Hi,
I have a similar question - I also have an LLC which "manages" the property - collects rent, has expenses, and takes a 10% management fee. The 1099 for distributed rent shows the total amount of rent collected. In TurboTax, my LLC expenses the "rent - fees" which is distributed to the owner. The remainder (profit) is my 10% property management fee. However, this shows as "Net rental real estate income", Box 2 on the K-1. It should be "ordinary business income", Box 1, since it is not rent to the LLC, but actual income for a service.
I listed the property in the TurboTax form, though the LLC does not own that property. I'm not sure how to show all rents collected in the 1099, but show the amount I keep for management fees as ordinary income on the K1.
Thank you in advance for any guidance you can provide,
Lisa
