because of no way of writing off depreciation/interest?
Why do you keep saying that? You report the rental income/expenses on SCH E. If you use the program the way it's designed and intended to be used, you will be asked for mortgage interest, property insurance, and the program (not you) will automatically figure the depreciation *for you*.
If its still a Schedule E, but the LLC Bank account is showing money in and out does that suffice for real estate purchases?
Again, the LLC is a disregarded entity. The IS does not, and never has recognized a single member LLC as a separately taxable entity. When you started the LLC you probably obtained an EIN for the LLC. That EIN was obtained directly from the IRS. When you applied for that EIN you were required to provide the IRS a Social Security Number. Any and all transactions associated with the EIN are associated with the SSN it's tied to.
There are only two entities that have any need to know what SSN that EIN is tied to.
1) The person or entity that applied for the EIN
2) The IRS.
That's it. Nobody else has any need to know. Not even the bank where you may have been required to provide an EIN to open a business account.
what are your recommendations?
Stop trying to go around your elbow to get to your thumb. You keep running into your kneecap. If you and the other owner are not married to each other and filing as single, simply split "EVERYTHING" straight down the middle and each of you report your share of income/expenses and everything else on your own tax return on SCH E.
