Posted by Debbietax_CA on 12/30/07 4:54pm
Msg #228223

Taxes and a Husband and Wife business

This subject has come up before, and there is usually some concern whether those of you who conduct your business jointly with your spouse are required to file as a partnership instead of a sole proprietor. This year the IRS has begun to relax the rules for a jointly owned business as long as it is the husband and wife on a joint tax return. You can now choose to file as a "Qualified Joint Venture" in many circumstances, and file using 2 separate Sch C returns instead of a 1065 return. (Make sure you designate that one Sch C is for the taxpayer, and one is for the spouse) Check the Pub 334 for 2007, which can be found and downloaded from the IRS website, www.irs.gov Just use the links for publications, and you can quickly find this pub. It will help everyone to stay up to date on the latest changes relating to business tax returns.