84 – Taxes – Real Estate

Overhead Expenses

 

Synopsis

Account 84

Debits

Credits

  1. The monthly portion of all prepaid or accrued taxes on real estate owned by the retailer and used in its regular activities.

 

 

Remarks:

Real estate taxes paid on rented property are considered as part of the rent factor and should be charged to Rent/Lease (Account 80).

Real estate taxes are usually distributed over a twelve-month period.  Such taxes should be prepaid or accrued in accordance with tax regulations.

Real estate taxes normally consist of city taxes, county taxes, school district taxes, and improvement assessments.