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RECORDING RENTAL INCOME

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.

 

  1. 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)?
  2. IF EACH SMLLC COLLECTS ITS OWN RENT, HOW WOULD I SHOW IT ON FORM 8825 OF THE 1065?
  3. 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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