The real estate screen uses the term "property" which always refers to the building and any depreciable items, not the non-depreciable land. To represent the land purchase and sale, see Special Expenses and Receipts below. None of what follows will be entered in the Real Estate section. Everything related to the land portion of the real estate will be handed with special expenses and receipts.
Entering Special Expenses for land purchase and Special Receipts for sale.
If the purchase of the land is in the past, there is nothing to enter in your current plan for land purchase. MaxiFi does not need to account for expenses like this in the past since there is no depreciation to account for.
If the purchase of the non-depreciable land is in the future, you should enter this purchase as a future special expense using real or nominal dollars, whichever is appropriate as with any future expense.
When the non-depreciable land is sold, you need to create the following receipts and expenses:
1) Represent the future sale price as a future real or nominal not-tax-related special receipt. This is the dollar amount that someone pays you for the land.
Next calculate and pay your capital gains tax.
2) Take your sale price and subtract your original purchase price or cost basis and enter that as a future nominal special receipt taxable as capital gains.
2a) Next give back that same receipt by creating a corresponding not-tax related nominal special expense in the same amount. Together, these last two transactions--the receipt and the expense--will leave you with the capital gains tax on the property sold.
For example, if you purchased a piece of land 10 years ago for $10,000 and you are modeling the sale of the land 10 years from now for $100,000, you would first want to enter that sale as a future special receipt (real or nominal) of $100,000. That receipt represents the check written to you by the buyer. You now have $100,000 in real or nominal amount dollars more after the sale than you had before the sale.
Next you have to calculate and pay the capital gains tax. The nominal gain was $90,000 (you paid $10K and sold it for $100K). So you should enter a future special receipt, in nominal dollars, of $90,000. Then cancel that receipt out (remember, you already got paid $100,000 in step #1 above) with a not-tax related, nominal special expense of $90,000. These final two entries let MaxiFi calculate the tax and leave you with the net capital gains tax.
All of the tax calculations are done in nominal dollars but the Tax report expresses Federal, State, and FICA tax in today's dollars.
Real or nominal?
You'd normally think of the future sale price of your land in today's dollars. If you have a reason to use nominal dollars (for example, you have an agreement about the face value of the check regardless of what happens with inflation between now and then), use nominal.
The receipt/expense to account for capital gains should always be in nominal dollars.