Me and my wife are filing jointly and we have a small business income from freelance jobs. At the beginning of the year I was the sole operator of this business and later on my wife has joined me and we did all the work together.
I wonder how to report this income properly?
I can think of two option but I'm not sure if either is valid:
1. I can calculate the portion of the profit made when we were working together to adjust the partnership share.
2. Indicate two separate businesses - one that was operated by myself (no partners) and the other for joined business (with a 50-50 shares)
Please advice!
