Hi,

I have a case:

1.  A two member LLC purchased a small dental office at $200k end of 2021.

Filed 1065 for the LLC, report it on balance sheet as other investment asset.

2. Durning 2022 $50k spent to remodel, but not sold at end of 2022.  Occured operating expense (HOA fee, property tax, etc.). Should the operating expense & $50k remodel added to the cost?  Then still report on balance sheet under investmetn asset for 2022?

what if the property sold in 2023? Or what if the unit rented in 2023?

Thanks!