Forum

Asset on balance sh...
 
Notifications
Clear all

Asset on balance sheet


 Nellie
(@Nellie)
Joined: 2 weeks ago
Posts: 1
Topic starter  

Hi all,

 

I took out a mortgage on my primary residence solely for my business. I do not have the closing documents from the purchase of my primary residence (which occured in 1981). What figure do I use to list this as an asset on my balance sheet? I want to use the assessed value. Would this be correct?

 

Thanks!


QuoteSolved
(@fred-delariva)
Joined: 7 months ago
Posts: 1
 

I don't think your primary residence can be used as an asset for your business. If you have a home office dedicated to your business, you may be able to take a deduction for the space you use. Please contact your tax professional to verify.

You stated that you took out a loan for your business so here is what you do:

  • Record the loan and the liability incurred to finance your business. Use the loan date and not when you acquired the house.
    • CASH $XXX
      • LOAN $XXX
  • Record the monthly loan interest and principal payment. 
    • Prin Pmt $XXX
    • Int Pmt   $XXX
      • CASH  $XXX
This post was modified 1 week ago by Fred Delariva

ReplyQuote

Leave a reply

Author Name

Author Email

Title *

 
Preview 0 Revisions Saved
MENU