I thought I had heard that when a husband and wife are in the same business that a partnership return is not required and two schedule C's can be filed instead. Is this correct?
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See page 5-8 in TTB for information on this topic. Also, you should be able to find ample discussion on the board if you search for the topic. -
Also note that they can, but they don't have to.JGComment
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Community Property State makes the difference
Bottom line, if husband and wife do not reside in a Community Property State, they most likely will not qualify for a Schedule C.Comment
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"Qualified Joint Venture"
It's existed since tax year 2007.
An unincorporated business jointly owned by a married couple is generally classified as a partnership for Federal tax purposes. For tax years beginning after December 31, 2006, the Small Business and Work Opportunity Tax Act of 2007 (Public Law 110-28) provides that a “qualified joint venture,” whose only members are a husband and a wife filing a joint return, can elect not to be treated as a partnership for Federal tax purposes.
Information on how to make the election is in the Schedule C instructions. But yes, it's just filing two Schedule C's.Comment
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