Partnership owns rental properties in SMLLC

[LouD]

Need some help with how to present rental property activity on a partnership tax return.

First year in existence in 2013, two member partnership that has purchased several residential properties and one commercial property. Not a problem so far, but the thing that has me confused is that the properties were purchased in two separate SMLLCs owned 100% by this partnership - one SMLLC for the residential properties and another SMLLC for the commercial building.

Is it as simple as reporting each rental property as I normally would on the partnership return (Form 8825), or are things handled differently since they are sitting in the SMLLCs and I show the activity on Line 4 of the 1065?

Thanks in advance for the help!

[kcjenkins]

Since a SMLLC can be treated as a 'disregarded entity' for tax purposes I would report each rental property as I normally would on the partnership return (Form 8825).

[LouD]

Thanks KC - wasn't sure if I was overthinking things. Makes sense since that's how it's done on a personal 1040 when rental properties are owned in SMLLC.

Thanks for the help and quick response!