My wife and I started an LLC in 2023 for rental properties. We purchased two duplexes in 2023. My question is how do I file expenses incurred that are not directly tied to a specific rental property? Example expenses are LLC setup fees, mileage to view properties we did not purchase, and general office supplies. Do I file Schedule C for these even though all income is from rents and is included on Schedule E?
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You would enter the expenses on the rental property schedule E. You should split them between the two properties, based on a reasonable criteria, such as yearly rental income received from each property. They would not be reported on a schedule C, as that is just for non-rental business activities.
Sounds reasonable, thank you.
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