Which TurboTax product best for: married filing jointly + community property state + LLC with spouse

[4dam]

Curious if anyone can give guidance on which TurboTax product would have the necessary fields and forms to file taxes for this kind of situation:

• Married filing jointly
• In a community property state (CA)
• My spouse and I are the sole 2 members of an LLC with 50/50 ownership/responsibility
• We also both have W2 income and other deductions like charitable giving 

Because of the above, it's my understanding that our LLC is considered a disregarded entity and treated like a Single-member LLC (SMLLC). It's our first year filing taxes for the LLC so I'm not sure which TurboTax product could work for this kind of situation — which product would allow us to elect to treat our LLC as a SMLLC as a married couple? Is there a product that can handle the LLC expenses plus our W2 income? 

Thanks for the help! 

[PatriciaV · Accepted solution]

Since you live in a community property state, you each file Schedule C on your joint return to report your respective shares of the business activity. Fortunately, your LLC doesn't need to file a separate business return.

If you prefer to work in a browser to enter your information, TurboTax Premium is the only option. You need this upgrade to enter business activity.

However, TurboTax for Desktop offers some advantages, like the ability to view the forms in your return as you work. Also, you can prepare as many returns as you wish and e-file up to five returns at no additional charge. Any version of TurboTax CD/Download installed on your personal computer has all the forms you need to file your return. The higher levels (like TurboTax Premier) have expanded interviews and specific On Demand Guidance in the program that you may find helpful.

Note that there are additional charges in all versions of TurboTax for preparing and filing a state income tax return.

[4dam]

That all makes sense! To triple confirm regarding the TurboTax Premium web version:
When you say "you each file Schedule C on your joint return," that is the section in TurboTax Premium titled "Self-employment income and expenses?"

The info we input in "Self-employment income and expenses?" will be used to populate the Schedule C forms?

[PatriciaV]

Yes, you are correct. Self-employment income and expenses are reported on Schedule C.

The easiest way to find Schedule C in TurboTax Online is to open your return and click the magnifying glass at the top right side of the TurboTax header. Enter "schedule c", hit Enter, then click on "jump to schedule c". This will take you directly to the start of this section where you can set up your business and enter your income & expenses.

Or go to the left column and choose Tools >> Tools >> Topic Search. Type in "schedule c", click the topic in the list, then click "GO".

[chumbicha]

I beliebe this answer is wrong. In a husband and wife "comunity" LLC, the husband and wife do not have "separate" income and expenses. Separating the income and expenses in half to create two separate schedule C can produce unwanted consequences (cost basis of inherented property, pass through of LLC property after dead of one of the members, actual ownership of the LLC, etc).  Intuit has to change the Turbo Tax Home and Business program to include the "husband and wife LLC in a community property state" as a disregarded company.   I talked for near an hour with two persons at Intuit about this problem and could not get a proper answer at this problem. I think that using two separate Schedule C may be used in the future to challenge that the property is actually "comunity property". Perhaps it may be good to consult a lawyer about this.