Hi Bob,

My client PTSP rents office space (several offices) and subleases one office. 

No substantial services are provided.  The PTSP pays for a light cleaning service (which is recovered by the rent.)

It was never reported on an 8825 (by me or the previous preparer) until the thought occurred to me this year that it might not be SE income.  

The amount isn't significant to them.  

I don't like reporting net amounts in general, and in the case of rent expense, a net amount won't match the amount on the 1099.

This client is one of my "meatier" clients with new tax issues and complex transactions. It seems that I 'discover' various tax aspects each year, such as this year when I dug deeper into IRC 1401 and rents.  I enjoy this process and it keeps me learning and growing as a CPA.