How do I set up an asset account for a property I own?

You need to set up an asset account for a property that you own in order to track the cost basis of the property. As you probably know, if you sell the property, the capital gain or loss on that sale is calculated by comparing your sales proceeds with the original cost of the property. However, in the case of many real estate investments, the cost is not just the original price you paid. The cost is adjusted over time for factors such as depreciation or major common capital improvements.
To set up an account for a property you have just purchased, take the following steps:

1. Display the Pick An Account To Use window.
Click the Accounts & Bills link, and then select Accounts List.

2. Start the New Account Wizard.
Click the Set Up Accounts task link in the list of common tasks. When you do this, Money displays a list of other tasks and hyperlinks in the Set Up Your Accounts window. Click the Add New Accounts link, and Money starts the New Account Wizard.

3. Indicate that this is not an account held at a financial institution.
The first New Account dialog box asks for the name of the financial institution that holds your account. In the case of a bank account, your checking account is actually held by a bank. However, a property you own or manage is “held” by some other financial institution. So when Money asks for the name of the financial in-stitution, click the Not Held At A Bank Or Other Financial Institution option button and then click the Next button.

4. Identify the account as an asset account.
Money displays the second New Account dialog box. Select
Asset from the list of account types, and then click the Next button.

5. Identify the acquisition date.
In the third New Account dialog box, enter a name in the Name box and then enter the acquisition date in the Date You Acquired This Asset box. Click the Next button.

6. Provide the original purchase or acquisition price of the property.
In the fourth New Account dialog box, use the What Is The Asset’s Current Value box to record the purchase or acquisition price . Confirm that the
currency description shown in the What Is The Currency For This Account box
is correct.

NOTE You should be able to get the asset purchase price information from the closing documents. The purchase price, in general, is the total price you paid for the property. If you have questions about whether some element of the cost or fee associated with the purchase is included in this price amount, consult your tax advisor.

7. Describe the mortgage.
When Money asks whether it should set up a loan for the asset, answer this
question by clicking the appropriate option button. Then follow the wizard’s
instructions for setting up the loan account.