Qualified Joint venture, need 2 Schedules for each forms

Forum|Forum|2 years ago
March 11, 2024
5 replies
73 views

We have a family business and want to split our sole proprietor income/expenses with a qualified joint venture. We have a Schedule C and Schedule E. Can we proportionate Schedule E too? How we can have two Schedule Cs, Schedule Es, and Schedule SEs? There is only 1 schedule for each form.

VolvoGirl

Level 15

You need to manually add another Schedule C and E under the other person's name. I don't know how Schedule E works. I think that's by the property not the owner.

For Schedule C you would split up all the income and expenses and enter half on each Schedule C or whatever percentage you want. Be sure to assign each C to the right person. It will automatically create a Schedule SE for each person.

See this to add another Schedule C

https://ttlc.intuit.com/turbotax-support/en-us/help-article/import-export-data-files/enter-schedule-c/L5Fz3j5us_US_en_US

If you've already entered self-employment work and need to enter more, select Add another line of work.

VolvoGirl

Level 15

Here's some info I found...

IRS info on married joint venture

Election for Married Couples Unincorporated Businesses | Internal Revenue Service

Here are some posts about Qualified Joint Venture

https://ttlc.intuit.com/community/business-taxes/discussion/how-do-i-join-my-wife-s-existing-sole-proprietorship-to-form-qualified-joint-venture/00/3186853

dwalkerrus

Level 2

If you use TurboTax Desktop you can fill out one Schedule C using one of the spouses (does not matter which). Once the Schedule C is complete go to the Forms Mode, Go to Sch C and change the ownership question from Taxpayer or Spouse to Joint Venture. This creates one Sch C with both names and splits income on Sch SE, one for taxpayer and one for spouse. Thanks to JM for collaborating with me for this gem.

Pitch-Black-Forest

Level 2

Having separate Schedule-SE's and a single Schedule C with both names is ok? Everything I've been reading says to make a separate schedule C. If the IRS accepts this, it would definitely save a major headache of duplicating and halving. Can anyone vouch if they did this and it hasn't red flagged the IRS? Fingers crossed, you may have saved me a ton of time!