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Updated over 1 year ago on . Most recent reply

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Chad Price
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Best way to purchase furnishings for vacation rental

Chad Price
Posted

Any suggestions on which method is a better way to furnish a rental property?  I am debating whether to use a dedicated business account that is funded to ensure proper tax records vs using a personal credit card so I can accumulate points.  If I maintain proper records I can't see why the personal credit card is a bad option.

Any opinions?

  • Chad Price
  • Most Popular Reply

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    Ian Tyndall
    • Investor
    • Glen Allen, VA
    147
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    149
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    Ian Tyndall
    • Investor
    • Glen Allen, VA
    Replied
    Quote from @Ken Boone:

    It only matters if you are operating as an LLC or not. If you are not an LLC then it doesn't matter. If you are an LLC, then if you use your personal credit card, you would then have to pay yourself from the LLC for what was purchased on the credit card, and you personally would need to provide your LLC with a receipt. So the funds need to come out of the LLC one way or another.

    Not a tax advisor by any means.


     Not a tax advisor, but another method is to classify your personal purchases as capital contributions to the business. A contract or receipt is suggested to show the transfer of property. 

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