Quicken & Other Budget/Accounting Software/HUD Settlement
I recently bought a building for my business and placed the HUD settlement in my books. I believe I have placed everything correctly except the property taxes that were paid by the seller, not me. I credited the property tax expense and get a negative number on my profit in loss statement. Is that correct? Or should I be place the property tax in another account?
If the Real estate taxes appear on line 106/406 of the HUD, that means you
reimbursed the seller for taxes they paid for a period of time that you were the owner.
That should NOT appear as a negative (credit) in the RE Tax Expense
If the Real estate taxes appear on lines 210/510 then that means you will be
paying RE taxes for a period of time that the Seller was the owner, and that
you were reimbursed for that amount on the HUD. This amount should appear
as a negative (credit) in the RE tax expense, and once you pay the RE tax
bill to the township, it will adjust to the correct amount of expense for the
period of time you were the owner.
Linda Saltz, CPA
Advanced Certified QuickBooks Advisor