Investors & landlords


@Critter-3 wrote:

If the rent you collect has your name on the checks then it is income to your business even if you put it in a trust account ... then you simply deduct the expenses and the amount you send to the owners which will leave only your income on the return and that is then reduced by your business expenses.  It is just that simple ... don't over think it. 

Thanks for the answer.

Just to clarify, say I receive $100,000 in gross rental payments from the commercial tenants reported on a 1099-MISC.  Should submit a 1099-MISC to the owner for the amount of GROSS rents received (in this case $100,000), along with a list of expenses so that they can declare the income/expenses on on their Schedule E, correct? Or do I send the owners a 1099-MISC showing the NET rent received (minus just my management fees)?

 

Also, I (as a multi-member LLC/partnership) should not file a Schedule E because I do not own any of the property, but should instead report income/expense for these rentals on K-1 correct?