We manage the rentals for the owners. The income flows through us and we collect our commission, pay expenses, and pay out the owners monthly. It is setup as an llc.
If you and your wife are the only members of the LLC, you can report your Business Income and Expenses on Schedule C and choose 'Property Management' as your Business Activity.
The actual Property Owners will report their Rental Income and Expenses (such as your fees) on Schedule E in their return.
Click the link for a detailed article on Reporting Business Income and Expenses you may find helpful.
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