Business & farm
Per IRS 2021 Instructions for Schedule C :
- Report your income and deductions as follows:
- " If only one spouse participates in the business, all of the income from that business is the self-employment earnings of that spouse who carried on the business
- "If both spouses participate, the income and deductions are allocated to the spouses based on their distributive shares.
- ".
The above info is for a business co-owned by both spouses. If you own the business 100%, you should report all gross income and deductions on your Schedule C, including inventories, of course. You pay all the self-employment tax, and half of the net income is reported on your spouse's return.
2021 Instructions for Schedule C.
@Alik
