Security Deposits

[Kevin Galus]

How do you handle security deposits?  I know that they are placed in a seperate account, but I am wondering how to account for non-refundable pet fees?  Can I treat this as income and move it to my day-to-day checking account.  Or does it need to stay in my deposit account as a liability?  If I sell the builing does the non-refundable pet fee transfer with the sale of the building?  Thanks in advance, Kevin!

[Brie Schmidt]

Originally posted by @Kevin Galus:

How do you handle security deposits?  I know that they are placed in a seperate account, but I am wondering how to account for non-refundable pet fees?  Can I treat this as income and move it to my day-to-day checking account.  Or does it need to stay in my deposit account as a liability?  If I sell the builing does the non-refundable pet fee transfer with the sale of the building?  Thanks in advance, Kevin!

 Non-refundable fees are counted as income when they are received and do not transfer.  Refundable deposits may need to be kept separate (depending on your local laws) and would transfer to the new owner upon the sale of the property.