How do I enter a qualified joint venture on a married filing joint individual return?
Report a qualified joint venture on separate taxpayer and spouse Schedules C or F, and Schedules SE as applicable; or if a rental real estate business, on separate E screens.
Do not select J in the TSJ field.
- For screen C and screen F, a J selection is not valid. The software will not generate two separate schedules based on that selection, but rather a single schedule with the primary taxpayer's name. This will also generate note 053 or 407 in view mode. Entering family health coverage on a C or F screen with a J selection will produce note 343 in view mode. Select T or S on the screen and make applicable entries.
- For screen E, enter each spouse's appropriate share of the income, gain, loss, deduction, and credit attributable to a rental real estate business on a separate E screen for the same property and mark the Qualified Joint Venture option. Use a T or S selection to help you keep track of which taxpayer's interest is displayed on each E screen (and also for splitting the return, should you do that later).
- IRS instructions for Schedules C, E, and F require that both spouses:
- materially participate in the business (see Material participation, later, in the instructions for line G),
- are the only owners of the business, and
- file a joint return for the tax year.
- Treatment of a husband-wife business as a qualified joint venture is an election that persists until ended by certain conditions.
For more information, see "Qualified Joint Venture" in the Instructions for Schedule C, Instructions for Schedule E. or Instructions for Schedule F.