DianeW777
Expert Alumni

Business & farm

You should enter two separate but equal activities.

 

As noted by you if you are in a community property state you can choose a disregarded entity and file a Schedule E for each of you by splitting income and expense. You would also have to split the cost of buildings, land for each building and any capital improvements as well as other assets such as appliances.

 

SMLLC IRS 

If an LLC is owned by husband and wife in a non-community property state, the LLC should file as a partnership. LLCs owned by a husband and wife are not eligible to be "qualified joint ventures" (which can elect not be treated as partnerships) because they are state law entities. For more information see Election for Husband and Wife Unincorporated Businesses.

 

The qualified business income deduction (QBID) should be the same since it will be the net result for each of you on your separate rental activities. Make sure you are answering the question in both rental activities about the QBI.

 

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