How does one account for the various improvements to a house (sewer betterment, new driveway, etc)? And, how do I organize things so that I can put in the estimated current selling price and have my net worth updated to reflect this change? Finally, how can I automatically estimate the Federal and State capital gains tax if I sell the place? TIA
I have two asset accounts for this purpose. (I'm not addressing how to estimate capital gains tax.)
The first account is an asset account for the home itself. I do an update balance to increase or decrease the home's value. This account is linked to my mortgage account.
The second account is an asset account where I input (or transfer) transactions related to improvements that increase the value of the home. Because I account for market fluctuation in the home asset account itself, I've configured Quicken to *not* count the value of the home improvements in my net worth.
Hope this helps,
Margaret
I have an asset account called "House" which has the purchase price of the house, plus transfers from bank accounts (checkbook/credit card) for major improvements (paved driveway, initial landscaping, alarm system, etc). Minor improvements that are still considered cost basis improvements (upgraded plumbing fixtures, new tile, etc) could also be handled as transfers to the house account, but I just leave them in the bank account and use the category "Home Imp".
Adjustments to the value of the house can be managed by creating a positive/negative transaction in the House asset account.
You do realize that for most individuals, there are no capital gains taxes on a personal residence sale? If you fall into the category where there are taxes due, you most likely wouldn't be using Quicken to do your finances.
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