REAL ESTATE

ACCOUNTING

COMMON REAL ESTATE INVESTOR ACCOUNTING ISSUES

COMMON REAL ESTATE INVESTOR ACCOUNTING ISSUES

Real estate investors involved in the buying and selling of property need to be aware that costs can be either expensed or capitalized.

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CAPITALIZED COSTS

Preacquisition costs related to a specific property that the investor is actively working to acquire and for which they can obtain financing. The property must also be for sale.

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REVENUE AND PROFIT RECOGNITION ISSUES

There are several accounting methods available depending on two factors. The collectability of the sales value; and The seller’s involvement in the property after the sale.

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