Your personal tax return will report the income on Schedule E.
The LLC will probably need to file a 1099 for the rental payment. This website states:
The basic rule is that you must file a 1099-MISC form with the IRS if you pay an unincorporated independent contractor $600 or more during a year for rental-related services.
The rent expense may be deducted but this website talks about IRC Section 469 the self-rental rule.
The self-rental rule in IRC Section 469 applies when you rent property to a business in which you or your spouse materially participates. Under the rule, any rental losses are still considered passive, but the rental income is deemed nonpassive.
That means your self-rental profits can not be offset by passive losses, and the self-rental losses generally can offset only passive income. You essentially forfeit the tax benefits from current rental losses unless you have passive income.
You do not talk about other passive activity losses (PAL) that you may be carrying or generating.
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