<p>Your question's title and body are not exactly same as there is no credit in the body of the question.</p>
<p>For the question in the body, the rent payment to the Brit will be covered in the current account not capital account.</p>
<p>Capital account only records transaction in assets not returns or income on the assets owned. In your example there is no change in the ownership of the apartment (asset) so capital account will not change. Had the American bought the apartment, then foreign owned assets would have decreased.</p>

CC BY-SA 4.0
2021-12-22T10:40:44.497Z
but Δ capital account = -( Δ current account), right? so it seems like the rent payment should alter both or neither.
Mr. Cooperman
CC BY-SA 4.0
2021-12-22T07:58:58.537Z
2021-12-22T07:58:58.537Z
Dayne
<p>Say a British national owns and rents out an apartment in New York.  When he collects rent from an American renter and that rent payment goes into the Brit’s account at an American commercial bank, does that count as an increase in foreign owned assets in the capital account?  That is, is citizenship the only factor?  Nothing like residence or any other factor?</p>

<accounting>
When is a dollar of bank credit considered to be foreign owned in the calculation of the capital account of the US?
Mr. Cooperman
# When is a dollar of bank credit considered to be foreign owned in the calculation of the capital account of the US?

(Asked by: username_0 on 2021-12-21)

Say a British national owns and rents out an apartment in New York. When he collects rent from an American renter and that rent payment goes into the Brit’s account at an American commercial bank, does that count as an increase in foreign owned assets in the capital account? That is, is citizenship the only factor? Nothing like residence or any other factor?

**Tags:** accounting

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## 1 answers

### Answer by username_1 on 2021-12-22. Score: 2 | Accepted answer

Your question's title and body are not exactly same as there is no credit in the body of the question.

For the question in the body, the rent payment to the Brit will be covered in the current account not capital account.

Capital account only records transaction in assets not returns or income on the assets owned. In your example there is no change in the ownership of the apartment (asset) so capital account will not change. Had the American bought the apartment, then foreign owned assets would have decreased.

> **Comments:**
> **username_0**: but Δ capital account = -( Δ current account), right? so it seems like the rent payment should alter both or neither.  

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