Turbotax Home and Business 2019: Husband & wife LLC

[GilbertTaxProject]

My wife and I have an LLC (for consulting work), owned equally, in which we both are active but have no employees. For Turbotax Home and Business 2019, Turbotax suggests we can each fill out separate Schedule C information in Turbotax, with shares of income/expenses matching our shares in the LLC. As a practical standpoint, this seems to require: reporting at 50% value each revenue and expense in the LLC, once for me and then a second time (for my wife's Schedule C). That's OK but maybe a bit odd-sounding: if we have a 1099 form I received from a client, and we report 50% of its value on my Schedule C &  another 50% value on another Schedule C, that might seem weird as the actual 1099 form lists just the single income amount. In other words, would it perhaps make it appear that the 1099 incomes are mis-stated or under-reported if the IRS sees this partial/split amounts on different Schedule C's? An increased audit risk? Hopefully not....   

[CatinaT1]

This is not a problem.  When it is a husband and wife who both own the business it is considered a Qualified Joint Venture and is reported this way on two separate Schedule C's rather than as a partnership return.  It will not cause any problems.

[Carl]

When you have a 1099-MISC, the fact that you received one is not reported anywhere on your tax return, nor is the fact you received one transmitted with your return to the IRS.  So long as the total of all business income received from all sources is "somewhere" on your tax return (such as split between to SCH C's) then you're fine.

It only raises flags at the IRS is your total business income is "less" than the total amount reported to you on 1099-MISC and any K-1's received by/for the business.

So it's perfectly okay to say that you didn't receive any 1099-MISC forms at all, so long as the income reported on that 1099-MISC is included in the total business income received.

[Thu1888]

what about the start up cost? The max you can deduct is $ 5000, so split in half for  each person or you can deduct the max which is $ 5000/eac?

[DianeC958]

The maximum amount you can deduct for startup costs is $5,000 for the business.You do not get $5,000 for each partner.