Your clients are a young married couple that is not sure how to best file their income taxes. They think they should itemized deductions because they have rental real estate. How should this couple file?

Question

Quizplus · Accepted Answer

A married couple that owns rental real estate would be best of filing jointly to avoid the special $25,000 allowance for rental real estate. Those that can file jointly are A) married and living together B) married and living apart, but not legally separated or divorced C) living in common law marriage, if recognized in the state where they reside. If a spouse dies, the survivor can still file jointly if one to the preceding tests were met during the year, assuming the survivor did not remarry.

Your Clients Are a Young Married Couple That Is Not