My wife and I have a sole proprietorship, which is allowed under IRS rules. Accordingly, we each file a schedule C and split the finances 50/50. Now, I am thinking of retiring from an active role in the business, but my wife will continue.
I am not sure how to reflect the change. I could simply keeps filing the 2 Schedule Cs, splitting the finances as usual. I'm not selling the business or abandoning it. I'm simply not participating. There are no other changes.
