I own a rental property through a single member LLC and also have a property management company with a single member LLC structure that manages the property. Both LLC's taxes pass through to my personal tax return. Is is ok to report property management fees/income on Schedule C & issue a 1099 from the property management LLC to the owner LLC which would deduct it on Schedule E? Since both LLCs taxes are on one tax return, I'm wondering if it's ok to have the property management income and expense deduction on the same return but different Schedules.
