Tax implications for husband/wife starting in rentals

[Daniel C.]

My wife and I are finally getting started with rental properties after months of research and a lot of property hunting. We're going into contract on two duplexes, with one in her name, and one in mine, for financing reasons.

We're looking to meet with an attorney and tax planner, so we'll absolutely ask these questions there as well, but I wanted to ask the forum first.

I work a full time w2 job. She will be transitioning full time into a "real estate professional" for tax purposes. Soul proprietorship sounds like a bad idea unless I only help out with the rentals occasionally, but neither of us plan to take a salary as my w2 job will support us on its own.

Based on the facts provided, are there suggestions for how to structure the rental business and what type of entity if any to use?

thank you