An unincorporated business jointly owned by a married couple is generally classified as a partnership (filing Form 1065) for Federal tax purposes.

If the business is not an LLC, the married couple can elect to be taxed as a qualified joint venture file on their joint tax return (Form 1040) provided they are both materially participating in the business and their are no other partners.  This election requires that husband and wife each file their separate business statement reporting the divided income and expenses attributed to each spouse on two separate Schedules (C or F) with separate Self employment tax (SE Tax) Schedules.

Spouses with a rental real estate business not otherwise subject to self-employment tax must check the box on Line 1 of Schedule C and should not file Schedules SE related to the rental real estate business.

The above information is of a general nature only and should not be relied upon for specific situations. Click here for additional business tax services information.

Call Marlies Y Hendricks CPA PLLC at either 716-694-3500 or 910-769-8730 as required to set up an appointment.