IDAR Posted April 7, 2022 Report Share Posted April 7, 2022 We have an asset at the historical cost and after the refinance we have an increase in the mortgage payable amount so How can we adjust the asset and mortgage payable on the balance sheet? and the client has withdrawn cash at the refinance is it taxable for him? Quote Link to comment Share on other sites More sharing options...
Lee B Posted April 7, 2022 Report Share Posted April 7, 2022 Debit cash, Credit Mortgage payable. The entry for the cash withdrawn depends on the entity type. Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted April 8, 2022 Report Share Posted April 8, 2022 You need to do a journal entry for the deposit based on the closing documents to record all of the associated costs. Depending on the entity and the timing of the withdrawal, you may have issues with debt financed distributions. https://www.thetaxadviser.com/issues/2007/nov/interestdeductionondebtfinanceddistributions.html Quote Link to comment Share on other sites More sharing options...
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