QUESTIONS: How to treat a loan under the LLC Partnership for rental property to invest in another LLC Partnership for a 1/3 interest in that LLC? Any reference to THE TAXBOOK is appreciated?
Scenario:
LLC Partnership (husband & wife) for rental property.
They take out a LOAN under their LLC Partnership for rental property to invest in another LLC Partnership for a 1/3 interest.
Would this be a distribution? Or would they set up a loan to themselves? Or does their LLC Partnership for rental property have the 1/3 interest since the LLC is responsible for the loan?
Thank you in advance
Scenario:
LLC Partnership (husband & wife) for rental property.
They take out a LOAN under their LLC Partnership for rental property to invest in another LLC Partnership for a 1/3 interest.
Would this be a distribution? Or would they set up a loan to themselves? Or does their LLC Partnership for rental property have the 1/3 interest since the LLC is responsible for the loan?
Thank you in advance