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


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?
Jean Marc

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

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Linda Saltz, CPA, QBalance.com


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


Accountant and CPA over 20 years. Specializing in accounting software for over 12 years, Certified QuickBooks Pro Advisor, QuickBooks seminar instructor since 1997.
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