Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

Husband and wife Partnership filing as sole proprietors

Highlighted
Level 2

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

0 Cheers
1 Solution

Accepted Solutions
Highlighted
Level 12

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.

https://www.irs.gov/businesses/small-businesses-self-employed/election-for-married-couples-unincorpo...

 

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.

View solution in original post

3 Replies 3
Highlighted
Level 12

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.

https://www.irs.gov/businesses/small-businesses-self-employed/election-for-married-couples-unincorpo...

 

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.

View solution in original post

Highlighted
Level 15

Does everyone agree with Bill <w> ?

(I do... 🙂

Former Chump... umm.... AllStar.
If a post answers your question, click on *Accept as solution* for future searches
Highlighted
Level 15

I do, too.


ex-AllStar