If a husband and wife operate a business together WITHOUT being an LLC, they
can make the election to be a QJV and file 2 Sch C's, not a 1065.
Donna J. Perrone, EA
East Haven, CT
203-469-4939
203-468-2038 fax
IRS Circular 230 Disclosure: Unless expressly stated otherwise, any tax
advice contained herein, including attachments and enclosures, is not
intended or written to be used, and may not be used, for the purpose of (1)
avoiding tax-related penalties under the Internal Revenue Code or applicable
state or local tax law provisions, or (2) promoting, marketing or
recommending to another party any tax-related matters addressed herein.
-----Original Message-----
From: taxchat@yahoogroups.com [mailto:taxchat@yahoogroups.com] On Behalf Of
Chuck Warman
Sent: Tuesday, October 28, 2008 4:20 PM
To: taxchat@yahoogroups.com
Subject: RE: [taxchat] Husband-Wife LLC & OIH
Thanks, John, but I don't understand this part of the GearUp quote:
"Therefore, a business owned and operated by the spouses through a Limited
Liability Company, general partnership, or limited partnership does not
qualify for the election."
What other kinds of joint ventures are there? It seems to me to be saying
that NO h/w partnership of any kind can make the election. But that would
seem to directly contradict the Code language.
I'm heading to a GearUp seminar tonight. I'll ask tomorrow.
Thanks,
Chuck
*************************
From: taxchat@yahoogroups.com [mailto:taxchat@yahoogroups.com] On Behalf Of
John Stevens, Equi-Tax
Sent: Tuesday, October 28, 2008 3:09 PM
To: taxchat@yahoogroups.com
Subject: RE: [taxchat] Husband-Wife LLC & OIH
Chuck,
Here's from the latest Gear Up manual on entities. It's not authority but
indicates where the IRS is heading re whether an H/W LLC can file 2 Schedule
C's:
"NEW DEVELOPMENT: While the IRS has yet to issue formal guidance on this
change, information on its website reveals that the IRS' position is that
the escape from partnership treatment for spousal business is limited in
scope. It does not apply to spouses who operate in the name of a state law
entity. The election can be made only for a business operated by spouses as
co-owners that is, or should otherwise be, taxed informally (my emphasis) as
a partnership. Therefore, a business owned and operated by the spouses
through a Limited Liability Company, general partnership, or limited
partnership does not qualify for the election."
Based on that it appears that IRS is taking the position that H/W LLC's can
elect 2 Schedule C's. Maybe we won't know for sure until after IRS issues
formal guidance and someone challenges it.
John Stevens, EA
Stevens Tax & Accounting, Inc., dba Equi-Tax 1870 - 50th St. E., Suite 8
Inver Grove Heights, MN 55077 651-773-5000 FAX 651-457-4529
equitax@unique-software.com www.equitax.net
________________________________________
From: taxchat@yahoogroups.com [mailto:taxchat@yahoogroups.com] On Behalf Of
Chuck Warman
Sent: 10/28/2008 2:28 PM
To: taxchat@yahoogroups.com
Subject: RE: [taxchat] Husband-Wife LLC & OIH
I still can't find where it says that in Sec 761, where qualified joint
ventures are defined.
Chuck
From: taxchat@yahoogroups.com [mailto:taxchat@yahoogroups.com] On Behalf Of
Donna J. Perrone
Sent: Tuesday, October 28, 2008 2:14 PM
To: taxchat@yahoogroups.com
Subject: RE: [taxchat] Husband-Wife LLC & OIH
Lynne,
Federal law says you can't do it.....
Donna J. Perrone, EA
East Haven, CT
203-469-4939
203-468-2038 fax
IRS Circular 230 Disclosure: Unless expressly stated otherwise, any tax
advice contained herein, including attachments and enclosures, is not
intended or written to be used, and may not be used, for the purpose of (1)
avoiding tax-related penalties under the Internal Revenue Code or applicable
state or local tax law provisions, or (2) promoting, marketing or
recommending to another party any tax-related matters addressed herein.
________________________________________
From: taxchat@yahoogroups.com [mailto:taxchat@yahoogroups.com] On Behalf Of
Lynne Ayton
Sent: Tuesday, October 28, 2008 2:53 PM
To: taxchat@yahoogroups.com
Subject: Re: [taxchat] Husband-Wife LLC & OIH drake allows you to put J on a
sched c, & the 8829 automatically goes to the sched c also, but will create
1 SE's for each spouse. WI doesnt say it "wont" allow h/w llc's, so my
guess is, you can file a joint sched C if state law allows it.
lynne
Mel Wolfson wrote:
I believe that an LLC can not elect to be treated as two Schedule Cs.
------------------------------------
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IRS Circular 230 Disclosure: Unless expressly stated otherwise in this transmission, any tax advice contained herein, forwarded with or attached to this message was not and is not intended to be used, nor may it be relied upon or used, by any taxpayer for the purpose of (1) the avoidance of any tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions, or (2) promoting, marketing or recommending to another party any tax transaction or tax-related matters that may be addressed herein.
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