I am a bit confused by various IRS instructions and advice I got. Hopefully I can get a bit more information/clarity here ...
To simplify, let's say I own 2 rental properties through a LLC (disregarded). Some income/expense are property specific (e.g. rent, property tax etc) and some are not (see examples below). The question is how to report those income/expense that are not specific to individual property?
For example?
- Interested earned on the business bank account (in the LLC's name)
- Commercial liability insurance for the LLC that covers both rent properties?
- Some legal expense for failed transactions? (e.g. tried to purchase another property and paid some expense, but the transaction failed)
Thanks.