USA Transfer of Property - Journal Entry


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Hi, I know I should know this, but I've been doing accounting for a while and I've never encountered this exact situation before. For tax purposes, the business owner transferred his property to someone else, he did it through what we call in Florida, a "Quit Claim Deed". The price they sold it for on the quit claim deed was only $10. What would the Journal Entry be to get rid of the loan and remove the asset from our books? Is there a difference between this being a "transfer" for $10 versus a conventional sale?
 
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kirby

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Just treat as a sale. But, check on the legality of “getting rid of the loan”. If a bank made the loan you cannot just change who the borrower is without bank ok.
 

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