|Does landlord max keep up with the cost basis tracking of each property? I am just beginning with a couple of residential rental properties. I have done extensive repairs to one which will not provide any immediate tax relief but will however pay off in the future if the cost basis tracking is properly maintained.|
Jan 31 2012, 09:49 PM
The software doesn't offer this, nor as far as we know do any property managements software solutions priced anywhere near our price range.
To be able to correctly calculate this is very complex and expensive, which is why you generally only see it offered in much more expensive solutions, generally starting in the thousands of dollars. It requires knowledge of your property values, adding appreciation/depreciation values, incorporating renovations versus repairs, etc. Not only that, but these numbers can be different for different local areas (not to mention the legal options). We've seen one or two property management solution near our price range try, but each time they've been quite off in their calculations. This is why we generally recommend you use a local accountant for these types calculations due to all the possible interpretations. They will know exactly how to make these calculations. Not only that, but it's also been our experience that different accountants can come up with different results depending on how aggressive they are being in their calculations and interpretations.
LandlordMax Software Inc.
2 days, 16 hours since original post