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!