Income in property portfolio

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From: Steve Mcleod


Using PIA i have an investment analysis on screen,I then go to investor/create portfolio,I put this and one other property in a property portfolio,hit OK,then it comes up current taxable and net income.We now have taxable income after expenses/deductions,hit OK,then comes up combined portfolio investment analysis.IF we go to investor/tax benefits,and it shows present taxable income as the amount after the initial investment analysis .How can I show work income as present taxable income and then be able to see combined effects of portfolio on tax.This seems long winded,I hope this makes sense,Thankyou.

steve

 

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Reply: 1
From: Webmaster (Somersoft)


Hi Steve,

If it makes you feel any better, it is the portfolio analysis that is one of the more complex aspects of property investment analysis,

The simple answer to your question is that when you create your portfolio, you should include just the one investment property that you currently own. Then when you go to look at the tax benefits, it will show what they are if you were to purchase the second property, given that the taxable income had already been updated for the first.

It is relatively straight forward if you always keep in mind that the property file that is open should be the prospective property that you are evaluating and that when you create a portfolio, it should consist of the properties that you currently own. The first thing that PIA will do is to use the info in the files to update your current taxable income (and display it) and then give you a collated report showing the existing properties and (optionally) the prospective property.

When you return to the investment analysis spreadsheet, the taxable income will have been updated to reflect the income and deductions on your current properties.

Hope this helps, but you should also have a read of the Portfolio Analysis chapter under Special Topics in the Help menu and Users Guide.