Transaction for cash property sale w/ closing costs

doubleawilly

Say I sold a property for cash for 10k, with 1k of that paying for closing costs for an income of 9k. What is the best way to log this transaction? Currently I'm adding 2 transactions, one "Sales" deposit transaction for the 10k income, and one custom "Title Fees" withdrawal for the 1k expense. I'm not a huge fan of this as it's 2 logged transactions for the same transaction. Is there a better way?

AlexL

Hey @doubleawilly , do you have 10k hitting your bank account and you separate out the closing costs? Or are you only receiving the income portion (9k) as the rest of it is being passed on before it hits your account?

If you're only receiving 9k, you can use this Help Center article which will allow you to have a single income transaction to house both the 9k income and 1k in fees.
FYI, when opening up the Help Center link, it is targeted towards users who have to account for Transaction fees but the principal in method would be the same for both of these processes (just change the name of the account when following the steps).

If on the other hand you have 10k hitting your account and you're paying 1k out, then this is technically an additional transaction which you need to account for. In terms of whether this would be a liability (money owed at the time the transaction was completed) or an expense, I'd reach out to an accountant/CPA who should be able to advise on your specific situation.