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Join nowI paid off a loan for my business at the very beginning of 2019 and I am working on my balance sheet but I’m confused. I was able to show a 0 balance on the loan under long term liabilities. But my issue now is with the loan fees that I have categorized under current assests and other assets. For 2018 I showed negative $874 under current assets paid in 2018. Since I paid it off January 1, 2019, I had no loan fees paid for 2019. In addition, the total loan fees for this loan was $5241 and this shows under other assets. So now that I have paid off the loan, what happens to the $5241 and the $-874 on the balance sheet?
Also, when I am doing the taxes, I have Loan Fees under assets. Do I show that it was disposed of? If so, what reasoning do I put? The options are “sold, given away, or abandoned.”
Thank you in advance for any advice.
loan fees are typically rolled up into the loan when you take it out - look at your loan documents is that the case?
If not loan fees are an expense, you pay them.
Yes they were rolled into the loan. So on the balance sheet I had a long term liability of $180K (this was for the purchase of the equipment and the loan fees). And under assets I am showing $176K for my equipment, but for the remainder of the loan fees where do I show it on the balance sheet? I have read that it needs to be under current assets and that is where I categorized it. This allowed for the balance sheet to balance. Is that incorrect?
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