Quickbooks, Bookkeeping and Accounting Blog

Unincorporated businesses jointly owned by married couples are normally classified as partnerships for Federal tax purposes. However, per the Small Business and Work Opportunity Tax Act of 2007 (Public Law 110-28) a “qualified joint venture,” whose only members are a married couple filing a joint return, can elect not to be treated as a partnership for Federal tax purposes in calendar year 2007 and subsequent tax years.

For more information, see Election for Husband and Wife Unincorporated Businesses on the IRS’s website.