Housing purchased by a company

Housing purchased by a company

 

Question:

Hello!

Years ago I bought a residential property for the company. Some of the money was provided by my wife, who took out a loan. The loan was subsequently repaid by her. When selling a property now, would that credit be relevant to the company's profits?

Thanks!


property, loan, accounting services, Varna, Ruse, Plovdiv, Burgas, Sofia

 

Answer:

Hello,

When buying a home, the company acquired the property against debt obligations to pay it from your spouse. If the company has not returned this money to your spouse, they are owed, whether or not the company subsequently sold the property. Only the interest payable on the cash loan for the purchase of the home (if any) will be relevant to the profit, because only the interest is an expense and the carrying amount of the home sold, which reduces the taxable profit. The loan itself, if not repaid, remains a liability even after the sale of the home by the company.

We hope we have been helpful.

Greetings!




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