Because MI is not a community property state, your LLC is a partnership that has to report K1 form.
https://www.irs.gov/pub/irs-pdf/f1065sk1.pdf
see box 2 (net rental property income/loss).
So the 20K loss has to be divived between you and your husband and report on K1.
Your husband's 10K cannot be deducted.
Check with a CPA, this is my understanding.
