symlink account?
Dale Alspach
alspach at math.okstate.edu
Mon Dec 13 13:47:04 EST 2004
Escrow is actually an asset. One way to handle this is to put that portion
of your payment into an escrow account until you are notified that that the
trustee has actually paid your insurance or taxes. At the time this occurs
make a transaction to credit the escrow and debit either insurance or
taxes. This is a cash basis approach.
The cash basis approach puts large bumps in the monthly income expense
reports. An accrual approach with monthly expensing would smooth this
out. If you want to keep track of the amount the trustee is holding,
expense from a liability account monthly and then "pay" the taxes or
insurance by crediting the escrow account and debiting the liability.
Dale Alspach
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