LLC report tax on Sch C or Sch E

[Frank W Lentine]

New Pro member in Phoenix, AZ. Just filed personal tax return for 2017. LLC holding our first 4 plex was filed a while back. I was surprised to find that depreciation was not deductible and loss was not reported as non-passive but passive so it stays with the LLC 1065 to match against income for 2018.

Need some help.  What should I be doing different?  Just purchased another 4 plex last month and don't want to make the same mistake.