3605
The following diagnostic is generating:
Schedule C #{PrefixNum}: According to federal Schedule C instructions, if the taxpayer and spouse jointly own and operate a business, they are considered partners in a partnership and should file a partnership return. However, an election may be made under IRC Section 761(f) to file two separate Schedule's C instead of a partnership return. All income and expense items must be allocated to each taxpayer according to the ratio of ownership. If you wish to make this election, a second Schedule C and related forms must be entered in the program to follow the reporting guidelines. However, taxpayers that wholly own a business as community property under the community property laws of a state, foreign country, or U.S. possession, may treat the business as a sole proprietorship or a partnership. Refer to Schedule C and/or IRS Publication 541 for more information.
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