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Posted by rembo on July 15, 2006, 4:24 am
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I have just loaded quicken personal plus 2006 (AU version) after not
using quicken for several years. I mainly want to track all my personal
accounts, shares etc. but I also have property assets and related loans
in joint names with my spouse.
I can see how to exclude an asset/liability from net worth reporting in
quicken, but don't know how to include an account pro rata - ie. count
only 50% of an asset account and 50% of a liability account when
reporting on my net worth. Is it possible in quicken? This would also
affect my tax reporting as the relevant tax items have to be split and
included on each of our individual tax returns.
I don't want to have to divide all the amounts in my joint asset and
liability accounts manually to get the correct amounts in my net worth
reports, and I also don't want to track all my wife's accounts and
report on our joint net worth.
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Posted by R. C. White on July 25, 2006, 3:15 pm
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Hi, Ralph.
First, I've been retired for over a dozen years, so be sure to check with
your own CPA, who should be up-to-date on current tax rules and property
ownership rules of the state where you live.
Second, it's MUCH easier to combine multiple separate items than it is to
divide up lump sums.
And, third, the exercise may be pointless or it may not produce the results
you expect and can use.
Where (in the world) do you live? If you are in a community property state,
you may be going to a lot of trouble to get useless answers - at least for
the federal income tax return. Generally, property earned by either spouse
is considered community income and belongs one-half to each spouse from the
moment it is earned - and that's the way it should be shown on returns filed
as Married Filing Separately. For example, if he earns $40,000 and she
earns $100,000, then each filing separately would report $70,000. There are
many other such provisions that most of us find counterintuitive - or even
quirky. Trying to divide up interest paid on a home mortgage, for example,
or dividing medical expenses between the spouses can run into some very
unexpected rules.
Even in a community property state, though, spouses may own property
separately. Such separate property might include assets owned before the
marriage, or property received as gifts or inheritance by one spouse.
Separate property remains separate unless it is converted to community
property, either intentionally (such as by gift to the other spouse) or
unintentionally (such as by being commingled so that it can no longer be
separately identified). Change of form, such as converting stocks to cash
to real estate, does not change the separate character of the property.
Income from separate property may or may not be community property,
depending on the state involved.
In both community property and separate property states, there are other
forms of joint ownership, such as joint tenancy, partnerships, etc. The
effects of each of these would need to be separately determined in each
case.
Given all that, you still might be able to produce what you seem to need,
which is a separate statement of financial condition for each of you, but it
would take some effort - and, preferably, some advance planning. You would
need to create different accounts for each group of assets (and
liabilities), making sure to segregate them by the form of ownership: His,
Hers and Theirs. Then you could create a Net Worth Report that includes all
of His and half of Theirs, excluding all of Hers. If you wanted to produce
separate income statements, you would similarly need to create separate
Categories (in Quicken-speak) along the same line. Or it might be easier to
use Classes to accomplish the same results.
Much of the answer depends on how you plan to use the information generated.
Is all this for tax returns? Or for a divorce? Or to present to a banker
or other lender or investor to support a business proposition?
I know this is not a complete answer to your question, but it should provoke
some further thinking to clarify exactly what you must do to get the answer
you need.
Whoops! I re-read your post and see that you specified the "AU version", so
I assume that you live in Australia. I know NOTHING of Australian laws,
including those about property rights. I probably should just delete my
whole message, but I've already typed it out, so here it is for whatever use
you can make of it.
RC
--
R. C. White, CPA
San Marcos, TX
(No longer licensed to practice)
rc@grandecom.net
Microsoft Windows MVP
(Currently running Windows Mail 7.0 in Vista x64 build 5472)
>I have just loaded quicken personal plus 2006 (AU version) after not
> using quicken for several years. I mainly want to track all my personal
> accounts, shares etc. but I also have property assets and related loans
> in joint names with my spouse.
>
> I can see how to exclude an asset/liability from net worth reporting in
> quicken, but don't know how to include an account pro rata - ie. count
> only 50% of an asset account and 50% of a liability account when
> reporting on my net worth. Is it possible in quicken? This would also
> affect my tax reporting as the relevant tax items have to be split and
> included on each of our individual tax returns.
>
> I don't want to have to divide all the amounts in my joint asset and
> liability accounts manually to get the correct amounts in my net worth
> reports, and I also don't want to track all my wife's accounts and
> report on our joint net worth.
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Posted by P Ruetz on July 27, 2006, 2:36 pm
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> Hi, Ralph.
>
>
> Whoops! I re-read your post and see that you specified the "AU version",
> so I assume that you live in Australia. I know NOTHING of Australian
> laws, including those about property rights. I probably should just
> delete my whole message, but I've already typed it out, so here it is for
> whatever use you can make of it.
>
> RC
> --
> R. C. White, CPA
> San Marcos, TX
> (No longer licensed to practice)
> rc@grandecom.net
> Microsoft Windows MVP
> (Currently running Windows Mail 7.0 in Vista x64 build 5472)
I found it very informative so it was not a waste. Thanks.
Peter
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Posted by Stubby on July 27, 2006, 4:48 pm
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P Ruetz wrote:
> I found it very informative so it was not a waste. Thanks.
>
I second that. --Stubby
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