Quicken & Other Budget/Accounting Software/Property taxes on Hud stat

Advertisement


Question
I am trying to get clarification on an answer that was given on 2/20/2013 regarding real estate taxes on HUD-1 statements.
I purchased a house for rental and I entered the info from HUD as follows in the fixed asset acct.
Sub acct Purchase Price = contract price + settlemt chages (100+103)
Sub acct other = taxes (211)
Note: the house was paid cash, so no loan entries.
Should I change the prop taxes (line 211) to an expense acct ? or can I leave it as a negative asset acct?
Thanks.
Jean Marc

Answer
Yes the local government is going to bill you for taxes that belonged to the seller
So that expense is the sellers expenses. This negative amount will reduce your
real estate tax expense. When you actually pay the bill the net difference between this
credit and the amount paid to the township will represent your true expense.

Hope this helps,

Linda Saltz, CPA
http://www.qbalance.com

We sell and support QuickBooks.  

Quicken & Other Budget/Accounting Software

All Answers


Answers by Expert:


Ask Experts

Volunteer


Linda Saltz, CPA, QBalance.com

Expertise

QuickBooks best practices, troubleshooting, accounting, tax We have over 70 pages of website content about QuickBooks tips, running a business, tax and business startup at http://www.qbalance.com

Experience

Accountant and CPA over 20 years. Specializing in accounting software for over 12 years, Certified QuickBooks Pro Advisor, QuickBooks seminar instructor since 1997.
Producer of www.QBalance.com over 100 pages devoted to QuickBooks help and support and training for small business owners in tax and accounting issues.

©2016 About.com. All rights reserved.