Where to record Settlement Costs

Question

What account would you record "Settlement costs under?

DuncanS · Answer

@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

K3 · Answer

Yes settlement of property

DuncanS · Answer

@K3

Please provide further information.

Are you talking about a Property Settlement?

Duncan