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Hi & thanks for using our service. I'll do my best to give you a complete & accurate answer. Please ask me to clarify anything that is not clear.
Where is the title of the property, in the LLC's name or in the name of the 4 partners?
Did the partners put any of their own money in the partnership or is it 100% financed with the $120,000. If so, where did the working capital come from?
In the name of each one of the partners not the LLC. They are actually two married couples. And no, they did not put in any money;; all they did was the mortgage for $120000.
Are you there?
are you there?
Did you receive my question?
yes, I can see you on the screen along with my answer to your questions
I see it now, sorry
How much did the property cost?
the total cost was the $120000.00 for the mortgage which included the house and property of course
Well it sounds like they don't have any equity in the project so you would enter the $30,000. in the recourse loan category.
Stephen how come on my screen it is showing the name "fordlover 1988" don't think that is me?
Of course they would have the income for the year as addition to the capital accounts.
Right I knew that part of it. As you can probably tell I am trying to do this for the first time and the problem was where to put that $30k. When you mentions equity that would be if they had contributed monies?
I don't know, it doesn't show that when you log in & out.
Right, you put the 30K in the recourse loan section.
Okay, and yes the partners each will show a $700 gain which I already put on line L current year increase.
And, I thank you very much for a very concise answer.
By the way, we always complete all those schedules even if they aren't required; otherwise, there's no record going forward & it can get complicate; you have to work out the numbers anyway, so you might as well complete the schedules.
I was afraid you would say that; but I agree and will do it; I did think about that and had started doing the schedules; and it dawned on me about not have a record.
I will take your advise and do the schedules. Thanks
ok, I'll leave my contact information in case you want to reach me again.
thanks so much, you were great.
Okay I am going to finish and give my rating
Thanks very much, Steve G.
I already have checked excellent service. If I have questions in future can I request you if your available?