Taxes and house hacking with income

[Dean Velodota]

Multi-family owner-occupied home—I live in the bottom apartment. Partner and I have an LLC and, to be fair, since we both purchased the home 50/50, I'm paying "rent" each month to the LLC. We can now only deduct the expenses and depreciation from the rented unit (2nd floor), correct? Income from me into the LLC is considered active? What if I pay him the "rent" separate from the LLC? Would it still be considered LLC income? Obviously my main goal is to be to take advantage of the tax deductions while minimizing tax liability. Thank you!