My wife and I are 50/50 owners of our rental real estate LLC. We live in a non-community property state. Currently we file a 1065 and receive K-1s.
If we create a revocable living trust in which my wife and I are grantors and beneficiaries, and we transfer ownership of the LLC to the trust, does this mean we can disregard the LLC and file our income from rentals on schedule E?
I would prefer not to have to file a 1065 if possible despite the lower audit risk.