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Updated almost 6 years ago,

User Stats

65
Posts
30
Votes
Ryan Halford
Pro Member
  • Real Estate Agent
  • Tampa, FL
30
Votes |
65
Posts

How to use LLC money from personal account for conventional loan?

Ryan Halford
Pro Member
  • Real Estate Agent
  • Tampa, FL
Posted

Hello all, 

The following situation is concerning proper accounting and tax code.

My understanding is that I can lend via promissory note to my LLC at a reasonable rate (I plan on applying the 10% rate that is charged by the 401k such that the payment is exactly what I need to repay to the account). In this way the entire payment is an expense to the business. In my understanding, according to Tom Wheelright this also eliminates concerns with the 2018 HELOC tax change.

The 401k funds will be down payment for using a conventional loan. MY QUESTION IS... since the money needs to be in my personal account during funding/closing, how do I show that the money belongs to the business? I plan to transfer the deed to the LLC after but how can I papertrail this correctly?

  • Ryan Halford
  • [email protected]
  • (813) 670-7070
  • Loading replies...