Recording Additions and Improvements to existing property requires a slightly different approach to entering other new asset acquisitions. As the property exists and its value is being changed, property additions and improvements are treated as Edits to the existing property rather than additions.
To begin, you need to display the Assets List and locate and click on the Property to be improved.
When adding improvements, always verify whether the improvement should be classified as repair or maintenance, and thus classed as an expense item, or whether it is a capital improvement that can be depreciated and needs to be considered in capital gains/losses calculations.
Mclowd™displays the Property Asset screen with details of all previous capital purchases related to this property shown.
Click the ADD ANOTHER ROW button to add a row to enter the addition/improvement.
Enter the Purchase Date, and the CGT date applicable for this new addition (the date the addition came into service as an income-earning asset).
Select the addition/improvement type.
Enter a description of the purchase and the $ amount.
In the From Account field, select the account from which this purchase was made.
Mclowd™adds the addition to the total asset value.
If you have invested in further value-add capital items relating to this property, click ADD ANOTHER ITEM to add additional lines.
Continue until all items have been entered and the total represents the total capital cost of the property.
When all data has been entered correctly, click SAVE ASSET (or SAVE & ADD ANOTHER if you have more Investments to add.)
The new property value is now displayed in the Assets list.
