The spouses share of the QJV in a rental is not carrying to form 8582.

[ajacegator]

Only the husband's 50% is showing up on form 8582.  The spouses 50% is not showing up on form 8582.  What am I doing wrong?

[George4Tacks]

Are you working in the partnership module? Is this for a LLC? 

https://www.irs.gov/businesses/small-businesses-self-employed/election-for-married-couples-unincorpo...

[5450MacDonald]

No, it is entered through the rental screen with the Qualified Joint Venture box checked.  The husband's share shows up on the 8582 but the wife's share does not.  

[George4Tacks]

If you are filing a joint return, don't use the QJV box. 

[5450MacDonald]

I thought that was the proper way to do it.  To show each spouse as reporting half of the activity.   

[5450MacDonald]

And it still doesn't explain why the wife's share is not moving to the 8582.

[George4Tacks]

At each entry point in Lacerte you can Press F1 and generally get some very good and helpful information. Here is what you get at QJV entry:

1=qualified joint venture

General Information

Screen 18; Code 108

If the taxpayer and spouse each materially participate as the only members of a jointly owned and operated rental real estate business and they file a joint return for the tax year, they can make an election to be taxed as a qualified joint venture instead of a partnership. Mere joint ownership of property that is not a trade or business does not qualify for the election.

To make this election, enter 1 to check the “QJV” box on line 2 for each property that is part of the qualified joint venture. You must divide all items of income, gain, loss, deduction, and credit attributable to the business between the taxpayer and the spouse in accordance with their respective interests in the venture. Both the taxpayer and the spouse must file a separate Schedule E.

Once made, the election can be revoked only with the permission of the IRS. However, the election technically remains in effect only for as long as the spouses filing as a qualified joint venture continue to meet the requirements for filing the election. If the spouses fail to meet the qualified joint venture requirements for a year, a new election will be necessary for any future year in which the spouses meet the requirements to be treated as a qualified joint venture.

Rental real estate income generally is not included in net earnings from self-employment subject to self-employment tax and generally is subject to passive loss limitation rules. Electing qualified joint venture status does not alter the application of the self-employment tax or the passive loss limitation rules.

In the case of a QJV that is subject to self-employment tax, the business activity would be filed on Schedule C.

My takeaway is that to do what you want, you must do two Schedule E inputs with one marked T and the other marked S. Each would be a QJV and each would go where it is you want it to do. Reality tells me that this is just too much work and really does not accomplish anything. IF the clients were to divorce, then each return might do this, but for MFJ, I am just to lazy to spend the time it taxes during the heat of tax season.