Husband and wife Partnership filing as sole proprietors

[gfpstaxes]

I understand that a husband and wife who have a Partnership can file as sole proprietors if they are in a community property state and file 2 schedule  C's .

My question is do they need to write a letter to the IRS to inform them of their intention or can they just file their first tax return on a 1040?

Thanks, Ky

[TaxGuyBill · Accepted solution]

To file as a "Qualified Joint Venture" (not sole proprietors) on two Schedule Cs they can just file the Schedule Cs.  There is no need to notify the IRS.

https://www.irs.gov/businesses/small-businesses-self-employed/election-for-married-couples-unincorpo...

As a side note, a Qualified Joint Venture can be done in any State.  The restriction is that if they are the only two members of an LLC, then that can only be done in a Community Property State.

[abctax55]

Does everyone agree with Bill <w> ?

(I do... 🙂

[sjrcpa]

I do, too.