My wife and I rented a 4-office business suite under an LLC. We rent 1 office to her business ( a separate single-member LLC) and sublease the other 3 offices to independent contractors. Do we report the rent we pay for the entire suite and any expenses unrelated to the actual physical property like toilet paper, paper towels, waiting room furniture, etc on Form 1065 and then report rent we collect from the sublessees and things like maintenance and office cleaning on Form 8825? So basically page 1 of Form 1065 will show a loss and then Form 8825 will show a gain that then nets out on Schedule K of Form 1065 ?
