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.
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
If you've already entered self-employment work and need to enter more, select Add another line of work.
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
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.
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!
No, each spouse must include a separate Schedule C reflecting his/her share of the income and deductions on their joint tax return.
Here is a couple FAQs:
What is a Qualified Joint Venture? - The TurboTax Blog - Intuit