Posted by Jeffrey Short on March 30, 2000 at 07:06:06:
I am not a CPA, though I have passed the exam…
If you had the rental in Jan/Feb (which it sounds like you did), then your approach is correct. You acted as a sole proprietor in the first 2 months of 99… then formed an LLC in March.
I think that the best way to treat this is as a partner contribution. You didn’t initally treat this as a loan (promissory note and payments), so most people would look at this as you “invested” money into the LLC which lead into the buying of an asset…namely the home.
Of course, I could be wrong…