The IRS defines a Qualified Joint Venture as “a joint venture that conducts a trade or business where (1) the only members of the joint venture are a married couple who file a joint return, (2) both spouses materially participate in the trade or business, and (3) both spouses elect not to be treated as a partnership. A qualified joint venture, for purposes of this provision, includes only businesses that are owned and operated by spouses as co-owners, and not in the name of a state law entity (including a limited partnership or limited liability company).”
A Qualified Joint Venture allows spouses to avoid filing a Form 1065 (Partnership Return).
When a married couple indicates a Qualified Joint Venture election, all income, gain, loss, deduction, and credit will be split 50/50 between both spouses and reported on separate Schedule C Forms. If the participation between spouses is not a 50/50 split, it is recommended that both spouses file their own individual Schedule C’s.
You may read more about the Qualified Joint Venture election, here.
How do I make this election within the program?
To report a Qualified Joint Venture within the program, please follow the steps below:
- Federal
- Income
- Profit or Loss from Business (Edit Schedule C)
- Questions About the Operation of your Business.
- Check here for Qualified Joint Venture. (Ownership between Taxpayer and Spouse must be 50/50)