Level 3

I understand that a husband and wife who have a Partnership can file as sole proprietors if they are in a community property state and file 2 schedule  C's .

My question is do they need to write a letter to the IRS to inform them of their intention or can they just file their first tax return on a 1040?


Thanks, Ky

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Level 14

To file as a "Qualified Joint Venture" (not sole proprietors) on two Schedule Cs they can just file the Schedule Cs.  There is no need to notify the IRS.


As a side note, a Qualified Joint Venture can be done in any State.  The restriction is that if they are the only two members of an LLC, then that can only be done in a Community Property State.

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Level 15

Does everyone agree with Bill <w> ?

(I do... 🙂

Former Chump..umm... AllStar...This message was typed from 6 feet away so you can safely read it immediately.

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Level 15

I do, too.