@Mike9241 @Anonymous_ Thank you both! For a little more background, the property was acquired with a 1031 exchange and we had to setup the ownership as tenants-in-common (TIC) with another entity which requires a property management company to manage the property. IRS requires this in order to honor the TIC agreement rather than classifying the ownership as a partnership which would nullify the 1031 in our situation.
Can you let me know if either or both of these options would work instead?
1) Only put the percentage of the property management income on my tax return that matches the % TIC ownership of the other entity. I think this works because as you said the ownership % of my other LLC is just like passing money from one pocket to another so that % shouldn't be considered income/expense.
2) File to have the property management LLC to be taxed as a corporation rather than a single member disregarded entity. This would would require a business tax filing but should allow the full property management income on that return and my ownership % of the expense on my personal return.
