Husband & Wife Partnership

[Kurly]

Husband & Wife Partnership for 10 years. Split to 2 schedule c's for current and following years.
Questions: File partnership as final return?
Split income, expenses, etc. per percentage to schedule c's?
What do I do with the Sec 179 that was being carry forward in the partnership
return? Does it go on Form 4562 against the schedule c's?
Same question as above pertaining to the assets from the partnership?

Thanks

Kurly

[AZ-Tax]

Filed form 1065 or Schedule C....little confused

Husband & Wife Partnership for 10 years. Split to 2 schedule c's for current and following years.
Questions: File partnership as final return?
Split income, expenses, etc. per percentage to schedule c's?
What do I do with the Sec 179 that was being carry forward in the partnership
return? Does it go on Form 4562 against the schedule c's?
Same question as above pertaining to the assets from the partnership?

Thanks

Kurly

I have a husband and wife team partnership (form 1065) I acquired about 5 yrs ago as a partnership already though the partnership business in rental income, each recieves a K-1 and goes on the MFJ tax return. No schedule C involved.

[Kurly]

Qualified joint Venture

Beginning 2007, if a husband & wife materially participate as the only members of a jointly owned and operated business they may be treated as a qualified joint venture instead of a partnership and file seperate schedule c's.. The TaxBook deluxe edition page 20-3.

Kurly

[DaveinTexas]

2 Schedule Cs

Every taxpayer's situation is different but if the partnership is 50/50 it may make more sense to split the income/expenses on 2 schedule Cs.

It cuts the complexity of filing (burden on taxpayer) and eliminates the late filed partnership return penalty (if they should ever file late) which is currently $195 per partner per month! What a silly penalty to pay when all they had to do was to file 2 Schedule Cs to get the same net result!

Also, depending on your pricing, they may end up paying you the same fee to prepare the return. In the end, I try to eliminate complexity of filing and lessen the burden of filing on the taxpayer. Just don't forget to file the final partnership return. Maybe to make things simple, terminate the partnership on 12/31 so you have a cleaner break.

[AZ-Tax]

I am curious how did the transisition from 1065 to Sch C

Beginning 2007, if a husband & wife materially participate as the only members of a jointly owned and operated business they may be treated as a qualified joint venture instead of a partnership and file seperate schedule c's.. The TaxBook deluxe edition page 20-3.

Kurly

I am curious Kurly how you transitition from an already existing Ptnship to a Sch C?

[JON]

1065 to C

No problem that is an advantage of 1065's. Assets and liabilities can be passed out to the partners without a tax consequence (in most cases)... The only thing I would worry about if there are excess liabillites and the splits are in in ownership %.