My brother and I partnered on the purchase of a short term rental property last year (2021). We were equal investors in the purchase by capital % (50/50), but the property was only put in my brother's name. We also formed an LLC to manage the business expenses and income from the property.
In order to account for my income as a partner in the LLC, I began filling out form 1065 but found myself questioning how to properly define the business income as the LLC is not the owner of the property seeing as it is in my brother's name. Do I still fill out form 8825 to demonstrate the real estate income of the property that informs Schedule K (form 1065)? The only income generated by the LLC is generated by rental income from the STR property in my brother's name.
Your thoughts are much appreciated.
Thank you.
