only if you reside in a community property state can a Husband and Wife LLC avoid filing a partnership return. you should file a partnership return - form 1065. failure can cost you as much almost $5,000 for each year not filed, (about $200 per partner per month late for a maximum of 12 months). for the first 10 months you file on schedule e page 1 as you always had done. the 1065 is for the 2 months the LLC owned the property.
even when not an LLC, a Husband and Wife jointly owned business is supposed to file a partnership return if only one spouse materially participates.
from 1065 instructions
A qualified joint venture conducts a trade
or business where the only members of the
joint venture are a married couple who file a
joint return; both spouses materially
participate in the trade or business, as mere
joint ownership of property isn't enough; both
spouses elect not to be treated as a
partnership; and the business is co-owned
by both spouses and isn't held in the name of
a state law entity such as a partnership or
limited liability company.
