Move from sole-proprietor to qualified joint venture

Forum|Forum|1 year ago
February 19, 2025
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Me and my spouse meet the requirements for a qualified joint venture. I have been filing as a sole proprietor for several years and I've very comfortable and familiar with how to enter all tax info. I found some info about entering "form mode" and changing the schedule C to a joint venture. When I go back to step-by-step mode, it tells me I should be filing as a partnership. Do I just ignore that and continue like normal? Are there additional things I must do to make this legit for the IRS. I'm very cautious and really don't want any tax head aches. Bottom line question, Do i click the joint venture box and that's it? Continue through Turbo tax like normal?

TurboTax Home & Biz Windows

DavidD66

The only thing you have to do to make the Qualified Joint Venture election is to divide up all items of income, gain, loss, deduction, and credit between you and your wife (in accordance with each of your respective interest in the joint venture (doesn't have to be 50 - 50). Then each of your file a separage Schedule C and SE. If you are using TurboTax Desktop you can click on the Joint Venture box, and the program will split all of your income, expenses, etc. 50 -50.

Is your business operating under an LLC? If so, you cannot be Qualified Joint Venture. Only businesses that are owned and operated by spouses as co-owners (and not in the name of a state law entity) qualify for the election. You cannot be an LLC or LLP, or LP.

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Pitch-Black-ForestAuthor

I am using desktop. I see when i select "operated jointly" box, a second Schedule SE (SE-T and SE-S) is made with everything halved. I still only see 1 Schedule C however. Also, All income is reported by 1099's is under my name only. No issues there?