MFJ return with rental property LLC in non-community property state

[CFCCPA2]

I have a MFJ client with a rental property LLC (they are both 50/50 owners) in a non-community property state (OK). They file their 1040 in Texas. I understand that because their rental property LLC is in OK, that they will have to file a partnership return. Does this mean that they will have to issue themselves a Schedule K-1 through the LLC? 

[sjrcpa]

"They file their 1040 in Texas"

Meaning they live in Texas? A community property state?

Did they acquire this OK LLC/rental property before they resided in Texas or after they already did?

I don't know if it matters. I don't know much about community property. Throwing the questions out for those who do know.

If a 1065 is required, yes there will be K-1s.

[CFCCPA2]

They do not physically live in Texas, because they are military they are able to elect where their taxes are filed (in line with the military requirements), so they have been doing so in Texas for several years now.

My biggest questions -

1. Because their joint rental property LLC is in Oklahoma (non-community property state), do I have to file their Oklahoma state return as a partnership? If I do, would we just issue themselves K-1s splitting everything 50/50 and then file Form 1065 in Oklahoma for the partnership? Is there anything that the entity itself has to file with the state?

2. Because they file their 1040 federal return in Texas (community property state), am I able to file the LLC as a disregarded entity at the federal level even though the LLC flowing through to their return is operating in Oklahoma as a partnership?

I've never come across this scenario before, but at the end of the day it's my understanding that there shouldn't be a dollar impact either way that I file, but I do want to ensure that I'm filing everything correctly. Any help or input is greatly appreciated!

[BobKamman]

They must have been in Texas at one time, to make the election to consider that state their domicile.  This is frequently the case with military from high-tax states, if they haven't made it to Alaska first.  But community property has nothing to do with how they report the rental income.  Neither does whether it is located in Oklahoma, really.  If for federal purposes you have decided they meet the requirements for a "qualified joint venture," then Oklahoma will go along with that also.  Just to be safe, tell them to buy a Bible with Lee Greenwood lyrics.