How to record transfer to investment property
Records the reclassification of a building from owner-occupied property (PPE) to investment property when the use changes.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Investment Property | Debit | 500,000.00 | - |
| Accumulated Depreciation - PPE | Debit | 120,000.00 | - |
| Fixed Assets - Building | Credit | - | 500,000.00 |
| Accumulated Depreciation - Investment Property | Credit | - | 120,000.00 |
💡 Accountant's Note
This entry moves the historical cost and accumulated depreciation from the PPE category to Investment Property under the cost model due to a change in management intent.
Practitioner & Systems Framework
💻 ERP Architecture
Requires changing the asset class or category code in the Fixed Asset Master File.
⚠️ Audit Flags
Changes in lease agreements or evacuation of corporate offices for third-party rental.
📄 Required Documentation
Board minutes or signed lease agreement for the property.
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