A qualified joint venture is a joint venture that conducts a trade or business where (1) the only members of the joint venture are a married couple who file a joint return, (2) both spouses materially participate in the trade or business, and (3) both spouses elect not to be treated as a partnership, the business is not an llc, limited or a S-Corp
Spouses make the election on a jointly filed Form 1040 by dividing all items of income, gain, loss, deduction, and credit between them in accordance with each spouse’s respective interest in the joint venture, and each spouse filing with the Form 1040 a separate Schedule C, E or F and, if otherwise required, a separate Schedule SE
for additional info
https://www.irs.gov/businesses/small-businesses-self-employed/election-for-married-couples-unincorpo...
