LLC Owned Jointly With Spouse - Do You Need to File a Partnership Return? [Tax Smart Daily 008]

[@dcggil]

This is exactly what I needed to know. This is very helpful to avoid filing a partnership tax return.

[@Jim11141]

Your comments regarding community property states is correct. However, it is important to note that if there is a prenuptial or postnuptial agreement that sets aside the community property laws, or otherwise states that income is treated differently than is required by the State community property and community income laws, that couple must file a Form 1065. In that case, the community property laws do not apply, so it is as if they do not live in a community property state.

[@scottfreitag6517]

Always dropping little nuggets

[@TheRealEstateCPA]

Thanks Scott!

[@ObviouslyTatiana]

What if one partner worked the whole year and the other did not? How would we file? Would it be 100% on one partner

[@terrylorrah6725]

Some states allow property, real and/or personal, owned by husband and wife to be held as an entirety. If you aren't familiar, it dates back to common law and allows the ownership of property to be held as a single entity with each spouse individually having 100% undivided ownership. How would an LLC owned thusly be treated for federal tax purposes?

[@lesliehatridge2233]

Thanks!! Does the LLC need to own the properties - one of our rentals is part of our home as an Airbnb.

[@mandanasoltani8115]

Is it the same if we need to file Sch C? Like half of income and expenses go to Sch c for wife and Sch c for wife?

[@chegabaldon9252]

Great video! Lots of details, but I'm still confused. Im looking info on a specific situation but I've been unsuccessful, will you please help me. My wife and I are starting a tile installation business. Im about to apply for an EIN. We live in NM which is a community property state, that being said we have the luxury of choosing multi-member or single member also we can choose partnership or we can file form 2553 to elect s corp. Which strategies would you recommend for us. In addition we would hire 1 or 2 employees in the future. Thank you again.

[@yerandysilva4815]

I just have the same question.

[@vivianlee-z6n]

Thank you for your video. I have a question: If the couple purchase real estate using their names, but managed by the LLC established by the couple, Is it a good practice? Do they need to change the ownership of the property to LLC?

[@PhillipRousu-i7y]

wait, what if you are 51/49 ??? is that not a multimember?

[@creciendoensabiduria]

I live in New Jersey, if have an LLC which I own a 100% and my husband has a different an separate job, Do we have to file taxes together?

[@mcuthrell]

How should you file if your LLC is owned by your Trust, where you and your spouse are Trustees and you both live in a community property state? Also, even if you do live in a community property state, is there less chance of an IRS audit if you do file a partnership return and issue K1s?

[@TheRealEstateCPA]

The LLC would be a disregarded entity since the trust owns 100% of it. You may have state/local filings for the LLC but from a federal perspective it doesn't sound like you'd have a filing.

[@blakely222]

@@TheRealEstateCPA I am assuming this is still true in a non-community property state? Thanks!

[@jerrylee5463]

What if rental property is purchased in the name of a spousal LLC in a community property state but only one spouse is active in operating the business? Do you still split income & expenses 50-50 between the spouses and check the QJV box on Schedule E?