I have a business set up as a pass-through LLC. I have 2 rental properties but no other income in the LLC. Do I take business losses or divide into the 2 rental sections?

[manyard33]

With no other income in the business LLC, I only show the expenses as a loss on 1040 line 12. Last year, my accountant divided up those business expenses into the 2 rental real estate sections (for the 2 properties).  However, I already have a ton of carryover losses on my rental real estate sections so I'm not sure which way is better.

[Rick19744 · Accepted solution]

You should set up two separate rentals on your Schedule E and allocate the expenses based on which property they are attributable to.