I purchase tools/items used across all 3 properties so I should therefore deduct them under the LLC instead of the individual property. If I report P&L under each rental unit instead of the business, then my LLC will only ever show a loss...which I am not sure is correct in the eyes of the IRS.
You should report each rental unit's income/expenses. There is an election you can make to treat all rentals as a single activity. This is not supported by TurboTax, but if you have multiple properties, it may not be a bad idea to consult a tax professional and get this done.
The default rule is that each property is treated as an independent activity for which the taxpayer must satisfy the material participation requirement, unless the taxpayer elects under Sec. 469(c)(7)(A) to treat all interests in rental real estate as a single rental real estate activity.
You should report each rental unit's income/expenses. There is an election you can make to treat all rentals as a single activity. This is not supported by TurboTax, but if you have multiple properties, it may not be a bad idea to consult a tax professional and get this done.
The default rule is that each property is treated as an independent activity for which the taxpayer must satisfy the material participation requirement, unless the taxpayer elects under Sec. 469(c)(7)(A) to treat all interests in rental real estate as a single rental real estate activity.