My wife and I have an LLC
Then you have a multi-member LLC. Such an entity files a 1065 Partnership return.
In the community property states of Louisiana, Arizona, California, Texas, Washington, Idaho, Nevada, New Mexico, and Wisconsin if you have a multi-member LLC where there are only two owners, those two owners are legally married to each other, and those two owners will be filing a joint 1040 tax return, they have the option of splitting all business income and expenses down the middle and each partner reporting their share of the business income/expenses on a separate SCH C for each tax filer on the joint return. That means your joint 1040 return will have two SCH C’s included with it – one for each owner.
But this can present it's own problems since your typical rental is reported on SCH E. There are situations where it would be correct to report on SCH C. But just being an AirB&B short term rental is not always enough.
How have you been reporting the rental income/expenses in prior years?
