The tenant is asking that we provide trash cans along the store fronts along with service of these cans as part of the "Common Area Maintenance" and allocate the cost proportionately to each of the tenants.

If so- create a conservative proforma detailing your debt service(interest+principal) payments, expenses, and vacancy allocation (budget a month you will have no tenant and thus no income).

Since allocation of real estate costs of closing are very regionalized, these costs of closing may be paid with exchange proceeds (or deducted from gross proceeds before establishing the exchange account) on either sale of relinquished or purchase of replacement property.

After the $9,000 in rehab, maintenance and cap-ex will be minimal for a few years, so I'm going to allocate 10% total for those. 10% for management (even though self-managed) and 5% for vacancies is equal to 25% expenses

Quickbooks makes it easy for me to break down each payment for a specific property as well as allocating towards principal and interest.

You pretty much have to bite the bullet, unless there is some reasoning behind allocating a larger sale price to the land portion.

@Mark Nolan How much do you allocate to real estate, and why?

I will see where the rest of the funds were allocated but at the end of the day there are costs no matter where you get the loan.

If, for example, the LLC’s operating agreement allows special allocations of income or loss to be passed through to members, the LLC is not eligible to be treated as an S corporation because it would be considered to have more than one class of stock.

It’s important to be re-allocating as needed.