An LLC owned by spouses in Florida is treated as a partnership for income tax purposes. That means the boat has to be owned by the partnership. The asset will go on the partnership's tax return.
The partnership has to file its own Form 1065 tax return. Part of the partnership return will be a Schedule K-1 for each partner. You each have to enter the information from your Schedule K-1 in your personal Form 1040 tax return. It is not self-employment and does not go on Schedule C.
To prepare the Form 1065 partnership tax return you need TurboTax Business, which is a different product from Home & Business. TurboTax Business is not available online. It's available only as a CD or a download to install on your own computer, and only for Windows, not for a Mac. TurboTax Business cannot prepare your personal Form 1040 tax returns. You need one of the personal editions for that. The personal editions of TurboTax cannot prepare a Form 1065 partnership return.
If this is the first time you are involved with taxes for a partnership, it would be a good idea to meet with a local tax professional who is familiar with partnerships. The tax pro can explain the details to you and make sure you start off right, even if you later do the tax returns yourself.
