Just did some homework and I can make the entries to amortize the mortgage fees over the life of the loan, thanks!
I will make subacounts under B&I for this property - one for land, then add two for each different schedule (one for the amount, the other for Accum Depreciation). I had thought the initial expenses such as Attorney's Fees should follow the same schedule as the Building's Depreciation, do you know offhand if that is true? If not I can investigate.
The repair credit did throw me for a while. If I were to deduct it, what expense account would I put it against? (just need to know what to name the account)
In addition to what is shown on the journal entry, the following transactions for this property occured prior to the closing:
- Inspections (as stated previously, this will be Inspection Expense)
- Broker Fee (was actually only $200 to the broker not 1/2 payment as originally stated. Are we saying this should be applied to B&I? Perhaps it should originally be applied to Bank Fees and then add a transaction moving it from Bank Fees to B&I at the closing?)
- $500 initial Attorney Fees (seems like it should be treated similar to the broker fee)
- $2000 Refundable Mortgage Fee (I put it to Bank Fees for now, and you can see it refunded to Bank Fees in the journal entry.)
- Property Insurance Payment (occurs yearly, so I put it to Insurance Expense)
- personal check from me as deposit on property (journal entry: Credit loan from member, Debit deposits on properties. 99% sure that's correct)