Real Property

TVRB · ‎July 01, 2021

I have an LLC for a rental property, Then we purchased a piece of property with a home that needed to be torn down. We paid cash did not put it in the LLC. We sold the property and bought a condo using the proceeds. The Condo will be a long term rental. A property management company will be managing both rentals and all rental income will be going into the LLC. bank account.

My Questions are:

1. Shall I add the vacant lot to the LLC or open a new company. If I should add to LLC what are the steps to do this and record all the expenses, insurance, property taxes, cost of tear down the building, etc.

2. Shall I add the Condo to the LLC, or open a new company.

3. And how to i keep all expenses seperate from each other for P&L purposes.

I hope that I have explained this sufficiently and not confused it more than necessary.

Thank you in advance for any help provided

Rustler · ‎July 02, 2021

Whether or not each property should be its' own LLC is a subject for debate all over the net, use your judgement as to what feels right to you. If you make it another company that requires a new subscription to QBOO

Deposit the funds from the sale and use partner equity investment in what ever portion applies between the partners.

then buy the condo

I use the property as a customer and book expenses per property that way, using the same expense account to keep the chart of accounts manageable. But you can also use classes or locations to sort expenses in a report. If yiou use locations be aware that the location is for everything on the bill/invoice, so if you pay for plumbing repair for several condo apartments on one bill, location does not work, you have to use classes

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