CA Qualified joint venture 568?

[gokuls]

Hi, 

My wife and I own a business, and we decided to file as Joint venture since we live in one of the community state and we file joint. Based on some of the other threads we have divided the all the income, loss in Schedule C for federal, but not sure how do we file the 568 for CA now. 

Should it be disregarded entity or partnership?

Also we have the TurboTax Home and Business, thought this is good enough since we are filing as Joint venture.  Home and Business does have a Form 568 for Single Member LLC, can we use this, since for federal we are going Joint venture?

[DianeC958]

You can file in California as a disregarded entity.  Since you live in a community property state half of the business belongs to your wife under those rules.

The purpose in filing two Schedule Cs for the Federal is if there is income and Social Security and Medicare tax is paid on the income by filing two Schedule Cs each person gets credit for the amount paid of Social Security and Medicare tax paid on the income for the Schedule C that is  filed using their Social Security number.

What is a Qualified Joint Venture?

[gokuls]

So should there be two 568 or single one?

I see someone had similar question, but not answered yet. 

https://ttlc.intuit.com/community/business-taxes/discussion/how-to-efile-form-568-for-a-husband-wife...

[DianeC958]

Just one.  The point is that for California since it is a community property state even though you file just one form 568 your spouse owns half of everything you own so there is no need to file a second form 568.

[gokuls]

Thank you.

Is there any selection need to be done on the single 568 to show its a joint venture? Otherwise how would FTB know its a joint venture and only half is reported? 

[DianeC958]

For the form 568 you need to report all of the income and expenses for the business not just half.  The reason that you only need to file one form is because your spouse automatically owns half of the business since you live in a community property state.

@gokuls

[gokuls]

But because I'm filing two Schedule C(dividing income and expense) for Federal, TT Home & Bussiness only shows half of the income and expense one one of the 568.