Setting up equity account with real estate

rentalowner · ‎January 01, 2020

My brother and I are set up an LLC to rent out a property we jointly own. We set up an equity account for each person.

How do we enter in the rental property into each equity account, and have it shown as a fixed asset (land and building)?

Rustler · ‎January 04, 2020

I prefer the chart of accounts to look like this, all accounts are fixed asset type

124 some street

>> land
>> building

>> >> accumulated depreciation building

Assuming y'all owned the property and are now putting it into the business do a journal entry

debit fixed asset building for the full fair market value

credit partner equity investment partner one for his share

credit partner equity investment partner two for his share

You should have, need to have, a written partnership agreement registered with the state, and an IRS FEIN for the partnership

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