I (husband & wife) have an LLC which owns a commercial building. The building is rented out all year long. 1/3 of the building is rented by a individual person. 2/3 is rented by my sons' LLC (automotive business) or which my husband and I are 20% owners. The son's LLC pays rent to use the building, but has been known to skip a month when funds are low. Question: Does son's LLC count as personal usage since we own 20% of his busines? If so, how do I allocate expenses across the rented vs personal usage? Would items like depreciation only be deducted on a percentage base, i.e. 1/3 of the yearly depreciation?
