Add assets – new property purchase
When entering a new direct property purchase, always choose an asset name that will make it easy to identify the property readily in reports and selection lists.
Fill in the address details, purchase date and CGT date.
Note: The Purchase Date and CGT date must be after your fund Migration Date. If a date prior to Migration Date is entered, Mclowd will show an error in the date field and disallow the entry. Acquisitions prior to Migration Date must be entered via the steps described in Fund Setup: Assets.
Please note that the Purchase Date and CGT date must be entered a second time in the panel at the bottom of the form, along with a description of the property, the cost, and the bank or loan account from which the payment was made.
Note that above the SAVE buttons, there is a button labelled ADD ANOTHER ROW.
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 and select the property to enter details of expenditure that added capital value. You can continue adding lines until the Total displayed equals the final capital cost of the property.
You purchase a commercial property being a shop that is to be leased to a tenant who will operate a take-away food outlet. Having made an agreement with the prospective tenant prior to your purchase, you enter into a contract to have a new fit-out completed. The cost of the acquisition is met through arranging a property loan.
You might enter your initial purchase like this:
The CGT date, in this instance, is prior to the Purchase Date because the CGT date is the date the contract became unconditional. The Trustees elected to nominate the date of payment as the Purchase Date.
You can continue adding rows until you have entered all capital costs associated with the initial purchase.
Although they made all purchases at the same time, the Trustees have chosen to itemise for clarity, and to ensure depreciation can be applied, if necessary, at different rates. They may be able to write off some fittings immediately.
You can continue to add rows until all improvements have been itemised and the total reflects the total cost of the acquisition. Mclowd will calculate the total and display it.