Is the property titled in the LLC name, or husband, or wife only, or in both names? In a non community property state they cannot file a schedule E If the property is titled in the name of the LLC, as the IRS considers the LLC a separate entity, and must file a 1065 if LLC is owned by husband, and wife. They can dissolve the LLC, put the property in both their names then file a schedule E on a joint return. Note only a husband wife owners of rental property can do that. If two unmarried people own a rental then 1065 or some other entity.