You and your other investors can avoid the 1065 filing requirement and just split income and expenses on your schedule E(s) for your individual return(s).You may have very good reasons for forming a partnership.

The individual lot and zoning will affect each and of course whether or not it’s already a part of the existing house.

The reason your individual tax situation matters is likely because this is a loss that is not deductible to you as a passive loss. 

It's good upside if the demand in the area would support it. 

. :)I have no idea... if people will relate or not... or should I say I wasn't really sure... myself when i first started this journey to see if anyone would even bother joining my facebook group to see what is happening in the brain of a starter individual, to see the tips, tricks and secrets the starter just like you uses to get closer towards financial freedom. 

The IRS generally opposes self-dealing and can assess sizable penalties on both the business entity and the individual involved in the transaction. 

But since one LLC is not the parent of the other (individual stand-alone entities),  we're not sure how to properly account for this transfer. 

You need to look at the individual property to determine what it is worth. 

@Kyle Baron  is not difficult to file conciliation court case nor do you need attorney to represent yourself if you own the property as an individual and not in a company.

If so can I be on the deed as an individual and he as an LLC?