MarilynG1
Expert Alumni

Business & farm

If you are a husband/wide LLC partnership and live in a Community Property state, you could consider filing two Schedule C's (one for each of you).  You would not need to file the 1065 return and issue K-1's in that case

 

You would then also be able to claim the Home Office Deduction.  You can use the % of Square Footage or the Rooms Method to calculate your Home Office %. The most exact way to calculate the business percentage of your house is to measure the square footage devoted to your home office as a percentage of the total area of your home. If the office measures 150 square feet, for example, and the total area of the house is 1,200 square feet, your business percentage would be 12.5%.

 

An easier calculation is acceptable if the rooms in your home are all about the same size. In that case, you can figure out the business percentage by dividing the number of rooms used in your business by the total number of rooms in the house.  Here's more info on the Home Office Deduction. 

 

Here's detailed info on Business Owned by Married Couple and more info from the IRS on Election for Married Couples Unincorporated Business.

 

@knead2 

@bblyth 

 

 

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