Indeed, tax regulations can be quite intricate and occasionally appear to be self-contradictory. It's possible that I may have misconstrued it, but after extensive reading and research, it seems that in community property states, individuals might be required to file two schedule Cs. I came across an article in The Tax Adviser that further delves into this topic.  The article explains that if joint venture status is elected, each spouse files a Schedule C, Profit or Loss From Business, Schedule E, Supplemental Income and Loss, or Schedule F, Profit or Loss From Farming, as appropriate, to report his or her share of the items of income, gain, loss, and deduction.  

I may very well be misunderstanding the article and the rules, which is why I want to see what other tax practitioners in CA or any other community property states are doing.  I would like to file just one Sch C.  It makes it much easier for me.

LLC owned solely by spouses: A partnership or a joint venture? (thetaxadviser.com)