1) I own the rental property
2) My husband and I are the owners of the MMLLC (50/50)
3) The SMLL (which is a subsidiary of the MMLLC) collected the rent on our behalf and we paid mortgage and pocket the rest.
NOTE: My biggest concern was how to report on the 1065 that the SMLLC (the subsidiary) collected rent, so I wouldn't have the 1099-MISC in the amount of $20,000 (that was issued to SMLLC) just floating around. I think it's the best idea to show it as a wash on the 1065 as regular income and expense since neither of them owns the property.
QUESTION: Should I RECORD it as a 1099-MISC payments in the expense section of the 1065?
