I think I know the answer to this but it's Friday and I'm doubting myself.

A limited liability company owns an investment property. The principals of the company form a new LLC and, as part of a new loan, transfer ownership of the real property from the original LLC to the new LLC. The original loan and the new loan are both in the name of the original LLC.

Do I report a purchase or a refinance in this scenario?

(p) Refinancing means a closed-end mortgage loan or an open-end line of credit in which a new, dwelling-secured debt obligation satisfies and replaces an existing, dwelling-secured debt obligation by the same borrower.

Who owns the property is not really pertinent.

So the borrower's are the same, but the new LLC will hypothecate the dwelling? If so, Randy's answer says it all.

I guess I was getting hung up on the change of ownership and that turning it to a purchase. Thanks, all