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NO, IT'S NOT ANOTHER NAME FOR 'MARRIAGE'
April 02, 2008
Roger McEowen has published "The Spousal Qualified Joint Venture as a Planning Tool" at the Iowa State University Center for Agricultural Law and Taxation site. It tells how the new rules that enable spouses to not use a partnership return to report joint business income can be used in farm reporting. From his summary:
The QJV election can be used to simplify the tax reporting requirement for certain spousal businesses thatvwould otherwise be required to file as a partnership. That includes spousal farming operations where each spouse qualifies as a separate person for payment limitation purposes. In those situations, there appears to be no good-faith argument that can be made for claiming that self-employment tax should not apply to each spouse’s share of income from the operation. But, for rental real estate activities that are conducted in a spousal LLC, the QJV election should not be made and a partnership return filed to avoid the imposition of self-employment tax.
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