Let me be more specific. The client has multiple companies setup as LLC, the building is owned by one LLC and it leases it to his another LLC. The owner of the building is a disregarded entity. The rent is classified as self rental on schedule E which will make it non passive and wash off with  the expense from the LLC that is paying the rent. The member of the LLC also lends money to his own company instead of increasing his capital investment in the company, he is charging interest on the loan. The interest that the company is paying him back can not be part of his portfolio, but instead be included as income on his schedule e to wipe off what he charged himself. His attorney created the loan documents between the member and the company for liability purpose.