We are planning to renovate our rental property. I entered $75,000 for 2027 in the Improvements tab for the property. But where can I see this expense in actual cash flows?
When I look on the Cash Flow tab, it adjusts the basis upwards, but the expenses stay the same for the year. Where can I see that $75,000 expenditure?
On the Personal Property page, Cash Flow and Cash Flow by Property tabs, the cost is in the Total Annual Expense in the year you made the improvement.
Click on the amount in the Total Annual Expense for that year and you should see the improvement amount listed as "Improvements" in the popup Metric MRI.
Under Review > Tabular Projections > Expenses> Expense Statement, the amount of the improvement is included in the Personal Property column.
Under Review > Tabular Projections > Expenses> Specified Expense Details > Personal Property, the amount of the improvement is included in the Expenses for Personal Property column.
On the Cash Flow Statement, it is included in Total Expenses along with all your other expenses.
@cstone I am still having an issue with this.
I am entering a $50,000 improvement expense in Build > Expenses > Rental Property > Rental Property Improvements for year 2027.
But when I go to Review > Tabular Projections > Expenses > Rental Property, there is no change in the Expenses for Rental Property column.
The expense also does not show up in Build > Expenses > Rental Property > Cash Flow by Property > Total Annual Expense MRI.
I'm attaching screen shots for the three paths detailed above. Can you take a look and let me know where I am going amiss? Thank you, Joe
Thank you for reporting this issue and I confirm it is a bug. The cost of the rental property improvement does adjust the property basis and depreciation, but the cash outlay of the improvement is not including in the Total Annual Expense metric (it is included for improvements to personal properties). Here are the changes I have completed and will be in the next release:
- Add the improvement cost to to Total Annual Expense metric.
- Show the improvement cost in the Total Annual Expense Metric MRI for rental properties.
- For both personal properties and rental properties, I have also added a column on the Cash Flow Summary and Cash Flow by Property to show the cost of the improvements.
In the meantime, I have added an alert about this on the Rental Property page and the Alerts page.
I will update this message or add a new reply when the fix is released. Thank you again for letting me know.
Regards,
Charlie Stone, Pralana
@cstone, thank you! I'm glad it wasn't just me making an entry error! This fix will be very helpful in mapping out our scenario, I appreciate it.
