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Level 5
December 6, 2019
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Husband and Wife Real Estate business. Wife gets the 1099 in her name

  • December 6, 2019
  • 2 replies
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Wife gets the real estate 1099 in her name as a sole P.

Husband is her helper with no pay.  Both of them drive their vehicles to show properties etc.

So, put the husbands mileage on the wife's Sch. C since he has no income?  She did not reimburse him for anything.

Thanks in Advance!

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Best answer by TaxGuyBill

Just because the 1099-MISC is only in one name does not necessarily mean it is only the wife's income.  You need to determine if they each have a separate business, or if they have a Qualified Joint Venture (or Partnership).  You already said it is a "husband and wife" business, an it seems like the husband is showing properties without the wife.  That seems like he is part of the business, and it likely could be a Qualified Joint Venture (or Partnership).

If both have separate business, or if it is a Qualified Joint venture, a Schedule C should be filed for each of their incomes.  Obviously a Partnership would require a separate tax return.


Because the 1099-MISC is only in one name, for most Qualified Joint Ventures I start off reporting everything one Schedule C.  When that is finished, I look at the profit and multiple that by 50% (or whatever their ownership percentage is) and on the wife's Schedule C I enter that as an "other" expense called "QJV:  Allocated to spouse".  Then I do the second Schedule C for the other spouse showing that income (and no expenses, because they are all on the other Schedule C).


2 replies

Level 15
December 6, 2019

Just because the 1099-MISC is only in one name does not necessarily mean it is only the wife's income.  You need to determine if they each have a separate business, or if they have a Qualified Joint Venture (or Partnership).  You already said it is a "husband and wife" business, an it seems like the husband is showing properties without the wife.  That seems like he is part of the business, and it likely could be a Qualified Joint Venture (or Partnership).

If both have separate business, or if it is a Qualified Joint venture, a Schedule C should be filed for each of their incomes.  Obviously a Partnership would require a separate tax return.


Because the 1099-MISC is only in one name, for most Qualified Joint Ventures I start off reporting everything one Schedule C.  When that is finished, I look at the profit and multiple that by 50% (or whatever their ownership percentage is) and on the wife's Schedule C I enter that as an "other" expense called "QJV:  Allocated to spouse".  Then I do the second Schedule C for the other spouse showing that income (and no expenses, because they are all on the other Schedule C).


abctax55
Level 15
December 6, 2019
@TaxGuyBill - that is exactly how I handle it (and I'm finishing off one tonight...)
HumanKind... Be Both
Level 7
December 6, 2019

That's what I do; all expenses on 1 Sched C.  

My guys are smart:  Both have real estate licenses.  They net about $200,000 a year.  Their Broker alternates years: Odd years the 1099 is to H; even years to W, so they both get credit for future SocSec.  Each year I flip the Sched C from 1 spouse to the other. 

Level 15
December 6, 2019
Personally, I think that is bordering on tax fraud to avoid SE tax.  If both spouses have a business, EACH should be reporting their share of the business.