@Opus 17 wrote:
....with each schedule C reporting half the income and expenses, regardless of how the work was actually divided. (It's not clear to me that this is an option, it may be a requirement. You would want an expert to double check the exact wording of the IRS ruling.)
The following is clear if you read the Revenue Procedure (2002-69):
If a qualified entity..........and the husband and wife as community property owners, treat the entity as a disregarded entity for federal tax purposes, the Internal Revenue Service will accept the position that the entity is a disregarded entity for federal tax purposes.
The option for interests in an LLC held by a married couple in a community property state is the analog to a QJV (or a regular partnership) where the parties can report their income/expenses in accordance with a mutual agreement.
