a qualified joint venture> The code lists three requirements:
(2) QUALIFIED JOINT VENTURE- For purposes of paragraph (1), the term
"qualified joint venture" means any joint venture involving the conduct
of
a trade or business if--
(A) the only members of such joint venture are a husband and wife,
(B) both spouses materially participate (within the meaning of
section 469(h) without regard to paragraph (5) thereof) in such
trade
or business, and
(C) both spouses elect the application of this subsection.
Chuck Warman, CPA
Wichita Falls, TX
-------------------------------
From: taxchat@yahoogroups.com [mailto:taxchat@yahoogroups.com] On Behalf Of
Donna J. Perrone
Sent: Monday, October 27, 2008 5:01 PM
To: taxchat@yahoogroups.com; 'TaxTalk Listserv Members'
Subject: [taxchat] Husband-Wife LLC & OIH
Husband and wife run a business together out of their home. Because they are
an LLC, they can't be a qualified joint venture and file on Sch C. I will
file a 1065 for 2008.
I think I know the answer to my question, but I would appreciate someone
confirming my thoughts. How should they take credit for office in home
expenses for the business? Should we just calculate what the appropriate
amounts should be, and have them write a check out of the business to
reimburse themselves? And when would be the best time to do this?
Quarterly? And what about for the 4th quarter? If the payment is made in
January (they are cash basis), that would be taken on next year's return.
Comments are appreciated.
Donna
Donna J. Perrone, EA
East Haven, CT
203-469-4939
203-468-2038 fax
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------------------------------------
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