USA How to categorize loan origination fees?

Joined
Sep 19, 2017
Messages
5
Reaction score
0
Country
United States
I have a loan of 100k and only 94.5k was deposited to my bank account. The remaining 5.5k is for loan origination fees. I pay it monthly for 2 years, and then the remaining balance paid off by another loan. As I'm checking the transaction, it was not zero-out because I did not include the origination fees in QB. Can you please help me how to categorize the loan origination fees? This loan is for general operating purposes.
 

Drmdcpa

VIP Member
Joined
Aug 2, 2017
Messages
499
Reaction score
42
Country
United States
If the loan is a business loan, closing costs are an intangible asset subject to amortization over the life of the loan.
 
Joined
Sep 19, 2017
Messages
5
Reaction score
0
Country
United States
If the loan is a business loan, closing costs are an intangible asset subject to amortization over the life of the loan.
Thanks for the answer. What if it's a mortgage loan? Is it tangible asset and amortization?

I have also have recoupment fee for my other mortgage loan, it was paid off by another loan. I have been stuck with these fees, i'm not sure where to enter them. Thank you so much in advance for your help!
 

Drmdcpa

VIP Member
Joined
Aug 2, 2017
Messages
499
Reaction score
42
Country
United States
If you have closing costs on a loan, mortgage is just a loan secured by real estate, those closing costs are booked as an intangible asset to be amortized over the life of the note.

If you refinance thus paying off the original loan, the net closing costs that remain from the original note get written off, and the closing costs from the new note are booked as intangible asset to again be amortized over the life of the now new note.
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Similar Threads


Top