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I'm buying an empty parcel of land to build on in the near future. It's a cash purchase and I'm wondering what would be the correct bookkeeping category for it. I'm on a Mac and use an app called Money. The most likely one that I see in the categories included in the app is "Investment:Buy".

I realize this has nothing to do with my taxes but I just want to record it properly. Thanks.

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What keshlam said is correct. In bookkeeping terms, what you are doing is transferring value from some kind of cash account (which may in turn be backed by a loan) to an asset. Effectively, you are exchanging one asset for another.

That asset you are exchanging to is the land that you are buying, which has some value, and which should end up on the asset side of your balance sheet.

Unfortunately, particularly with fixed assets where no two ones are alike, such as land, it's often very hard to know the exact value unless and until you sell it. An appraiser can get you an estimate, but only sealing a deal with an actual buyer can get you an exact value, and at that point, the asset is no longer yours.

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You are purchasing an Asset, I believe.

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