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Tax, SDIRAs & Cost Segregation

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Philip Pape
  • Investor
  • Bloomfield, CT
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86
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How to handle expenses to buy property before LLC created

Philip Pape
  • Investor
  • Bloomfield, CT
Posted Sep 6 2016, 15:05

I am in the process of closing on a property, so I have some expenses such as postage, travel, and such. I'm paying and tracking these under my real estate investing LLC.

However, I'm buying the property under a new 50/50 LLC with a partner.

How do I "transfer" the pre-purchase expenses to the property? Do I reimburse my own LLC from the new LLC's capital and then roll all those expenses into the property's cost basis? Or do I keep the expenses as business expenses under my LLC (Schedule C)?

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