This board appears to be a wealth with knowledge. Thanks for allowing me to ask away.

I've been analyzing multiple corporate financial statements and have noticed something unique (at least to me) on a few of them.

I've seen a borrowing entity which operates a single commercial property file two separate 1120S tax returns with Return 1 including form 8825 and Return 2 does not. They are filed under separate LLC's and I believe this is to separate Rental real estate income vs business specific income.

Return 1 is left blank on page one and only includes a Net rental loss/gain on schedule k from the attached form 8825. Statement 2 has a complete breakdown of the business gain and expenses.

The thing I'm having trouble understanding is that the gross rents from Return #1 are included in Return#2 as a rent deduction for line 11. I have no idea how that makes sense. Any ideas or correspondence would be most appreciative. Thanks for listening!