Qualified Joint Venture for RE Spouses

[Cass Hecker]

Anyone have experience designating your LLC (RE rental income/loss) as a qualified joint venture? I am interested in reading all pros and cons of QJV vs. S-Corp, apart from level of complexity of tax returns. Accountant isn't well versed in QJV. Community property state.

[Curt Smith]

Hi Cass, I just gave you my helps based on experience. Do not use an s-corp or llc taxed as an s-corp for holding rentals. A pass through LLC whether single member or multi member (multi member must file a 1065 partnership return).

Your tax benefits on owning rentals will not be changed one penny whether you own in an LLC (transparently pass through to your 1040 sched E) or owned in your pesonal names or owned by a multi member LLC (but left in the default pass through tax scenario) but filing the 1065 partnership return and K-1's for your personal 1040. In the end (excepting in the s-corp scneeairo) you'll pay the same tax, have the same benefits from owning rentals.

I suggested though to get started to not fool with LLCs, rather spend your time finding and buying deals.  This conversation is proving my point.  LOL :)  You could be spending your time on zillow or in propstream.com finding lead lists to be making offers to instead of LLCs.  :)

Join your local REIAs, google city name REIA. Local investors can refer a CPA who owners rentals themself, and give you good entity (LLC) and tax advice.

Sort of a disclaimer that makes sense here;  don't ask the internet for serious medical advice, same goes for legal advice.  A local CPA who is an expert in RE and entities (LLCs) is your best source of help.   But I'm glad to offer my experiences in the mean time.