If "we" opened an LLC, then you have a multi-member LLC. The multi-member LLC files an IRS Form 1065 Multi-Member/Partnership tax return. The business also issues a K-1 to each partner showing each partner's share of income expenses from the rental property, and that K-1 gets entered on each partner's tax return. The informaton from the K-1 will end up on page 2 of the SCH E of each partner's tax return.
To complete the 1065 return requires TurboTax Business, which is different from home & Business. TurboTax Business is no available as an online product or for MACs. It's for the windows platform only. You can pay for it and download the installation file at https://turbotax.intuit.com/small-business-taxes/
Take note the 1065 return was due on March 15th. The late filing penalty for a 1065 is $200 per month, per partner.
The title of the properties is in my husband's personal name.
Then your LLC doesn't own anything, or have any assets, and therefore has no income/expenses to report. Since you are both married to each other and the property is only in the husband's name, then technically the husband is the one that reports all rental income/expenses on his return. The wife would be paid as a W-2 employee of the LLC, which is the easy way to get the wife her share of the income, assuming it's being shared. This means tax withholding on that income would be required.
The husband can also pay the wife as a 3rd party contractor, meaning the wife would report the income on SCH C as a part of her personal tax return, and the LLC would issue the wife a 1099-MISC. But as a member partner in the partnership, the wife would still be issued a K-1 with at least "something" for income from the partnership, separate from the W-2 or 1099-MISC.
Lots of choices here that should have probably been finalized well before creating the LLC. But then, it's not like we learn this stuff through osmosis either. 😀
