Hi all,
Can anyone help me? I need some general information how to do the books for property development (they buy a house, refurbish it and then sell it). I know how to do the accounts for the long-term construction contracts, but I don't know how to account for buying, improving and selling a property. It is not build from the scratch.
Any help will be appreciated.
Kind regards
Thomas
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Residential Refurbishment
The bookkeeping is not really any different from that of a long term construction project, or new build development in that there is a large initial outlay for the property followed by a lot of smaller items of expenditure. The most obvious difference is the inability to recover any input VAT as the eventual sale will be exempt from VAT.