Transforming Rental Income to Self-Employment Income - Qualified Joint Ventures

This podcast was originally recorded to go up last week, but the new tax bill displaced it so a week late we'll look at something that might have escaped your notice in the tax bill passed last May.  This podcast discusses an issue highlighted in, of all places, the instructions to Form 1065.  The issue is the side effect that occurs when married taxpayers holding rental property in an LLC or other form eligible to elect Qualified Joint Venture Treatment under §761(f) elect to be treated as a Qualified Joint Venture.  The effect is that the rental income (or loss) is no longer exempted from being treated as self-employment income, but now is treated as such.  We'll discuss why this is the case, as well as the interesting location the IRS chose to give us the details of this impact as well as how to actually make the election under §761(f) for any entity.The materials for the podcast are located at http://www.edzollars.com/2008-02-11_Joint_Venture.pdf .The podcast is sponsored by Leimberg Information Services, located on the web at http://www.leimbergservices.com .