Real Estate Down Payments
jeanpiman
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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jeanpiman
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)?
Comments
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.