ThomasM125
Expert Alumni

Investors & landlords

You may be able to treat the entity for tax purposes as a spousal joint venture and as such enter the income and expenses on a schedule C, otherwise you would normally file on a partnership form 1065.

 

Since the property is in Washington State, which is a community property state, you probably qualify for the spousal joint venture. If not, then you may qualify anyway if you both materially participate in the venture, there are no other partners, and you agree to be taxed as a disregarded entity.

 

That said, it may be simpler to file as a partnership on form 1065, as that will allow you to file all of your income and expenses on one form, as opposed to spitting things up between two schedule C's, one for each spouse.

 

If you choose to file as a partnership, you need the Business TurboTax product. If you file as a disregarded entity (schedule C) you need the Self-Employed or Home and Business version of TurboTax, where you file your personal taxes as well.

 

You can learn more about the spousal joint venture here:

 

https://www.thetaxadviser.com/issues/2019/apr/llc-spouses-partnership-joint-venture.html

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