Investment vs Receivable

[TAX]

Client "A", LLC, has one member "B" also LLC.

"A" owns real estate.

"B" invested $200,000 in "A" so that "A" can buy property.

"A"'s Book: Loan payable to "B" for $200,000

"B"'s Book: Should it be Investment in "B" or Loan Receivable from "A"

Thanks!

[Davc]

Client "A", LLC, has one member "B" also LLC.

"A" owns real estate.

"B" invested $200,000 in "A" so that "A" can buy property.

"A"'s Book: Loan payable to "B" for $200,000

"B"'s Book: Should it be Investment in "B" or Loan Receivable from "A"

Thanks!

That depends. If it's a loan, then loan receivable. If they acquired an ownership interest, then investment.