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Milly09
Feb 1, 2009, 01:44 PM
I need to transfer a fixed asset (rental real estate) and its mortgage from one LLC to another LLC. Since both LLCs are owned by one person, no cash was involved in the transaction. What entries are needed, and which LLC shows the capital gain?

$250,000 = FMV of home
$200,000 = original cost of home
$120,000 = current mortgage on home
$40,000 = accumulated depreciation
$3,000 = year-to-date net income for rental of home

THANKS!!!
codyman144
Feb 1, 2009, 08:37 PM
Do you plan to transfer this at FMV? If so why not just do it at cost so no one has to show a gain...