How to 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.

• 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 Return Note 053 or 407 in View /Print mode. Entering family health coverage on a C or F screen with a J selection will produce note 343 in View/Print 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).

Note that:

• 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 relevant instructions:

• Schedule C

• Schedule E

• Schedule F