How to properly ent...
 
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How to properly enter an automobile in assets?  

 

Motogopher
(@motogopher)
Active MemberCustomer
Joined: 4 weeks ago
Posts: 11
Topic starter  

First, it is really nice to see that the math will give you credit for the sale of an automobile in future years. Nice touch. I noticed that when I entered my car as having a year of acquisition of 2018, that in the Tabular Projections sheet, I end up with Reportable Capital Gains on the car. I know it's the car as I can play with the numbers on the car and it changes the reportable capital gains. I have the car entered as an Asset Type of Other. Pretty sure a car doesn't have capital gains... So, how should this be entered?


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Stuart Matthews
(@smatthews51)
MemberAdmin
Joined: 5 months ago
Posts: 94
 

There are indeed reportable long term capital gains when you sell a car if the sale price exceeds its cost basis (i.e., what you paid for it plus any improvements made along the way). With that said, paying capital gains taxes on any car other than a collectable car seems unusual. So, one field you need to pay particular attention to is Real Appreciation Rate. For a normal car, this should be a negative number and that will ensure that the car sells for less than you paid for it and there will be no capital gains reported when it's sold.


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Motogopher
(@motogopher)
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Joined: 4 weeks ago
Posts: 11
Topic starter  

@smatthews51 See attached screenshot. The M2 has a negative appreciation and current value of approximately half that. You can also see that it shows up with a capital gains tax.


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Stuart Matthews
(@smatthews51)
MemberAdmin
Joined: 5 months ago
Posts: 94
 

I see the reportable capital gains in the year in which the car is sold but have replicated that exact case on my system and don't get the same result (reportable capital gains are zero in my test). There may be some other source of those gains. The screenshot you attached to your post is from the tabular projections page. Are you seeing the same value on the Summary table at the bottom of the Property page? If so, are there other entries in the property table other than the house and the car? If so, please include a screenshot of those. Thanks!


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Motogopher
(@motogopher)
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Joined: 4 weeks ago
Posts: 11
Topic starter  

@smatthews51 Aha! Sorry for the trouble. It was my other vehicle which, for some strange reason, I had decided not to enter a cost basis for. I guess it is so old I didn't bother. Oops. Thank you!


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