@martinlc What @Rick19744 states is not wrong. I do agree that it is better from both an accounting and tax standpoint to finalize the partnership in 2020 and begin the Qualifying Joint Venture beginning January of 2021. My comments went to how it would be possible to begin the QJV in 2020. What I stated is possible, but I agree that it wouldn't be recommended.
If you were to amend/supersede the 2019 return, it would open up the possibility of the IRS asking questions as Rick19744 mentions, and then you'd have to prove the stance. You probably could do that, because if the only partners in the LLC are you and your spouse, then everything is staying "in house" as it were, and it would not be impossible for your records to be reconstructed to show this. (As I mentioned before, a QJV doesn't need to worry about capital accounts like the partnership does, and this all is "your money" in the end). But if that happens, what you look to save in time/money from having to do a partnership return in 2020 would be eaten up by all these hoops you'd end up jumping through to prove everything with the IRS. So I thank Rick19744 for providing that clarifying information, and hope you make the best decision for your situation.
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