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I have a client who purchased 3 buildings with 3 different…

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I have a client who...
I have a client who purchased 3 buildings with 3 different folio. Now he is going to demolish the 3 buildings and just construct one with one folio number. How should i do the bookkeeping for this process. Now i have 3 commercial asset sitting in my balance sheet , eventually i need to get rid of them and only one will stay. How do i do the bookkeeping of the before and after transactions.
Submitted: 10 months ago.Category: Tax
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Answered in 17 minutes by:
10/5/2017
Tax Professional: socrateaser, Lawyer replied 10 months ago
socrateaser
socrateaser, Lawyer
Category: Tax
Satisfied Customers: 40,169
Experience: Retired
Verified

This question probably belongs in the Tax category, because accountants cannot answer questions in the Legal categories. I'll ask customer service to move the question.

Thanks for using Justanswer!

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Tax Professional: PDtax, Certified Public Accountant (CPA) replied 10 months ago
PDtax
PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 5,125
Experience: 35 years tax experience, including four years at a Big 4 firm.
Verified

Hi from just answer. I'mCustomer I can assist since the first expert can not.

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Tax Professional: PDtax, Certified Public Accountant (CPA) replied 10 months ago

The amount paid and demolition should be capitalized as part of the new building.

Once demolished, simply credit each building and land and credit construction in progress.

Thanks for asking at just answer. Positive feedback is appreciated. I'mCustomer

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Tax Professional: PDtax, Certified Public Accountant (CPA) replied 10 months ago

Hi again.Customerhere.

Do you need anything additional/ If not, please take a moment to rate my response.

The site keeps questions open until they are rated, so your feedback, up to five stars, will be appreciated and is needed to take your question from the open list. Thank you.

Customer/p>
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