A friend and I created an LLC and purchased a piece of land during
2004. The LLC took out a loan to buy the land. We intend to hold the land
for investment purposes. We receive a small amount of rent from a
farmer, but it is less than 2% of the purchase price of the land so my
understanding is that it would be considered a non-rental activity. My
question is where do the expenses (Interest Expense and Real Estate
Taxes) as well as the rent we receive from the farmer get reported on
our LLC's Federal 1065? Are they considered Ordinary Business Income
and reported on page 1 of the 1065. Or are the revenue and expenses
reported only on one of the Schedule K Line Items?

Thanks for your help...