Tax and accounting question

[Joe S.]

Tax and accounting question..

A number of years ago my wife and I purchased a house and placed it in our personal name and not an LLC. Since then we have opened an LLC or two :-). This particular property is still in our personal name and for accounting purposes the houses that were already in our personal name we left in our personal name and all new stuff we placed in an LLC. We have an asset based lender that is doing a refi on a couple of our properties and this is one of the ones there open to doing. The challenges they are saying we need to put it in an LLC. For accounting purposes we are resisting a bit. When we first started working with this particular lender they said that it would not be a problem if this property is in our personal name since it already was and now they're changing their tune. Has anyone come across this personally?

[Ashish Acharya]

Originally posted by @Joe S.:

Originally posted by @Ashish Acharya:

Originally posted by @Joe S.:

Tax and accounting question..

A number of years ago my wife and I purchased a house and placed it in our personal name and not an LLC. Since then we have opened an LLC or two :-). This particular property is still in our personal name and for accounting purposes the houses that were already in our personal name we left in our personal name and all new stuff we placed in an LLC. We have an asset based lender that is doing a refi on a couple of our properties and this is one of the ones there open to doing. The challenges they are saying we need to put it in an LLC. For accounting purposes we are resisting a bit. When we first started working with this particular lender they said that it would not be a problem if this property is in our personal name since it already was and now they're changing their tune. Has anyone come across this personally?

Is there a reason you are hesitant on transferring this one property to LC when you already have other properties there?

We have done personal properties as well as LLC properties separate as far as accounting.

Just put it under SMLLC. The tax reporting and even the accounting doesn’t change.