J/E for Purchase of Out of State Property

You're on the right track with capitalizing fees like title fees, title insurance, and escrow closing costs. These should typically be recorded as part of the cost of the property, rather than a separate Closing Costs account. They are usually categorized under a Fixed Asset account for the property itself, as they contribute to its acquisition cost.

As for the premium tax (8%) in KY, it depends on whether it's a one-time tax or an ongoing obligation. If it's a one-time tax related to the purchase, it should also be included in the property’s cost (capitalized). However, if it's an annual property tax, then it should go into a Property Tax Expense account rather than being capitalized as an asset.

Thank you for responding.

In this particular situation it was a premium tax. So I did in fact book those as a CapEx asset.

On a different property purchased recently, the property taxes were credited on the final settlement statement, to us the buyer,  for a period of time that we actually did not have ownership, but was in the same tax year those taxes would be due...so in that case I booked them as a current liability, because by the end of the year we will owe those taxes (1st 6 months), plus the last 6 months of the year for that specific property.