I have something new to me. My clients, husband and wife, formed an LLC with the two of them as the only members. The LLC was formed for their rental property. The rental property deed and mortagage are in the name of the LLC. I understand that the husband and wife LLC is considered a qualified joint venture. In this case, should I complete a 1065 or complete either Sch C or E on their personal return? The do file MFJ. Any help would be greatly appreciated.
A qualified joint venture is a joint venture that conducts a trade or business where (1) the only members of the joint venture are a married couple who file a joint return, (2) both spouses materially participate in the trade or business, and (3) both spouses elect not to be treated as a partnership.
Thank you. Does this mean that if they did not elect the LLC to be treated as a partnership that they will need to file form 1065. If they did properly elect with the IRS to not be treated as a partnership, would I use Schedule E for the rental property?
