Do I divide Sch. C inventory and how - married filing separately

[AmyC]

Dave is right. When you go through your state return,  it will ask questions since you are MFS in a community property state. During the questions, you will report the incomes for each of you and the program will handle it. You will need to give your wife the net income for her to use half on her return.

[Alik]

When you do the state return?
But that's only done after the federal is complete.

[AmyC]

I am sorry! No, Dave is correct that your federal sch C is all under your name. You deserve the Social Security credit for working.  Once you get done with your federal return and you go into the state, then it will ask you to start dividing up and filling in information.

[AGI99]

It sounds like you need to override values and you may need to purchase the desktop version and use direct input. https://ttlc.intuit.com/community/taxes/discussion/can-i-efile-with-an-overridden-field/00/479332#:~....

Any professional tax software (not consumer software) can also override.

I would report all of the Sch-C's that you have on your return as normal (100% ownership), then override the community property allocation, override the total income, then review the results and search for more possible overrides. Include a disclosure statement form for your explanation.

For your wife, I would enter community property allocation amounts and that should be it. Since there are no overrides, don't worry about disclosure statements but include one anyways just for kicks.

The goal is just to report everything and pay all of the required SE tax and income tax. I normally recommend filing jointly to save on taxes and keep a community property return simple. I also recommend it for pending divorce cases as long as there is an agreement on how the refund or amount due will be split.