The owner of my hotel wants the property to pay the framing costs (about $20k) of a very expense tapestry that she owns. Should she pay for it or can I post this to a FF&E account?

Is the framing cost for the tapestry for the owners benefit or the hotels benefit. If the cost is strictly for the owners benefit then the owner should pay the cost herself or you could treat the cost as an owner withdrawal.

If the owner is giving the hotel the tapestry then the framing cost would be an expense. If this is the case you will need more guidance or clarification from the owner or CPA on how to handle the expense. The expense could be an operating expense, which will be on the income statement or a capital expense, which will affect the balance sheet.

For FF&E I assume you mean PP&E.

I agree with pready. If the framed tapestry will be going to the owner's home, then it is a personal expense not a business expense. The bill should not be paid by the business. Instead, she should take an owner withdrawal and then pay the bill with her checking account or credit card.

If the owner is gifting the tapestry to the business and it is going to be hung in the hotel as a decoration, then the value of the tapestry should be recorded as an asset in exchange for stock or an owner's contribution (depending on the type of entity). The tapestry then becomes the property of the hotel and if she takes it back, that would be a withdrawal or distribution of assets.

In that case, the framing can be paid for by the hotel and should be capitalized under furniture and fixtures along with the tapestry itself.