de minimis safe harbor for 2 Schedule C businesses

Forum|Forum|1 year ago
October 10, 2024
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Preparing 1040 for TY2023, joint return, each of us has a separate Schedule C business. Last year (TY2022), each of us made separate "de minimis" elections for our separate Sch C businesses (using TaxAct), and the software generated separate election statements. With TurboTax Home&Business (desktop download, Win 10, latest update 10/1/24) for TY2023, it only generates one "joint" election statement (with just my SSN), and includes no business names or Sch C reference(s) on the statement. Is there a way to generate separate ones (that also indicate the business it's for, with the appropriate owner's SSN)? Have the regulations changed regarding this?

TurboTax Home & Biz Windows

Best answer by AmeliesUncle

In my opinion, TurboTax does it wrong. While it does not need the business name or EIN, it should have both of your Social Security Numbers on it.

But I agree with Tagteam that the IRS probably won't really care as long as both names are on it.

If only one person wants to make the election, I edit it so it only has one name on it and their SSN number.

To explain why I think TurboTax is wrong: The Regulation says that for a consolidated corporate return (one "parent" tax return that covers several "member" corporations), the election needs to state the name AND identification number of each "member" corporation. To me, that means you can't only use the 'first' Social Security Number on your Joint tax return - It should have the Social Security Number of all 'members' of the tax return.

Anonymous_

Employee

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bruce93Author

Thanks for your quick reply. My understanding of the de minimis statement rules is that it must list the name, address, and Tax ID of the business. Thus, it would seem that separate statements would be required. Is that correct?