[Blackster]

What is the accounting for selling expenses associated with the sale of real property such as broker's commission, title fees, escrow fees, etc? I have a loss on the sale of this property before these fees (sales price less NBV of property). Do I post these expenses to the loss on sale of asset account or to an operating account such as commission expense? I am not in the real estate business - this property was a rental.

[rehmanvohra]

Any expense related to sale of a property should be reported a deduction from the sale proceeds of the property and compared with the book value. If there is a loss then the full amount appears as a loss on disposal of assets in the income statement

[Blackster]

Thanks - that is exactly how I treated the expenses.