ACCO 450 Study Guide - Final Guide: Rei, Intangible Asset, Cash Flow

• School: Concordia University
• Department: Accountancy
• Course: ACCO 450
• Professor: Robert Campbell

Document Summary

Higher lvr (because extra debt is incurred to borrow processing fee) Higher lvr because property val low risk. Def: when buyer buys from seller without notary evaluation and approval. Def: when a buyer buys the propertry from seller after notary evaluates and approves property. Escrow account: buyer puts dp and mpmt into a escrow acct to protect himself from fraud or property issues. Notary deal is the intermediary in all exchanges of 27471: -dpmt, mpmt, insurance. In 1987, gov"t changed rules regarding real estate construction tax deductions. No piu: cca can be taken as costs are incurred. Piu: cca is taken after project completion. Soft costs and hard cost must be kept together until project completion. Soft costs can be fully deducted after piu. This was put into effect to max govt revenue and rush projects to be completed. Do research to determine housing supply and demand. When prop is sold, cap gains are incurred.