taxmo
Level 4
Level 4

@BobKamman wrote:

But community property has nothing to do with how they report the rental income.  

It does make a difference.  In a community property state spouses can share a rental property without needing to make it a QJV.  In a community property state that can even apply if the property is in an LLC, they can still elect to disregard the LLC and it's not a partnership or a QJV.  See Rev. Proc. 2002-69 / 2002 C.B. 831).