[Bourne]

All,

I recently took up a side bookkeeping gig for a small real estate investment company where I’m creating books for the company and backfilling too much information to type out. The owner contributed his three rental properties to a single member LLC. Obviously the property contributed is recorded as owners equity in the LLC, but at the time of contribution there was also reserves held at the property management company as well as about half a year still worth of prepaid insurance that the LLC can now expense. (I know this is all irrelevant from a tax perspective as it’s seen as a disregarded entity but I want the LLC books to be correct). At the time of contribution, is the owners equity also increased by these assets so that I’m able to get them on the books? This approach is the only way that I know how to get the assets associated with the property on the books and definitely makes sense. This may be a dumb question lol but it’s been a long day.