Real Estate

Capital Gains Tax Provision on Property Sale

Accruing the estimated tax on the profit made from selling a property.

Account NameTypeDebit ($)Credit ($)
Capital Gains Tax ExpenseExpense (+)30,000.00-
Capital Gains Tax PayableLiability (+)-30,000.00

💡 Accountant's Note

In Jordan, gains on property sales may be subject to income tax. The estimated liability is accrued in the same period as the gain so the P&L reflects the true net profit from the transaction.

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