Hi,
I and my wife have a rental property which we used as our residence until 2019 when we transferred it to an LLC S-Crop. We are the only shareholders of that S-corp. At that time the value of the property was $460,000. The mortgage had been paid off by us before the transfer. Therefore, there was no monetary transaction at the time of transfer to LLC S-Corp. Since then, the property has been rented by the LLC S-Corp.
In this case in which of the line in Liabilities and Shareholders' Equity section this liability will go?
Line 17,19,20,22 or 23?
The LLC S-Corp has no liability in paying that asset value to the shareholders.
I would really appreciate the response.
Thank you,
Nurul Islam.