We are husband and wife who reside and do business in TX, community property state. In 2023 we formed a WY, LLC to close a rental property quickly and to preserve anonymity, since opening an LLC in TX takes time and owner names are not protected. The rental property we closed into WY, LLC is in the state of TX. All activity from our other rentals in TX is filed on 1040, Sch E and we wanted to keep it that way.
When we formed our husband-wife LLC in the state of WY, we elected to be taxed as a Partnership only because WY was not a community property state, so the IRS website automatically prohibited us from choosing a disregarded entity status for this entity when getting our EIN online. We filed it as a Partnership and filed 1065 for the year 2023.
Later we found out from an EA that since both spouses reside in the state of TX and do business in TX, our asset holding company formed in WY could qualify to be treated as husband-wife disregarded entity due to the owners’ primary residence and place of business in TX, which is a community property state.
To simplify tax reporting we no longer desire to be taxed as a Partnership, but want to see if the IRS could change classification of our WY, LLC to be treated as disregarded entity for tax purposes since we are a married couple - the only owners of this LLC, file our federal 1040 return jointly and would like the activity for all properties to be filed on Sch E. Can we file form 8832 by mail to change WY entity classification from Partnership to disregarded entity? Is that allowed?
