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

[nicky-shultz]

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 · Accepted solution]

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.