
transaction recorded in some other account that you want to 'capitalize'
(normally by a Transfer:[name of asset account]) instead of 'expense' right
away." Indeed, I think the split would work. I still think just accepting
the increase in value as "income" and moving on would be easier...
 
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R

Robert Sharon

Thanks for your input to this subject. I think I will just let the
"income" category be used and regard it as a separate value increase
transaction.


Dick Watson said:
Yes, I guess "expensed" was a poor way to note "those that had some money
transaction recorded in some other account that you want to 'capitalize'
(normally by a Transfer:[name of asset account]) instead of 'expense' right
away." Indeed, I think the split would work. I still think just accepting
the increase in value as "income" and moving on would be easier...

Cal Learner said:
I would think you would not adjust for expensed improvements, but
for capital improvements that increase your basis, you could do a
Buy. Set the Total, enter the then-current price, and let Money
compute the amount.

If you want it back to one share again when you are going to update
the price do a 10000 for 10023 (for example if you then hold 1.0023
shares) share split. Now you can track your basis.

Just thinking along...
 

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