Tracking an asset, increasing value


T

Tod DeBie

My home has recently increased in value. When entering the increased value
into the asset account, what is the most appropriate "From" and "Category"
for this value increase?

Tod
 
Ad

Advertisements

T

Tod DeBie

The problem is that, unless I am missing something, I need to place this in
an income category, but it is not income. It will show up as income, but it
is merely an asset increasing in value. It seems like there should be a way
to increase the value of an asset without having to show it as income (yes I
know I can just exclude the category from the reports, but that seems like a
bit of a hack job to me).

Tod
 
D

Dick Watson

In the sense that it makes you richer, it certainly is income. It may be
unearned income or unrealized income. You can create your own income
category, if you like. You can also leave the category blank, if it makes
you feel better about it.
 
T

Tod DeBie

The problem is that it is unrealized income, but it will be shown as
realized income (which may go away at a future date, which will then be
shown as a loss). The problem will reappear if I actually realize the
income at some future date, because I will then be realizing the income, but
money will only show it as a transfer. This seems like a poor solution for
what must be a very common use case.

Tod
 
D

Dick Watson

Where are you worried about it showing up as realized income and what makes
it appear as "realized" to you? In some report somewhere? In tax data? The
answer as to it showing up in a report is so what? You KNOW it isn't
realized and where does Money make any distinction between realized and
unrealized income? The answer as to the latter is to create a category that
you set to NOT show up on tax reports.

I don't think that many users actually try to use Money to account for the
tax basis of assets via asset accounts--or if they do, they don't go to
great lengths to track the current asset value for accurate net worth
calculations along the way. Many things like this are just easier in Excel
anyway.

BTW, there's NOTHING preventing you from putting just ONE transaction in the
asset accounts to adjust each one for current value and then deleting that
at some point in the future to get back to basis. Then the transfer of the
asset account value, say into a real estate sale transaction, would just be
basis and you could enter another element into that split to realize the
income of the gain in value. You could change the one "value adjustment"
transaction over time to get accurate net worth accounting and still get
back to basis at the end game just by deleting or voiding the "value
adjustment" transaction.
 
T

Tod DeBie

I know how to deal with it. The limitations can be worked around. It is
just odd that Microsoft has been investing all sorts of effort in upgrading
Money every year, but does not have a built in way to deal with a very
common situation. It would be easy for them to build in some very nice
functionality around this.

Tod
 
Ad

Advertisements

D

Dick Watson

Based on how often this hasn't come up, I think you overestimate how common
it is for Money users to mess with this. But I certainly agree there are
many things that could be added to Money that haven't been.
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top