vacation home held by an LLC - no income

[clarksnack]

LLC multiple partners in a vacation home that isn't being rented out (no income from outside sources).

So in this case, each member made contributions as equity that got them through the purchase of the property and potentially some initial improvements. Beyond that there are other expenses for additional improvements, furnishings, house hold supplies, utilities, taxes, mortgage payments/interest, etc.

Every month each owner contributes money to cover expenses. So beyond their initial equity investment, they make monthly payments. I have a message to the accountant to ask, but I'm trying to learn from as many sources as possible....what technically are those monthly payments made by each of the partners considered (how to code them in the books)?

Would love as much info as anyone would like to share.

 

[clarksnack]

The only way that makes sense to code this based on my experience is equity. The owner has questioned if it has to be equity. I really don't see another possibility other than equity but thought I'd throw it out as a question - to make sure I'm not missing something.