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I recently purchased a new home and I'm using my previous home as a rental. The loan is still in my personal company but I have set up an LLC for my rental property. Is there a way for my new LLC company in Quickbooks to essentially assume the loan and escrow account on the rental property from my personal company? I know I can't just delete the debt/loan but I'm hoping there is some way to transfer it to my other company.
What are the entities of each company? Is your 'personal company' a sole proprietorship? How about your LLC - is it taxed as a sole proprietorship or a corporation?
My “personal company” is not really a company. I just opened a “company” in quickbooks to manage my personal finances and this was a personal mortgage. I opened a sole proprietorship LLC to hold and manage this property as a rental and, if possible, I would like to transfers the loan to the new LLC since the rent money goes to that company and the mortgage is now paid by that company.
You will need to get approval from the lender, which is unlikely to happen unless you are able to transfer ownership of the property to the LLC as well. The LLC shields you from personally being responsible for the debt so you can't have the loan in the name of the business and the collateral owned personally. The accounting is simple if both the loan and property are in the name of the LLC.
I don’t want to actually move the loan or refinance. I just want to move it from one company (my personal finances) in quickbooks to another company in quickbooks. The loan is in my name but the mortgage and expenses are paid by my LLC.
If the property and the loan are in your name (not the LLC), then your LLC is just a management company - it doesn't hold the property or the loan. Therefore, neither belong in the books of your LLC. Further, you can't just move the loan to the LLC in QB because you would also have to move the property to your balance sheet as well. The property and the loan are inseparable from an accounting perspective.
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