I'M THE OWNER OF 2 SMLLC WHICH ARE SUBSIDIARIES OF A HOLDING COMPANY (MMLLC) THAT I ALSO OWN. EACH SMLLC PURCHASED A PROPERTY, ONE IN CT AND THE OTHER IL. THE HOLDING COMPANY OWNS BOTH SMLLC. I'M ABOT TO START RENTING BOTH PROPERTIES, BUT IS UNSURE HOW TO SETUP COLLECTION PF THE RENTAL INCOME. IS IT BETTER FOR EACH SMLLC TO COLLECT IT'S OWN RENTAL INCOME, OR SHOULD I JUST COLLECT THE RENT UNDER THE HOLDING COMPANY (MMLLC)?IF EACH SMLLC COLLECTS ITS OWN RENT, HOW WOULD I SHOW IT ON FORM 8825 OF THE 1065?IF THE RENT IS PAID DIRECTLY TO THE HOLDING COMPANY THEN HOW SHOULD I RECORD IT ON THE 1065 SINCE IT'S BYPASSING THE SUBSIDARY (SMLLC).

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Question

RECORDING RENTAL INCOME

Forum|Forum|10 months ago
May 19, 2025
1 reply
0 views

I'M THE OWNER OF 2 SMLLC WHICH ARE SUBSIDIARIES OF A HOLDING COMPANY (MMLLC) THAT I ALSO OWN. EACH SMLLC PURCHASED A PROPERTY, ONE IN CT AND THE OTHER IL. THE HOLDING COMPANY OWNS BOTH SMLLC. I'M ABOT TO START RENTING BOTH PROPERTIES, BUT IS UNSURE HOW TO SETUP COLLECTION PF THE RENTAL INCOME.

IS IT BETTER FOR EACH SMLLC TO COLLECT IT'S OWN RENTAL INCOME, OR SHOULD I JUST COLLECT THE RENT UNDER THE HOLDING COMPANY (MMLLC)?
IF EACH SMLLC COLLECTS ITS OWN RENT, HOW WOULD I SHOW IT ON FORM 8825 OF THE 1065?
IF THE RENT IS PAID DIRECTLY TO THE HOLDING COMPANY THEN HOW SHOULD I RECORD IT ON THE 1065 SINCE IT'S BYPASSING THE SUBSIDARY (SMLLC).

Mike9241

each property should be separately reported on the 1065. as for handling the rent and expense what does the MMLLC agreement say. if silent or there is none, then it depends on what you and the other members agree to.