Thanks to you and everyone for confirming my thoughts. Let me summarize what I believe gets reported:

1. rental income and expenses for the property rented to someone else is a sch E entry.

2. The residence also goes on E (only to split the taxes and mtg interest) with zero depreciation and no deductible losses. 100% personal use. Or just report half of these on column 1?

He tells me he's paying rent to the LLC for his residence, essentially paying himself. Can I ignore this entirely or do I need to show it somewhere, like a sch C? 2nd E entry? It's not FMV.

And yes he needs to speak with a lawyer about undoing this mess but I need to file this for 2023 first.

Thanks for any help guys.