A married couple may choose to treat a business entity as a partnership or as a disregarded entity if:
Not in this case, as rental property is reported on the personal 1040 tax return on SCH E.
A 1065 partnership return needs to be completed. Then each partner will be issued a K-1 by the partnership. each partner will enter their K-1 on the 1040 personal tax return. The information from that K-1 which pertains to the rental property will end up on page 2 of the SCH E. It does not matter that the partners are married and filing joint. Each partner will enter their respective K-1 on the joint return.
