@Opus 17 wrote:
If in a community property state, the spouses have the option of treating it as a disregarded entity. I confess that I do not know in this case, whether that would mean 2 schedule C‘s or 2 schedule E’s.
Based upon the qualified joint venture (QJV) election, it would be two Schedules E (unless the taxpayers were real estate dealers or provided substantial services to their renters).
Spouses with a rental real estate business not otherwise subject to self-employment tax must check the QJV box on Line 2 of Schedule E.
https://www.irs.gov/businesses/small-businesses-self-employed/election-for-married-couples-unincorpo...
NOTE: The QJV election cannot be made if the property is held in an LLC.
