This page contains details of as yet unreleased features
You can add Existing / Current Property Assets in Canwi by clicking "Add Asset" on the home / initial position page and selecting an Asset Type of "Property"
The following are able to be added via the form.
Nickname - You'll use this when interacting with the property in future (e.g. Selling it, Renovating etc) so use something you can use to easily differentiate it.
Asset Owner(s) - If the property is used to generate income we'll use this to determine Income Tax and CGT implications for each owner. We assume an even split between Asset Owners.
Purchase Price - The value of the property when you purchased it. If the property is income producing we'll use this when calculating CGT.
Purchase Year - The year in which you purchased the property.
Current Value - The value in the current year - if you're not sure what the value of the property is in the current year - there a range of different services you can use to estimate it - we have no relationship with these providers but you could consider using either:
Annual Growth Rate - We'll use this to project the future value of the property.
For example if you have a property with a current value of $1m and a growth rate of 5% in a year's time its value will be $1.05m. The next year it'll compound by a further 5% etc.
Rental Income - You can provide both a rental income and frequency (e.g. $3000/month) we use this to calculate Rental Yield Rate. The Rental Yield Rate is used to project income from the property.
For example if you have a property with a current value of $1m and a Rental Yield Rate of 5%, it'll generate 50k of income. (i.e. Current Value in year * Rental Yield Rate). We add this income to Taxable Income based on the Asset Ownership.
NOTE: We don't store the Rental Income that you provide - just the Rental Yield Rate so if you open the Edit Asset modal you'll find we've 'reverse engineered' the Rental Income at a monthly interval.
You can also opt to provide Main Residence & Usage History which will improve the accuracy of Capital Gains Tax calculations when selling in future years.
To add historical details of how a property was used click on "+ Add Entry". This will bring up the "Add Historical Property Usage" modal
You can use this to provide details of property including:
Period Start/End Year (we assume Jan 1 dates for both)
Property Usage of either Main Residence or Not Main Residence
Income Generating Details:
If the property was a Main Residence you can opt to provide a portion of the property which was income generating (e.g. if you rented out a room or had part ofyour home used for business purposes / producing income)
If the property was Not Main Residence you can declare whether the property was used to generate income during that time period.
We use this historical property usage information for CGT calculations - you can find some examples of how this is calculated on ATO website.
Frequently Asked Questions
Question: Should I be providing 'real' or 'nominal' growth rates (i.e. do I need to provide an inflation adjusted return rate).
Answer: Provide the nominal return rate - there's no need for you to adjust for inflation, Canwi will calculate this adjustment for you when you view projected values in Today's Dollars.
Question: What happens if I provide an Growth Rate that's below the Inflation Rate.
Answer: The default inflation rate in Canwi is 2.5% (This is adjustable from scenario settings), if you provide a growth rate for your property that's lower than the inflation rate (e.g. you provide a growth rate of 1.8%) when you view the projection / plan in Today's Dollars you'll see the property value decreasing over time. If you view it in Actual Dollars then you'll see the value increasing over time.
Question: I have an investment property - How can I provide the tax deductible expenses?
Answer: Currently you're able to add a Mortgage on which the interest is tax deductible. We don't currently support adding current expenses linked to the property.
Question: I am using my main residence to generate income today (e.g 35% of it is income generating). I have a mortgage against the property - how can I note that 35% of the interest repayments is tax deductible.
Answer: This is not currently available