Schedule C

[mcb39]

What am I missing? In Wisconsin, Schedule C can be split between spouses so that they both have income and both have SE. This negates the necessity of filing a Partnership for a small business. Some of my clients have done it this way for years. Now, all of a sudden, the "joint" box is missing from the choices at top of Sch C, or I am not seeing it. HELP!!!!! PS....This also gives them the married couple credit on the WI return. These are in cases where both spouses are actively involved in the business....

[elfling]

I ran into the same problem yesterday with a Sch F. Horse breeding and boarding ranch owned and operated jointly by spouses but checkbox is missing from top of that form also. I did not find a way around except to override wherever necessary. Crazy-looking pink boxes but at least the return is complete and in the same pattern as years past.

Elfling

[RoyDaleOne]

I read somewhere that option is no longer legal. Got me.

[mcb39]

I read somewhere that option is no longer legal. Got me.

This is Community Property state. I will check it out. Only option will be to create 1 schedule C and then split it between 2. That will be an extreme pain as some of these have been set up this way for years. Another reason to split is to allow both to contribute to IRA. PUT THE JOINT CHECK BOX BACK!!!!!!!!! :mad:

[mcb39]

Pub 17, Page 86: Qualified Joint Venture: If you and your spouse each materially participate as the only members of a jointly owned and operated business, and you file a joint return for the tax year, you can make a joint election to be treated as a qualified joint venture instead of a partnership. To make this election, you must divide all items of income, gain, loss, deduction, and credit attributable to the business between you and your spouse in accordance with your respective interests in the venture. Each of you must file a separate Schedule C or Schedule C-EZ. Oh, please, we are not talking about anything more than a small family business here, where the spouses are contributing equal time, effort, etc. In WI, it wouldn't even matter if it was equal. These businesses do not justify the work or cost of filing a partnership. Please Give Us Back the Box to Check! :angry:

[JohnH]

If ATX won't provide the check box, and if you have several clients in this situation, maybe it would be helpful to design an Excel spreadsheet to divide the income & expenses automatically. All you'd need would be 3 columns (maybe a 4th for proofs). After setting up the worksheet to mirror the line order for the Schedule C, you're ready to go. Enter the applicable percentage for each spouse in a cell at the top (50% in most cases, but I'd use the field just in case I had a situation that is unique), then set each column to allocate the total expense for each line item to the respective spouse. Enter the amounts in the first column and let the spreadsheet do the work, then transfer the amounts to the separate Schedule C's. Not as handy as checking a box on the return, but still better than paper & pencil.

It's probably possible to create the worksheet within ATX, although I prefer to work directly in Excel because the ATX custom worksheets are usually missing some feature I like to use.

[mcb39]

Thanks a lot, John. I am talking about really small businesses, AGI of $30000 or less and 50/50 split between husband and wife. I guess I can do the splits, but upsets me because ATX has been working extremely well for me up until I stumbled on this last night. Thanks again.

[kcjenkins]

Yes, it's a pain, but I believe it was the IRS that made them remove that option, because too many [in their opinion] were using it that were not in CP states. So now, even in CP states, you have to do two Sch Cs, not just two SEs.

[mcb39]

Yes, it's a pain, but I believe it was the IRS that made them remove that option, because too many [in their opinion] were using it that were not in CP states. So now, even in CP states, you have to do two Sch Cs, not just two SEs.

Thanks KC for joining the discussion. I will resign myself to doing the splits. Odd, though, that they have all those other new options to check on the top of the Sch C, such as for rental. Too bad they couldn't have added this one too. I have read all the instructions for the C and they do specify that two Cs need to be filed as well as two SEs.; so we win some, we lose some. I'm not going to short change my clients when it isn't feasible or affordable to do a 1065.