Home Value On Balance Sheet

Home Value On Balance Sheet

Home Value On Balance Sheet

Should I show the value of my home on the balance sheet minus the mortgage amount? Or should I not show it or list the home as an asset until the mortgage is paid in full?

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Dec 10, 2017
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by: Stephanie

Thank you for your questions about whether or not you should show the value of your home on the balance sheet or if you should wait until it is sold.

It is really up to you, but if you show the asset value along with the liability on the balance sheet from the start and add and subtract from it throughout the years as appropriate, it will make it much easier when it comes time to sell and figure out your gain or loss on the sale.

You would show the value of the home purchase on the balance sheet as follows:

DEBIT Home Asset (total cost - land value)
DEBIT Land Asset (land value)
DEBIT Owner's Contribution (for cash paid)
CREDIT Mortgage Liability (Loan cost)

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