topic My wife is my business partner but she was active on the business only for a portion of a year. Is there a way to indicate only a portion of the income as joined? in Business & farm

My wife is my business partner but she was active on the business only for a portion of a year. Is there a way to indicate only a portion of the income as joined?

mironsh — Tue, 04 Jun 2019 20:00:07 GMT

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!

Yes, you will file two separate Schedule C's, one for you...

MarilynG — Tue, 04 Jun 2019 20:00:08 GMT

Yes, you will file two separate Schedule C's, one for you and one your spouse, even if you are in business together.

Enter the income and expense belonging to each person for their % of ownership of the business. If you don't have an official partnership agreement stating % of business owned by each of you, you can split business income and expenses 50/50 (or whatever is agreed upon by you both).

Here's helpful info for you:

https://blog.turbotax.intuit.com/income-and-investments/business-income/what-is-a-qualified-joint-ve...