Husband & Wife owned business

[joanmcq]

I don't see where there is a difference for community property states. If both work the business, the income is CP, and one Sch C is still ok.

Don't know why a H/W rental property would have EVER filed a 1065. Joint ventures have always been allowed for rentals.

[Jesse]

Don't know why a H/W rental property would have EVER filed a 1065. Joint ventures have always been allowed for rentals.

I'd be interested in an answer to this question as well, why would a H/W rental property ever file a Form 1065?

[LCP]

Two related questions:

1. Anyone see a problem with the husband and wife setting up an LLC in which both are members and then filing the Schedule C(s)? It appears that is allowed since they are still unincorporated.

2. If they participate 50:50, do you see any downside to just filing the one Sched C and two SEs.

[DaveinTexas]

It appears that

Two related questions:

1. Anyone see a problem with the husband and wife setting up an LLC in which both are members and then filing the Schedule C(s)? It appears that is allowed since they are still unincorporated.

2. If they participate 50:50, do you see any downside to just filing the one Sched C and two SEs.

in the case of your first question, the IRS is already allowing this since a more than two member LLC is by default a partnership and if wholly owned and operated by HW....yadda yadda yadda. For the second question, the result is the same. The new bill stated hinted that the correct way to do this is to file two schedule Cs. I suppose the IRS will write new regulations referring to the proper treatment of this allocation soon.

One downside to your second question is the fact that the client's bill would be less due to less forms prepared, but then again so would your workload. I feel that if the same result is accomplished and the correct amount of tax is calculated, the IRS should mind their own business---wishful thinking right?