My partner and I formed a 2 member LLC to purchase rental real estate in 2011.
Last year I bought out his entire interest in the LLC using bank financing ($975K) as well as a loan from him (the exiting partner) for $432K.

We are treating the $432K as a person to person loan , so it is not on the books of the LLC, and I am taking investment interest expense on my personal 1040.

However, on the $975k loan the bank required the LLC and me to both be listed as the borrowers (the deed on the real estate remained in the name of the LLC).

Thus, am I allowed to carry this loan on the books of the LLC since they invoice us and carry the loan in the name of LLC? And what about the closing costs, loan fees, etc? I brought personal cash to the closing. I would like to amortize points, add title fees to the basis, etc on the LLC books rather than try to handle that on my personal 1040.

So I figure the journal entries for the LLC would be:

Credit Long Term Liability (to the bank) $975k
Credit paid in capital $975K
Debit assets as per the loan settlement sheet ($12K)
Credit paid in capital ($12K)

Does this all look ok?