Re the husband/wife partnership that is now allowed to file separate Sked C's. Does this apply to LLC's, also, filing as partnerships? Seems to me it does. Thanks.
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1 member of an LLC is a sole proprietor. More than 1 is a partnership or S corp if they filed the 2553Originally posted by Greenbriar View Post
brianEverybody should pay his income tax with a smile. I tried it, but they wanted cash -
Note the second sentence.
From the IRS website:
Definition of a qualified joint venture
A qualified joint venture is a joint venture that conducts a trade or business where (1) the only members of the joint venture are a husband and wife who file a joint return, (2) both spouses materially participate in the trade or business, and (3) both spouses elect not to be treated as a partnership. A qualified joint venture, for purposes of this provision, includes only businesses that are owned and operated by spouses as co-owners, and not in the name of a state law entity (including a general or limited partnership or limited liability company) (See below). Note also that mere joint ownership of property that is not a trade or business does not qualify for the election. The spouses must share the items of income, gain, loss, deduction, and credit in accordance with each spouse's interest in the business. The meaning of “material participation” is the same as under the passive activity loss rules in section 469(h) and the corresponding regulations (see Publication 925, Passive Activity and At-Risk Rules). Note that, except as provided in section 469(c)(7), rental real estate income or loss generally is passive under section 469, even if the material participation rules are satisfied, and filing as a qualified joint venture will not alter the character of passive income or loss.
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