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att1
November 14, 2024
Question

Book entries

  • November 14, 2024
  • 1 reply
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Can anyone help me with the book entries for this?

 

I have 2 different LLC companies in Quickbooks, companies A & B. Each have their own distinct EIN.

Company A currently has the mortage liability and I want to transfer that liability to company B.

 In other words take the mortgage liability in company A and transfer it to company B.

What are the book entries in each company?

Thank You,

Tom De

 

1 reply

Rainflurry
Rainflurry
November 14, 2024

@att1 

 

Are you planning on transferring the asset too?  You can't have the asset in one LLC and the debt in the other.  Is the creditor ok with this?  Moving the liability is simply a matter of making a capital contribution to the releasing LLC and a capital draw from the receiving LLC.  However, you need to have an adequate capital balance in the receiving LLC or you will trigger a capital gain.  If you haven't, you should discuss this with your CPA.   

 

  

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