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K3's avatar
K3
User
5 years ago

Where to record Settlement Costs

What account would you record "Settlement costs under?

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  • DuncanS's avatar
    DuncanS
    Ultimate Partner
    5 years ago

    K3 

     

    Please provide further information.

     

    Are you talking about a Property Settlement?

     

    Duncan

      • DuncanS's avatar
        DuncanS
        Ultimate Partner
        5 years ago

        K3 

         

        This is a complex area and you should seek advice from your Tax Accountant.

         

        The Cost, Stamp Duty and Legal Fees are recorded on the Balance Sheet.

        I have a separate account for each.

         

        Adjusting Entries eg water, rates, body corporate etc are recorded in the P&L.

         

        You should have a Settlement Sheet from the Solicitor.

        First, determine who the owner/s are.

         

        Once again, seek advice from your Tax Accountant.

         

        Duncan