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Level 1

Landlord - Accounting rule

I'm a Landlord (LTD Company) and I just both some properties for rental.

 

How should I classify the purchased properties ? is it a transfer to fixed assets?

 

thanks

1 REPLY 1
Rustler
Level 15

Landlord - Accounting rule

Yes the property is a fixed asset, I suggest a fixed asset structure something like this

1234 some street

>> land
>> building

>> >> accumulated depreciation building


land is never depreciated.  Split the purchase price between land and building, use the ratio you calculate from the property tax form to determine the % for land and building

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