Help me with hotel investment bookkeeping.

[Lovorn Brown]

We recently invested in a hotel group and put this under our business; we used personal funds to fund initial investment, and we receive dividends from this investment. How would you account for this in your books? 

[Tim Delaney]

@Lovorn Brown as others have said your initial cash in would most likely get booked as a contribution. The cash coming out would be dividends. You should however consult your CPA to determine the most tax advantageous way of accounting - there could be a scenario that your personal income situation makes it better to consider that initial investment a loan to the business rather than a contribution.

No matter what keep detailed and separate records of the hotel expenses from this point forward and do not mix your personal finances with the business.