Skip to main content
E
EdRez
May 2, 2024
Question

We Purchased a property and used a lender who over financed our purchase and we had a refund check from Escrow paid to us

  • May 2, 2024
  • 1 reply
  • 0 views

We Purchased a property and used a lender who over financed our purchase. When Escrow closed the transaction we had a refund check paid out of Escrow to us for the remaining balance. How do we catogarize this when we set up our flip property as a project and we add product and services to track expenses and credits? Would this be considered a COG? 

1 reply

Rainflurry
Rainflurry
May 7, 2024

@EdRez 

 

It depends on what caused the discrepancy.  Assign the deposit for the refund check to whatever portion of the purchase was over-financed.  For example, if it was the value of the property, assign the deposit to the property's fixed asset account.  

Terms & ConditionsAccessibility statement