I'm still confused on how to report the expenses for the subleased part vs the part used for my business.
So, all in all:
Holding Company LLC owns the building.
Business LLC leases the whole building from Holding company LLC.
Business LLC sublets 1/3 of it (the residential apartment portion) to some random tenant.
I have two "properties" listed as "rentals", one is that my Holding Company LLC receives rent from my Business LLC. Business LLC is responsible for all utilities and repairs.
The other "rental" property listed in turbo tax is that my Business LLC receives rent from outside tenants for that apartment and pays some expenses for it.
How do we separate taxes for example? Taxes are assigned to the whole property. Do we just allot 1/3 of the taxes to schedule E? And the other 2/3 to schedule C as a business expense?
I assume depreciation will just be deducted in the first "property" I entered (where Holding Company LLC receives rent from Business LLC).
