Accounting for Closing Costs (etc) w/Hard Money
Hi all, I hope this is not a question that has been beat to death and I've just missed it.
I am preparing a pretty simple accounting system to account for a BRRR property. The acquisition would use a hard money loan, with typical closing costs involved. I've also paid for some inspections for my own due diligence.
I am curious how people have accounted for these closing costs. I understand how accounting for and amortizing expenses vs. property basis works, but only so with a traditional loan. Most guidance recommends amortizing expenses over the loan term. What if the loan term is less than 12 months? Simply amortize your closing costs in the first fiscal year?
Thanks for any answers or feedback, and welcome any and all discussion related to this topic!