Qualified Joint Venture With Husband - Dividing Income & Expenses

If you decide to split the income 50/50, do the expenses have to be split 50/50 as well? Or can it be just what each person literally pays for? For example, my husband paid for the $18k HVAC system in our building for shared business. I have paid for new photography equipment and other construction supplies. He pays for the mortgage and I pay the electric. ...etc.

444

Level 15

Nov 27, 2019 7:17:10 AM

@SuzanneLG wrote:

If you decide to split the income 50/50, do the expenses have to be split 50/50 as well?

Yes. Technically, with a qualified joint venture, the spouses must share the items of income, gain, loss, deduction, and credit in accordance with each spouse's interest in the business.

See https://www.irs.gov/businesses/small-businesses-self-employed/election-for-married-couples-unincorporated-businesses

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Qualified Joint Venture With Husband - Dividing Income & Expenses