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Home liability or asset
Accountancy
Personal home is liability or asset and why
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You are asking from the owner point of view or from business pov? For owner personally it will be an asset and any loan taken on it will be liability for him However suppose you run a business XYZ Ltd and you purchase a house for personal use , and take some money from XYZ ltd as loan , then for you it is liability but for XYZ ltd it is an asset as it will get money back along with interest
roshini reddy
You are asking from the owner point of view or from business pov? For owner personally it will be an asset and any loan taken on it will be liability for him However suppose you run a business XYZ Ltd and you purchase a house for personal use , and take some money from XYZ ltd as loan , then for you it is liability but for XYZ ltd it is an asset as it will get money back along with interest
There's a bit confusion some says that personal home is not generating any profits for you on monthly basis and you have to incur expense..soo it must be treated as liability...how far is it true?... please explain
Thread Starter
Harsh sharmaThere's a bit confusion some says that personal home is not generating any profits for you on monthly basis and you have to incur expense..soo it must be treated as liability...how far is it true?... please explain
But , if observed from owner's perspective then Home is asset , because it has monetary value in exchange . And even if loan is taken to acquire it , loan becomes liability rather than Home. Home will remain asset in any condition with owners perspective.
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