Booms, Busts, and Recoveries Message Board

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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: elmatador who wrote (17080)	3/20/2002 11:43:34 AM
From: GraceZ	Read Replies (3) of 74559

If you don't count the house as an asset do you then not count the mortgage as a liability? A home is an expense on the income statement, but you have to add it to the asset side of a balance sheet if you are going to put the debt against it as a long term or current liability. If you take the house off the asset side of the balance sheet than you'd have to then take off the debt from the other side and the move the expense of servicing the debt into expense, as if it were rent. If you did that, what would you call the excess over the payoff figure that gets paid to you when you sell that asset? Windfall profit? Return of expense? Ha! Welcome to double entry book-keeping.

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