Hi & thanks for using our service. I'll do my best to give you a complete & accurate answer. Please ask me to clarify anything you don't understand.
It depends upon where the property came from. Was it a purchase from an independent party with the consideration being the assumption of the note.?
Then you record the asset at cost.
Which sounds like the amount of the note assumed.
Ok, that's what made sense to me.....but I needed to be sure. Thanks!
OK, no problem; be sure to do your building vs land allocation if that applies.
ie. it is improved property
I split the two 50/50 since the assumption amount was so small.
Please remember to rate my response; if you have any follow-up questions I'd be pleased to answer them.
Usually we use the real estate tax assessment
to get the ratio between land & building
ok, that makes sense.........I'll do that.
you might have more to depreciate that way?
Y'all come back now, hear?
:) sure will!
Ask for me "Steve G"
at the beginning of your question
& I'll come running
I need to sign up for unlimited service...........because I'm trying to do Partnership returns on TurboTax. I think they're right for the most part!
The balance sheet in TurboTax is difficult though.
Are you a CPA?
It can be; need to stick to double entries
Yes, a retired CPA
wise old owl now
Great......I'll ask for you!
OK Janet, hope you avoid the storms