@streampaw wrote:
I am required by the bank to lease the entire building via a triple net lease to Business LLC.
Does the bank understand that the LLCs are separate entities for state law purposes, but not for the purposes of federal income taxation? In fact, they are all one in the same for purposes of the latter since they are single-member LLCs and you are the sole member of each.
Note Section 162(a)(3) in terms of deducting rental payments for property in which you hold title or in which you have an equity interest.
See https://www.law.cornell.edu/uscode/text/26/162
[you can also read through an old Tax Court case if you want: https://www.bradfordtaxinstitute.com/Endnotes/TC_Memo_1993-326.pdf]
Frankly, you need to consult with a local tax professional and, possibly, legal counsel in order to structure your holdings properly for federal income tax purposes.
