Community Contributor *
This widget could not be displayed.

How to recording a parcel/lot sale closing for a land developer?

Hi all,


As far as I know the lots a developer holds for sale are considered inventory, not an asset.  I received a closing statement for sales of 4 lots.  Let's use a assumption case here to illustrate.  On the seller side, it shows

credit of $720,000 sale price,

debit $ 528.62 for county property tax,

debit $225 for closing attorney fee,

debit $ 1,440.00 for excise tax,

and debit $612,000.00 for the release fees to the bank which issued the development loan.


How do I enter this transaction in QuickBooks?  It seems using the Customer section may be more complicated than using a Journal Entry approach, right?  If someone can provide some details on the best practice that would be wonderful.


Thank you,