Presenting Impairment on Real Estate in REAC

ID Status Date Public/Private Industry AHACPA Contact
#17841 Closed public Multifamily _General Support
Customer Reply

Good afternoon – I have a Client with multiple Multi-family facilities. On a portion of those properties, they have recognized a significant impairment expense at 12/31/22 as they are planning to sell the property in Q1/Q2 and they are currently under contract for an amount less than the current cost of the property.

Where would this type of expense be recognized on the P&L for the purposes of REAC?

Thank you.

Les Sparks

Clare, any expense that is recognized for GAAP will need to be recognized for REAC. In this case the amount should go on line 6890 – Miscellaneous Financial Expenses. Give it a detail and that is all that will be required.

 

Les Sparks
AHACPA | 459 N 300 W #10 | Kaysville, UT 84037 | Phone: 801-547-0809
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From: AHACPA Support <support@ahacpa.org>
Sent: Monday, January 23, 2023 3:30 PM
To: les@ahacpa.org
Subject: Presenting Impairment on Real Estate in REAC [NEW]

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