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Business & farm
For simplicity sake:
Report the 1099-MISC on the 1065 for the "ONE" property listed on the 1065's SCH E. For the amount of rent on that 1065 that applies to the other property on your personal 1040 tax return, enter that on on the 1065 as a miscellaneous expense in the rental expenses section of the 1065. Label that miscellaneous expense something like "rental income paid for personal rental" and leave it at that.
This way, on the 1065 SCH E it's "as if" the LLC paid the rent for the other property directly to you as a person who files a personal 1040 tax return, thus making it a fully deductible expense by the LLC.
Then you'll enter that same amount as rental income on the SCH E that gets filed with your personal 1040 joint tax return.
‎January 24, 2020
11:12 AM
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