Hal_Al
Level 15

Business & farm

There are no guidelines. If your spouse participates in the business, you can allocate the income and expenses any way you want*; including considering him/her a "volunteer" ( 0% participant ). If you do split the business, each spouse will submit a separate schedule C, with your joint return (or separate, if you choose to file separately).

* Unless there is a deliberate attempt at tax avoidance.

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