disregard entity

Forum|Forum|6 years ago
March 15, 2020
2 replies
36 views

My wife and I just file joint-married. we are passive investors in domestic real estate partnerships (LLC's). are we considered a disregarded entity?

ColeenD3

Level 15

Probably not.

You mentioned that both you and your wife own the LLC. You must then elect to be treated as a Partnership or Corporation. You do not qualify as a Qualified Joint Venture unless you are in a community property state.

Rick19744

Level 13

Your facts are not clear at this point:

Did you make a contribution to an LLC where you will receive a K-1?
Did you and your wife set up an LLC? This does not appear to be the case, but just want better details.
Once you respond to these questions, you will be able to get a more informative response.

*A reminder that posts in a forum such as this do not constitute tax advice.Also keep in mind the date of replies, as tax law changes.