So, I apply more of the payments to the value of the equipment than to the RE until that amount is reduced, then I allocate more to the RE portion.

But the depreciation was in my corporate return and they were too stupid to just go to the individual property schedules and add up the depreciation that was allocated to each house.It was the dumbest thing I've ever seen.The kicker was they did it on the first one and had no problem.

Joshua EllisSorry to say but what you wrote was very confusing and it looks like you need a professional to walk you through the process.1) LLC's do not pay Dividends.Owners can take a distribution from the LLC. 2) Multi-member LLC's normally are considered partnership for tax purposes.You would normally be allocated a share of the income / expenses based on the writings of the partnership agreement. 

Also, your allocations for expenses are all static figures derived from some %.  

Because mortgages are amortized to have an accurate idea of principal paid down you need to allocate the interest from your payments.

Do you have budget allocated to rehab the units.I will be surprised if you can find a purchase in Los Angeles where this makes financial sense. 

You allocate $15 a month to maintenance.

You still don't really get additional deduction benefits, but the allocation of profit/losses is where its required. 

This way at least you'd know where to allocate funds if needed. 2.

Unit-B's tenant is also month-to-month and is the original lessee from 2007.Expenses:Taxes which are 6,500 / 12 = 541Wate/Trash: $72 every other monthGardening: $100/moI have not allocated maintenance and vacancy costs yet as I am brand new to this...WHY DID I BUY THIS:1.