Add assets – direct property

Purchases of Direct Property imply special requirements in terms of recording transactions.

Select Direct Property as the Asset type:

• to record purchases of houses, units, land or commercial buildings,
• or to record extensions or renovations or other capital value adds to existing Direct Property Holdings

Property purchases may involve transactions costs (e.g. borrowing costs) in addition to the cost of the asset. You should verify with a qualified tax adviser which associated costs should be capitalised, and which may be treated as expenses.

All capitalised costs incurred at time of purchase should be recorded along with the purchase. Mclowd provides a facility to itemise capital costs by adding rows to the Property form as required. In each row, you can set specific purchase and CGT dates for capital purchases, describe the purchase, and itemise the cost.

Improvements, additions, fitting and fixtures, etc. added after the initial purchase can be recorded at any future time by following the instructions in the section Additions and Improvements.

Note: 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.

If you extended or improved a property you purchased, or made other cost base adjustments at the time of purchase, you should first enter the property details, then  ADD ANOTHER ITEM   to enter details of expenditure that added capital value.

You can continue adding rows until the Total displayed equals the final capital cost of the property.