Hi,
I had some start up costs paid to a legal firm to create my LLC that is the company responsible to receive all my rentals, pay mortgage, repairs, etc. The properties are not deeded into this LLC. This LLC acts the property management of all my rentals.
How do I track the costs paid to the legal firm ? Is it capital expenses, legal fees, or something else?
Thanks.
When I reimburse myself after purchase, new bank account opening, some rental income, I’ll use Category “Legal & Professional → Accounting” to reimburse myself since my accountant is doing it. But for your case, “Legal & Professional → Legal” should be fine. During closing of a purchase, I’ll record attorney fees as “Capital Expense → Closing Cost”.