Which Schedule: E Or C For Rentals Owned By Husband & Wife?

When to file Schedule E or C? ...(this is for 2008).
I posted a similar Q a few days ago, but I am still confused.

I own 1 rental on my own and 2 rentals w/ my husband: which forms do we file if we file MFJ, (we will both have W2's and Self employment income too and I know the forms to fill out for those). I have been looking at the IRS website but it has all these clauses about 'family business' if you're husband and wife etc??? I am trying to figure which Schedule to file next year so I can set up the accounting - is this the way to do it?

Options:
Schedule C: fill one out each and and split everything in 2 (for the joint rentals, does it mean we have to get a business license?)
or
Schedule E: Supplemental Income (and just fill out one form?)

Also, will the tax incentives for deducting home mortgage interest be deductable for the years to come?

Assuming that the properties and personally owned by your husband and yourself (whether solely owned or jointly owned), and not owned by a legal business entity.

Rental income and expenses are reported on Schedule E. If filing status is MFJ, then you can put all properties on a single Schedule E.

My answer may change if you tell us that any or all of your rental property is held in a business name.

[ Edited by NewKidInTown3 on Date 04/15/2008 ]

1. When / Why would we put the properties in a business name? (Would we make a partnership/LLC, or other?)

2. What are the advantages? (Tax advantages?)

3. Any recommendations as to where to research this? My CPA is busy, and I'd like to set up the accounting, any tips on where to start?

Any responses would be greatly appreciated.

I replied to you other question. Using an LLC is the way to go (in my opinion) ou get they same flow through tax benifits but you limit you & Hubbys liability. Also there are no extra Taxes like with a corp. for example: if some1 sues because of injury at one property they can go after you & your Hubbys asset and all three properties. With the LLC you & your personal assets are protected only the LLC assets are at risk. I dont know your home state but you can also use a series LLC this seperates each property from the other all under the same LLC, but they can only be formed in Deleware & Nevada that i know of. but you can have an LLC from Deleware & live and own property in another state. Therfore this is still an option for you. Nevertheless get an LLC or at least google LLC vs Sole proprietor to understand more. some times an Accountant is unfamiliar with these issues, though they know all about Finance.
My own accountant didnt know he could own his car under his Company name & write off the price as a business expense. Who would figure that. He thought my vehicles were all vans til he found out vehicle number two was my benz of which he has the same one.

Happy Investing!