Business Entity

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Husband-Wife LLC Rental Property: File a Partnership Return?

Quick Summary

  • A husband-and-wife LLC holding rental property must generally file Form 1065 and issue Schedule K-1s to each spouse.
  • The “mere co-ownership” exception does not apply once property is placed inside an LLC.
  • The qualified joint venture election is explicitly prohibited for LLCs under IRS rules.
  • Spouses in the nine community property states may treat the LLC as a disregarded entity and file a single Schedule E instead.
  • Couples in all other 41 states have no federal workaround under the current tax law.

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March 16, 2026 Tax Deadlines for Pass-Through Entities

Do you operate your business as a partnership, a limited liability company (LLC) taxed as a partnership, or an S corporation? These structures are known as pass-through entities because income, deductions, and tax credits pass through to owners and are reported on their individual federal tax returns.

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The Quirky Math of Partnership Income

When it comes to taxation, partners in a business may find the math a bit puzzling. You may discover that the amount of partnership income you’re taxed on is more than the amount that was distributed to you. That’s a quirk of taxation that lies in the way partnerships and partners are taxed.

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Russo CPA Tax Tips Caution On Hold

Incorporation: Watch Out for Compensation Issues

Small to midsize businesses have valid reasons for incorporating, not the least of which is putting that cool “Inc.” at the end of their names. Other reasons include separating owners’ personal assets from their business liabilities and offering stock options as an employee incentive.

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The Pros and Cons of Operating as a C Corporation

When deciding on the best structure for your business, one option to consider is a C corporation. This entity offers several advantages and disadvantages that may significantly affect your business operations and financial health. Here’s a detailed look at the pros and cons of operating as a C corporation.

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Help Ensure Your Partnership or LLC Complies With Tax Law

When drafting partnership and LLC operating agreements, various tax issues must be addressed. This is also true of multi-member LLCs that are treated as partnerships for tax purposes. Here are some critical issues to include in your agreement so your business remains in compliance with federal tax law.

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Why an LLC Is Perfect for Your Small to Medium Business

Choosing the right business entity is a crucial decision for any business. The entity you pick can affect your tax bill, your personal liability, and other issues. A limited liability company (LLC) is an attractive choice for many businesses. It can be structured to resemble a corporation for owner liability purposes and a partnership for federal tax purposes. This duality may provide the owners with several benefits.

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