Is this due to the fact the LLC owns the condo? and is now categorized as a business asset?
No. It's because you incorrectly classified the property as business property. It should be classified as Residental Rental Real Estate and reported on SCH E.
If this is a multi-member LLC then it's reported on SCH E as a part of the 1065 Partnership return. If a single member LLC, then it's reported on SCH E as a physical part of your personal 1040 tax return. Under no circumstances and with no exceptions in your case, will you report one single penny of rental income or expenses on SCH C.
