Tax Law (Questions About Taxes)/classification


How would I classify funds received from the state for a building which housed a business and was taken by eminent domain? A new building will be constructed in the next two years. I'm not sure how to record the liability. Debit to cash in the bank and credit to .......


for book or tax ?

book it is unearned revenue. then reverse it when you spend the money.

for tax, assuming you meet the thresholds and timing etc. (complicated) you dont report income either.  

but that sure sounds like a homework question. isnt it?


Tax Law (Questions About Taxes)

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Tax and general business including hospitality related (hotel mgmt degree and experience in industry prior to obtaining ms tax and cpa).


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