I have a LLP that has bought 2 houses and are rehabbing them. In 2007 they purchased various equipment like lawn mower, weeder, etc for land maintenance, had legal fees and mortgage interest with on income because the houses are still for sale.
Question 1:
Can the LLP deduct the expenses or do they go to the basis of the property when sold? Their total expenses were $4000.
Question 2:
The partners did not contribute any money, just signed the loans. Is the amount of the loan their basis?
Question 1:
Can the LLP deduct the expenses or do they go to the basis of the property when sold? Their total expenses were $4000.
Question 2:
The partners did not contribute any money, just signed the loans. Is the amount of the loan their basis?