From customer Peter O. in Annandale, VA: I own the couple edition. (1) Is there away to account for COLAs in my wife's federal pension? (2) We own an investment/rental house. Where should I input the rental income (net?), appreciation, and ultimate sale value/gain on the house? Thanks!
Here are some answers for you Peter...
(1) Is there away to account for COLAs in my wife's federal pension?
--- if you have only one pension go under the menu Settings and select Pension and set the COLAs in there. If you have more than one pension with different COLAs you will have to move one of them to Cash Infusions in order to set the COLAs differently.
(2) We own an investment/rental house. Where should I input the rental income (net?), appreciation, and ultimate sale value/gain on the house?
--- Rental income should be added to Cash Infusions - button on right hand side. There you can enter the annual rental income, start age (now) and duration would be number of years until you sell the property. If you enter gross rental income, then enter the tax rate to apply to it. If you enter it net of taxes and expenses, then leave the tax rate to apply column at 0%.
For the sale of the property, say you are selling in 10 years, then enter as a Cash Infusion the entire property value (assuming no mortgage), rate of value increase, age would be age at which you sell it, duration would be 1 for a one-time lumpsum infusion. If you do have a mortgage, you'd have to estimate your net value after the mortgage and use that instead of the full property value.
Our program does not amortize mortgages.