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Real Estate Down Payments

jeanpimanjeanpiman Member Posts: 1

Hello, how should one categorize down payments for an investment property (property is in pre-construction, no income is being generated yet)?

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  • MikegMikeg Member Posts: 995 ✭✭✭

    jeanpiman,
    If it going to be an income producing property, meaning a rental, then you would create an account under Property. You should have 2 accounts. One for Land and one for Building. Categorize the cost of land acquisition to land and building costs as they accumulate to Building. This would include interest paid.

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