Single member LLC rents from another single member LLC, how is this reported on 1040?

[Lolajean123]

I have a client who owns a business that rents a unit from her other LLC that owns the residence. Would I report the rent as an expense under Sch C and then record the rent as income under Sch E? Where would I depreciate the building?

Also, to further complicate things, she is renting out the other half of the residence as a residential unit as well. This is recorded as Sch E income but how would I split the depreciation since residence is 27.5 yrs and business is 30 years? Would it be 50/50?

[Bsch4477]

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