@Phillip1 -- I was curious about your source for this information about the option in community property states to treat an unincorporated husband and wife owned LLC as a qualified joint venture and report income and expenses on a Schedule C for each spouse.
TurboTax does indicate that an unincorporated LLC wholly owned by spouses in a community property state is treated like this, but IRS Publication 541, Partnerships says (under "Community Property") that "Spouses who own a qualified entity (defined below) can choose to classify the entity as a partnership for federal tax purposes by filing the appropriate partnership tax returns. They can choose to classify the entity as a sole proprietorship by filing a Schedule C (Form 1040) listing one spouse as the sole proprietor."
...I can't find any clarification by the IRS as to how the Schedule SE (or SEs) would be treated in this case, though, or any mention that this is how the Schedule C should be treated in this case anywhere else on the IRS site, either.
Also, I don't think LLCs can be treated as a Qualified Joint Venture, even in community property states. The qualifications regarding "Joint Ownership of LLC by Spouse in Community Property States" is a completely separate exception, at least as treated by the IRS, it seems.
