My Comingling Problem
Here's an easy tax question.. too bad I'm not a CPA. Anyway, I've got my LLC (S-Corp) all set up and I'm about to close on a property. The mortgage will be in the name of my LLC (the way I want it for now) However my equity line of credit, that I'm using for my down payment, is being taking out against my primary residence (In my name). The question is, how do I show this on my books? Do I want to show this as my LLC taking a loan from my personal account? How can I do this, especially if my equity line payments are automatically deducted fom my personal checking?
Any help???
Show it as a loan from your personal account to your LLC. Draw up some paperwork and make sure you have a trail that you paid it back.
Best Riches,
Jeff Adam
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lomster,
How did you get the mortgage co to allow you to put the mortgage in your company name?
I have tried this more than once and none of the lenders will allow this (for some reason).
Thanks
have several loans in LLC but signed personally behind corp most banks want personal signatures behind any business loan
So spider,
How is the property listed on the mortgage, appraisers office, title, etc?
loan and title in name of LLC personal signature only for loan guarantee w/bank.LLc provides protection in case of lawsuit seperates and protects personal assets set mine up as S-CORP per accountant advice.
I think your question was answered -Personal Loan.
The only problem I envision with this LLC
election ( as an S-Corp) is that for what ever reason if the property comes out of the LLC (such as for refinancing) it is considered to be a sale and hence a taxable event. Have you thought about that?
A simple way to get title to your LLC is to put the property into trust with the managing member of the LLC/LLC as trustee. Then, sign over beneficial interest to your LLC.
YOur LLC has title and control, and is the defacto owner of the property. You now have your property owned by your LLC.
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