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Updated over 1 year ago on . Most recent reply

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Joyce Kim
  • New to Real Estate
  • Los Angeles, CA
1
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2
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How to avoiding commingling

Joyce Kim
  • New to Real Estate
  • Los Angeles, CA
Posted

I have a question about how to avoid commingling of funds...I am about to close on my first rental property in my own name and have plans to transfer the title into an LLC later. Once I have the LLC, I will be able to open a separate bank account dedicated to the rental property, but until then, I will be funding expenses for the property from my personal account. For example, I am looking at rental property insurance quotes and will need to have a policy in place by escrow closing date and plan on paying for this from my personal account.

Right now I'm planning on keeping track of the expenses and taking screenshots/earmarking them on my bank statements. Is this sufficient? I'm wondering if I should open another personal bank account dedicated to this property even though I will have the LLC bank account shortly, but maybe that is unnecessary.


Thanks for any insight!

  • Joyce Kim
  • Most Popular Reply

    User Stats

    151
    Posts
    114
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    Joseph Palmiero
    • CPA
    • Pennsylvania
    114
    Votes |
    151
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    Joseph Palmiero
    • CPA
    • Pennsylvania
    Replied

    You will save yourself a lot of headaches if you just open a seperate checking account for your investment property.  You can also get a debit card for the account or get a seperate credit card.  This will simplify your record keeping.

    business profile image
    Palmiero CPA, LLC

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