Is this correct?

[Kram BergGold]

My client is an artist. He bought a commercial space for his studio under the name of an LLC. Another accountant had him claim a Schedule C deduction for rent and then he reported the rent on Scheudle E and all the deductions. As the LLC is not filing a separate return, 1065 or 1120, shoudn't my client show no rent and just claim all the deductions and depreciation for the space on Schedule C? To me doing it the other way is like paying rent to yourself. Unless just having LLC status makes the space a separate entity even though it is directly reported on Form 1040. Schedule E.

[Jesse]

I believe you are correct, as a disregarded entity filing schedule C you can not pay rent to yourself. The depreciation and expenses of the property should be reported on schedule C and no schedule E activity.