Hi Phil (or anyone else that is an Investment Detective whiz),
IWhilst I think Investment Detective overall is a great product, I am still a little confused about a couple of sections.
Cash payments and cash receipts is straight forward however I don’t understand the section underneath re principal payments and depreciation. At this stage I am new to investing so I’m still not familiar with how this all works. In the example I calculated I have a loss of say $5K and yet in the section directly underneath I have a greater loss of say $6K. I don’t get this bit? What is my loss? The lower or the higher figure? Is this what I claim as a loss at tax time? I also don’t understand the equity section.
Sorry if these are dumb questions! Would have been great for a more detailed explanation on each section. Like some of the other users I didn’t understand all of the pop up boxes. This product seems to be designed for people who know what they are doing. Not a novice like myself.
I’m trying! Any help would be appreciated.
Goddess K
Hi
The loss in the net cash flow is your out of pocket loss(if the figure is negative), when you include depreciation as a cost, then the net profit is further reduced giving you the figures you are seeing. The net profit is your net cash flow + capital costs – depreciation. To get a handle on what you can claim as a tax benefit you need to seek the advice of an accountant.
Equity is the amount of unrealised equity in the property. This is based on the estimated value and appreciation compared to the current value + closing costs.
Hope this helps
regards
Philip Batey
JATPAC DesignsAuthor of Investment Detective
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