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August 20, 2019
Question

Landlord - Accounting rule

  • August 20, 2019
  • 1 reply
  • 3 views

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

Rustler
Level 15
August 20, 2019

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