The use of the plural in Reg § 1.469-9(c)(4) indicates that both spouses on a joint return are considered qualifying taxpayers if one spouse separately satisfies both requirements of RE pro. thus on you spouse data worksheet you must indicate that he to is a REP.
IRC 469(c)(7)(B) REP defined
B)Taxpayers to whom paragraph applies
This paragraph shall apply to a taxpayer for a taxable year if—
(i)more than one-half of the personal services performed in trades or businesses by the taxpayer during such taxable year are performed in real property trades or businesses in which the taxpayer materially participates, and
(ii)such taxpayer performs more than 750 hours of services during the taxable year in real property trades or businesses in which the taxpayer materially participates.
In the case of a joint return, the requirements of the preceding sentence are satisfied if and only if either spouse separately satisfies such requirements. For purposes of the preceding sentence, activities in which a spouse materially participates shall be determined under subsection (h).
reg 1.469-9(c)(4)
(4) Treatment of spouses. Spouses filing a joint return are qualifying taxpayers only if one spouse separately satisfies both requirements of section 469(c)(7)(B). In determining the real property trades or businesses in which a married taxpayer materially participates (but not for any other purpose under this paragraph (c)), work performed by the taxpayer's spouse in a trade or business is treated as work performed by the taxpayer under § 1.469-5T(f)(3), regardless of whether the spouses file a joint return for the year.
