How to record a rental home purchase
I recently sold a large portion of a rental property to an multi member LLC, keeping 10% for myself. Since i purchased the home first, I'm trying to figure out how to record this properly in Quickbooks. Here is the example:
Home was purchased for $100,000 personally. One year later it was sold to the LLC, keeping 10% of the original purchase price as part of my equity in the LLC.
Should the land/building value be $100,000 and the members all would record their contributions (mine being $10,000)? How would you record the 90% portion going out of the LLC for my original purchase of the home?
