who is we - husband and wife? In a community property state the reporting doesn't change. a schedule E reflecting each taxpayer's (H&W) interest in the property. thus 2 columns are need for each property.
in a non-community property state a multi-member LLC, even if the only members are husband and wife must file a partnership return if the rental is a business. In my opinion, it would be hard to argue it is not a business if you take the Qualified Business Income deduction for the rental.
IRS view
A husband and wife can use Qualified Joint Venture (QJV) reporting for rental real estate under specific circumstances. Here’s how it works:
-
Eligibility: To qualify for a QJV, both spouses must:
- Be married and file a joint tax return.
- Co-own a rental real estate business.
- Not operate the business as a formal partnership or LLC.
