Partnership - We have bought a property and made 2 equal payments from the current account to represent each partners contribution - these payments also included the legal fees. So bank has 2 large payments - how do I tag part of each to Leasehold Property (Asset) and part to pay the open purchase invoice for legal fees please ? The properties are owned jointly by the 2 partners.
(Each partner has also paid in 1/2 of the total of the property cost and some extra working cash which will cover the property, legal cost, and ongoing bills as they come up. These have been tagged 1251 - Money input from other Personal accounts, which I believe is the right way to do this).
I’m no expert but on a Partnership tax return there is an entirely separate section for property and all its expenses.
I would have thought you would need to keep all those transactions on a separate set of property accounts.
That is, unless you are a Ltd company.
Yes, we are keeping these as a separate quickfile - we are not a legal partnership, but effectivly so, and the accountant said to do all investments, drawings, paperwork as 50:50 the same as a partnership.
What I don’t understand how to do is tag a bank transaction which is a payment partly for the Asset (house) and partly for solicitors fees - how do I do that ?
Each line on a purchase invoice can be independently assigned to a category - if you create one invoice with a line for the asset and another for the legal fees set to the appropriate categories and then tag the bank transaction as a payment for that invoice then everything should end up in the right places.