Newbie to PRC Gold here - When entering "cost basis", the cell note and the associated manual section says to enter the purchase price (personal and investment RE).
I'm wondering where improvements that were performed prior to the start of the plan are accounted for?
- Instead of entering the PP, should I enter the adjusted basis (for 27.5 year improvements already performed)?
- OR enter the improvements in the "First" and "Second" improvement cells, even though they improvement year will be earlier than the start of the plan?
or something else...
It seems to me I could enter the adjusted basis in the cost basis cell - - which would preserve the two available Improvement entries for future plans - - but I don't yet have experience with how PRC is actually using these entries.
@mikemcd001 I think you can do it either way - include the past improvements with the "cost basis" or define them separately on the improvements tab, just don't do both. It seems some verbiage has been added on the improvements tab. Oh wait, you're talking about the Excel versions, so hold that thought. My comments are based on Online, which I highly recommend you switch to. There are considerable improvements across the board in the online version.
@hines202 Thank you!
You're right: I have the Excel version because it was a slightly less expensive commitment before going "all in". If this works for me, I'll upgrade.
After a bit of thinking, I'll try to use the First and Second Improvement section. Adjusting my PP (basis) up to account for a major improvement(s) would probably only accrue 80% (or whatever I've entered as the property's improvement ratio) of the depreciation attributable to the improvement cost.
The real problem (from my admittedly green perspective) is that there are only 3 depreciation entries per property.
Do you know if the online version allows for more than 2 additional improvements?
@mikemcd001 Online removed many of those limits, such as only being allowed three expense phases. Most people need four - currently working, early go-go retired, entering age 70s slow-go, entering age 80s no-go. I don't see any limit on improvements.
