My husband and I have owned our business for years, but have always shown that my husband only has owned it on our taxes. This year, we're filing a separate Schedule C to show that we both own it, and divided all income and expenses, but all the depreciable assets are on his schedule. Any way to split that? If not, our income levels are really uneven, to the point of showing him at a loss.
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Sure. You will take each asset and divide it's cost basis in two. Enter each asset once on each schedule C but with half the cost basis of each asset.
Filing two schedule C's does not define ownership, though in TurboTax they use those words (This may change in the near future). The only reason to file two schedule C's is so that both spouses earn Social Security credits. Doing this is called a Qualified Joint Venture. You only receive Social Security credits with earned income. Schedule C profits are earned income. If both spouses work the same business, a QJV fits the application best.
Sure. You will take each asset and divide it's cost basis in two. Enter each asset once on each schedule C but with half the cost basis of each asset.
Filing two schedule C's does not define ownership, though in TurboTax they use those words (This may change in the near future). The only reason to file two schedule C's is so that both spouses earn Social Security credits. Doing this is called a Qualified Joint Venture. You only receive Social Security credits with earned income. Schedule C profits are earned income. If both spouses work the same business, a QJV fits the application best.
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