Married couple LLC

[krav]

A couple live in a non-community property state, but created an LLC (just the two of them as partners) in a community property state for rental property in that state. Since the LLC is under the state laws of a community property state, does that mean that it can be a disregarded entity for tax purposes and rental income can be included on their personal return? Or do they have to go by the residency state? Any help is appreciated! Thanks!

[Maude Lebowski]

The couple will be governed by their resident state's law, regardless of where the entity is situated. So no, the LLC cannot be considered community property.

[krav]

Thanks - I suspected that, but was hoping I might be wrong. Appreciate the confirmation.

[terryats]

Your clients can file "

qualified joint venture" If they don't want to file a partnership

[Maude Lebowski]

Terryats,

No, they can't because it's an LLC: https://www.irs.gov/businesses/small...ted-businesses