We have a partnership and I need to file two schedule C forms and two Schedule SE forms, is that possible in TurboTax?
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YES you do have to enter your's and spouse's 2018 k-1 info into the 2018 1040. there is only one SE form for each taxpayer. TT will calculate SE tax for each of you by combining the SE income from your individual K-1's with the SE income from your schedule C's make sure on each k-1 and schedule C tax you properly designate either taxpayer or spouse
TurboTaxDaniel V is saying that
if you are not an LLC you can elect to be a qualified joint venture for 2018 if you meet the rules
Definition of a Qualified Joint Venture
A qualified joint venture is a joint venture that conducts a trade or business where (1) the only members of the joint venture are a married couple who file a joint return, (2) both spouses materially participate in the trade or business, and (3) both spouses elect not to be treated as a partnership. A qualified joint venture, for purposes of this provision, includes only businesses that are owned and operated by spouses as co-owners, and not in the name of a state law entity (including a limited partnership or limited liability company) Note also that mere joint ownership of property that is not a trade or business does not qualify for the election. The spouses must share the items of income, gain, loss, deduction, and credit in accordance with each spouse's interest in the business. The meaning of “material participation” is the same as under the passive activity loss rules in section 469(h) and the corresponding regulations . Note that generally rental real estate income or loss generally is passive, even if the material participation rules are satisfied, and filing as a qualified joint venture will not alter the character of passive income or loss.
then no 1065 is required. you report the activity on schedule C (non-rental) or schedule E (rental) however, if your schedule c business and your "partnership" business are different activities you must file a schedule C/E for each taxpayer for each activity. the "partnership" profit/loss. just can't be split arbitrarily, one way is hours spent by each
not let's say the partnership is an LLC or limited partnership (LP). as stated above you would not be a qualified joint venture and a partnership return would be needed for 2018
in 2019 you could dissolve the LP or LLC. a final 2019 return would need to be filed say you terminate at the end of February 2019, the return (you would have to use 2018 forms) would be due 5/15/19.
you report the activity for the rest of the year on schedules c or e as appropriate
YES you do have to enter your's and spouse's 2018 k-1 info into the 2018 1040. there is only one SE form for each taxpayer. TT will calculate SE tax for each of you by combining the SE income from your individual K-1's with the SE income from your schedule C's make sure on each k-1 and schedule C tax you properly designate either taxpayer or spouse
TurboTaxDaniel V is saying that
if you are not an LLC you can elect to be a qualified joint venture for 2018 if you meet the rules
Definition of a Qualified Joint Venture
A qualified joint venture is a joint venture that conducts a trade or business where (1) the only members of the joint venture are a married couple who file a joint return, (2) both spouses materially participate in the trade or business, and (3) both spouses elect not to be treated as a partnership. A qualified joint venture, for purposes of this provision, includes only businesses that are owned and operated by spouses as co-owners, and not in the name of a state law entity (including a limited partnership or limited liability company) Note also that mere joint ownership of property that is not a trade or business does not qualify for the election. The spouses must share the items of income, gain, loss, deduction, and credit in accordance with each spouse's interest in the business. The meaning of “material participation” is the same as under the passive activity loss rules in section 469(h) and the corresponding regulations . Note that generally rental real estate income or loss generally is passive, even if the material participation rules are satisfied, and filing as a qualified joint venture will not alter the character of passive income or loss.
then no 1065 is required. you report the activity on schedule C (non-rental) or schedule E (rental) however, if your schedule c business and your "partnership" business are different activities you must file a schedule C/E for each taxpayer for each activity. the "partnership" profit/loss. just can't be split arbitrarily, one way is hours spent by each
not let's say the partnership is an LLC or limited partnership (LP). as stated above you would not be a qualified joint venture and a partnership return would be needed for 2018
in 2019 you could dissolve the LP or LLC. a final 2019 return would need to be filed say you terminate at the end of February 2019, the return (you would have to use 2018 forms) would be due 5/15/19.
you report the activity for the rest of the year on schedules c or e as appropriate
Your election will be next year. Your partnership return is already filed, so when you input your Schedules K-1, these will automatically transfer over to separate Schedules SE for the self-employment tax calculation.
But you are correct about the Qualified Joint Venture provision. (As I mentioned in my comment, if you are an LLC, you will have to dissolve the LLC to make the election to be treated as a Qualified Joint Venture). When you make this election, you can split the income/expenses by a reasonable percentage. (You may choose 50/50 if you contribute evenly). A little math is necessary: you figure out all of the income and expenses on one Schedule C, but you actually use two Schedules C to report on the return (1/2 of the amounts on one, 1/2 of the amounts on the other).
You won't use this this year, but you can plan to use it next year. Here is an IRS link to further assist you: Qualified Joint Venture
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