DORFMONT[at]aol.com wrote:

- quote -

Yes, IRS can argue with it in a way. Cause when one
spouse's name is atop the schedule c, then he/she's deemed
owner of business, and IRS might take the tack that payments
for services to other spouse mean FICA and withholding.

And my heart's with you when you want to save people money,
even our fees.

ChEAr$,
Harlan Lunsford, EA n LA

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Harlan Lunsford wrote:
- quote -

OH nevermind.

ChEAr$,
HL

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"Arthur Kamlet" <kamlet[at]panix.com> wrote:

- quote -

Since no single taxpayer's name goes on Schedule E.......

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

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Arthur Kamlet wrote:

- quote -

If that's one way to do a (joint) schedule c in a community
property state, then good enough for a joint schedule e.
nicht war?

ChEAr$,
Harlan Lunsford

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- quote -

self-employment income, which applies to each person
separately. While it's not proper, except in community
property states, some people will file a "joint" Schedule C
and prepare 2 SE's to save themselves the hassle of
preparing a 1065.

--
Thomas E Healy, CPA, PC
1650 38th St., Ste 202W
Boulder, CO 80301
Please send email to: tom[at]tomhealycpa.com, since I block all email at my
newsgroup address.
phone (303) 443-1804
fax (720) 489-3772

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Arthur Kamlet wrote:

- quote -

Sch E is per taxpayer, not per individual. So, the answer
is yes.

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Arthur Kamlet wrote:

- quote -

Somehow, I think I'm missing your point. I've never heard of
"separate" Schedule E's, so I would expect a "joint"
Schedule E in all cases. (Or, is this one of those special
"Ohio" things? <g> )

Or, are you referring to a case where the married couple
owns a 2-member LLC? If held as community property, the IRS
has ruled that the couple may treat it as a "disregarded
entity." In all other cases, I presume that the couple would
have to treat it as a "partnership."

MTW

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What I plan to do for my one H & W Schedule C, when they
finally make a profit, is figure the net profit on one Sch.
C, divide it in half, issue a 1099 MISC to the other spouse
for their half on their Sch. C (no expenses). Then each
spouse can have their own Sch. SE. I don't think IRS can
argue with this. It saves the cost of filing a 1065 (about
$300). It's my industrial engineer coming out. I just have
to save people money.

Linda Dorfmont E.A. ,CFP, CSA

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How about a joint Schedule E?

Suppose Husband & Wife jointly own their own duplex, live in
half and rent out the other half. I assume they can file a
joint Sch E?

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

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- quote -

Glad to help out, Harlan.

Carol
It's a cats world. I'm just here to open the cans.

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- quote -

Oh I know that Helen, ever since I prepared my first 1065
for a husband and wife partnership back in 1978.

My question revolves around our discussion here a while ago
- - how long ago? I don't know; times sure flies when
you're having fun!

And why do some tax prep software packages have the option?
Wish I had printed out our discussion and conclusions, but
just can't print em all.

ChEAr$,
Harlan

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- quote -

Hey! I think you hit the nail on the head there. Thanks.
Just what I was remembering, or thought I was remembering.
Will cut and paste this to my associate.

ChEAr$,
Harlan

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Harlan Lunsford wrote:

- quote -

Carol has posted what appears to be the "official" IRS line.
But, this issue really boils down to whether the correct TAX
LIABILITY is determine, not whether the correct FORM is
used. In a case where a married couple files a joint return,
it probably doesn't make any difference (for INCOME tax
purposes) how the entity is reported (split C, K-1s, etc.)
barring, possibly, some esoteric considerations. However, if
separate returns are filed, I believe the requirement for
"partnership" treatment becomes MUCH stronger, including
application of rules related to the "substantial economic
effect" of allocations.

But, where this issue gets ~really~ sticky in my opinion is
when SE tax is involved. For that purpose I believe that the
income must be reasonably allocated to the spouse that
performed substantial services (or between the spouses based
on the same principle when both are active in the business).
Yes, there is some reg or ruling out there that holds when
in doubt, it ALL gets allocated to the "husband" (presumably
the "male" <g> ). But, I would expect the IRS and courts to
apply a more "enlightened" analysis than that. <g
Whether the ruling that allows spouses in community property
states to (in so many words) allocate the business income in
any matter they choose ALSO applies to SE tax is a matter of
debate.

MTW

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Harlan Lunsford <hlunsford[at]bellsouth.net> wrote:

- quote -

Harlan, my software states that it is supposed to be on a
1065 unless it is a community property state, then it can
either be a joint Sch. C or 1065 along with K-1s.

Missy Doyle

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"Harlan Lunsford" <hlunsford[at]bellsouth.net> wrote:

- quote -

Well I don't know about "we", but "I" decide that you can't
do it.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

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- quote -

Harlan,

I went into our tax software (Proseries) and it said this:

The IRS has determined that sole propiertorships or farm
businesses that are owned jointly should be reported on a
Form 1065 Partnership return and then K1s issued to both
partners. Exception: If the taxpayer and spouse wholly own
an unincorporated business as community property in a
community property state, the business may be treated either
as a sole proprietorship or a partnership.

Carol
It's a cats world. I'm just here to open the cans.

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- quote -

IRS says no way Jose (or Harlan) on the issue. Do the 1065.

Helen, EA in PA
Director, NAEA; Immediate Past President, PSEA; Tax Expert, AOL
Enrolled Agents - THE Tax Professionals

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Harlan Lunsford wrote:

- quote -

Can partners each elect to file Schedule C's rather than a
partnership return?

Stu

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Yes I know, we've been here before, but that was maybe a
year ago. So refresh me poor memory, please.

A fellow EA (in UA, as opposed to LA) said that with his
and wife's business income (both work in same business),
instead of filing a 1065, he just uses a schedule c for
each, since his software "allows" it.

I told him, that may be okay in community property states,
but not sure about it in "regular" states.

What did we decide on this issue?

ChEAr$,
Harlan Lunsford, EA n LA

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