Seller Paid Points for a Home Sale

September 28, 2023

Q: We recently had a transaction that included seller paid points. Our old accounting system had an item, but it was not carried over to QB 2009. The person who used to do our accounting and handled those items is no longer with the company. We cannot find a “good place” to post the points. Any help would be appreciated.

A: Points are a percentage of the mortgage amount paid as the loan origination fee. If you negotiated with the seller to cover some of the points, create an asset account.

As the buyer, paid points may still be deductible for tax purposes!

Gita Faust

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Gita Faust has over 30 years of accounting experience in the real estate and property management industry, Gita Faust is more than just a real estate investor; she is also popular for her work as an accountant, consultant, mentor, speaker, QuickBooks Top ProAdvisor, QuickBooks Solution Provider, member of Intuit’s Trainer/Writer Network, and, of course, author. Gita is well-known for her exemplary leadership and advisory skills. In fact, she even helped pioneer the adaptation of QuickBooks to suit the needs of professionals in real estate and property management. To share her knowledge she has written a series of courses titled Simplified Accounting Solution, which provides step-by-step guidance for those working with QuickBooks.

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