How do I file schedule c for husband and wife LLC in community property state?

jojobird1

We have a single member LLC (according to the IRS EIN filing) for a husband and wife LLC in a community property state. How do I file this on a schedule c? Do I need two schedule Cs? We are 50-50 owners. All income, expenses, and self employment tax should be equal. The business has many vehicles (car rental), and I don't want to manually enter everything twice (assets/depreciation, etc.) if avoidable.

KristineS

Hi jojobird1 - thanks for writing in.

It sounds like you may qualify to elect to be treated as a Qualified Joint Venture (QJV).

"Married taxpayers who wholly own an LLC in a community property state will not have to file a partnership return if the business is a qualified entity and they treat it as a disregarded entity." You can read more on this here.

You will create two Schedule(s) C, one for you, and one for your husband, splitting income and expenses 50/50. You may need to enter all information twice. There's no way around that. No way to enter once and split it if you would like to use the QJV option.