Leaderboard

For MFS, they either both itemize or they both use the standard deduction. When you run the MFS calculations, from what you described with the husband paying the mortgage from an account solely in his name, he would get the entire interest deduction, and she would have to itemize even though the standard is higher. If you are still using Drake, in order for it to properly analyze joint vs separate returns, I believe you must have three separate input screens (and please make sure that the program doesn't show one itemizing and the other using the standard): one for the mortgage interest and any other potential deductions paid solely by the husband with "T" indicated at the top one for any potential itemized deductions paid solely by the spouse with "S" and a third one for any potential itemized deductions paid jointly with "J" Please watch for the state impact as well when presenting them with which filing status provides the best overall choice.

If one person itemizes on MFS returns, they both need to even if other spouse is less than standard deduction.

It depends the facts and circumstances. Is it a sporadic activity vs trade or business conducted on a regular basis? Four times a year for three years most likely will not pass the sporadic test. I don't think you will find an authoritative cite to treat it other than SE.

I had one of these for years, because they both refused to file with each other's accountants. My client always got the short end of the stick because she owned the home and paid all of the expenses. He had nothing to deduct. Dear friend of ours who has passed away. He could not take the standard deduction because she itemized.

Always check MFJ vs MFS. Your software does all the heavy lifting if you entered all income and expenses as J or T or S. Don't forget to consider the cost of 2 returns.