I do the books for an towne house HOA. They foreclosed on a unit that had a reverse mortgage on it. The HOA paid all outstanding taxes and then took possession of it to hopefully make its investment back knowing the bank could come in at any time. The HOA rented the unit until the mortgage company took it over in 2023 (approx 4 years).
I initially set the unit up as a fixed asset since the HOA was receiving rental income.
My question is how do I remove the fixed asset and depreciation from my balance sheet? I know a journal entry needs to be made, but I'm not sure where to debit/credit.
Can someone guide me?
