RE: [taxchat] Husband-Wife LLC & OIH

Arnie,

 

They are an LLC and can't file 2 Sch C's.  They have to file the 1065.  I would think that this should be a fairly common situation.....just not one I've handled before.

 

 

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.

 

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From: taxchat@yahoogroups.com [mailto:taxchat@yahoogroups.com] On Behalf Of Arnold M. Socol
Sent: Tuesday, October 28, 2008 2:02 PM
To: taxchat@yahoogroups.com
Subject: Re: [taxchat] Husband-Wife LLC & OIH

Donna,

 

I was waiting for someone smarter than me to answer your question - but why not 2 Sch C's allocated between H & W instead of 1065?

 

See Pub 587 for all your answers and more. www.irs.gov  Search - Pub 587.

 

Arnie

 

 

----- Original Message -----

From: Donna J. Perrone

To: taxchat@yahoogroups.com ; 'TaxTalk Listserv Members'

Sent: 10/27/2008 6:01 PM

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 qualifed 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

 

 

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.

 

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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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