How to report rental activity of a disregarded entity that is owned by a partnership?

nicky-shultz · ‎12-07-2019

I have a client that has several partnerships that have rental real estate activity. During the course of a 1031 exchange, the new property was immediately put into a new single member llc, with the partnership being the sole member. The parent partnership is owned by husband and wife, but does file a 1065. This is the first time I have encountered this, not sure where to record the activity of the new single member llc.

taxiowa · ‎12-07-2019

So the partnership did the 1031 exchange, they would have owned it outright anyway, so why they created a separate LLC for the new property, I don't know. In any event it would go on the 8825 with the other rentals owned by the sole member partnership.

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