I think I have this but I'm confused about capitalized Fees: Titles Fees, Title Insurance, Escrow Closing Fees-I think they all go in an account on COA called Closing Costs as a current asset.. is that correct?
And what about the premium tax (8%) for KY, where the building is being purchased in that state. Does that go into an account called Property Taxes also categorized as a current asset?
You're on the right track with capitalizing fees like title fees, title insurance, and escrow closing costs. These should typically be recorded as part of the cost of the property, rather than a separate Closing Costs account. They are usually categorized under a Fixed Asset account for the property itself, as they contribute to its acquisition cost.
As for the premium tax (8%) in KY, it depends on whether it's a one-time tax or an ongoing obligation. If it's a one-time tax related to the purchase, it should also be included in the property’s cost (capitalized). However, if it's an annual property tax, then it should go into a Property Tax Expense account rather than being capitalized as an asset.
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