Any non-Tax accounting topics go here.
Ownership of Assets Reviewed Financils
OK. I can't believe I can't find something clear on this. But I have a LLC/ 50/50 partnership with a lot of operating properties. One partner bought a property using debt from a joint line of credit the members have separately. In this process, they decided they would both own it in the LLC. Everything was done with joint money from inception, but title was in the one members name in 2018 as that was the road it started on. Their subsequent intention is that from inception that it be in the LLC rather than a separate joint venture. In 2019 the legal/title issues were formalized with the property officially being in the LLC.
On a financial statement, could this property be included as part of the LLC in 2018? Just disclose the title issue and chain of events?
Nothing jumped out at me in the PPCs and I know this goes back to day one of accounting school and I just figure out if etched in stone they must have title or if the facts and circumstances are fine. I don't see a topic for title in my old audit and accounting books.
I supposed I could but the property on each of their Schedule Es on their 1040s in 2018. But they have said they want it in the LLC and that in fact is where it is from a legal perspective now.
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