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Posted by Harlan Lunsford on April 9, 2008, 8:04 pm
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Paultry wrote:
> Prior discussion of this issue here:
>
>
http://groups.google.com/group/misc.taxes.moderated/browse_thread/thread/e8da770a41f77136/aae01890bac66be8?lnk=gst&q=joint+venture#aae01890bac66be8
>
>
> IRS guidance here:
>
> http://www.irs.gov/businesses/small/article/0,,id=177376,00.html
>
> The "Small Business and Work Opportunity Tax Act of 2007" allows husband
> and wife small business owners to elect to treat their business as a
> joint venture rather than as a partnership. I'm helping husband and
> wife joint filers, who, like many married couples, own and operate their
> farm together, but, to avoid the expense and complexity of a
> partnership, have historically reported farm income, expenses, and
> profit on Schedule F and Schedule SE in the husband's name and social
> security number.
>
> The new law was apparently intended to provide the secondary spouse a
> share of the farm's income and social security credits without the need
> for a Form 1065 and K-1s - a good idea to resolve a long standing
> problem. However, the tax prep software I use does not provide an
> automated method to split depreciation expense between husband and wife.
> Creating a new Schedule F for the wife requires the creation of a new,
> pro-rated depreciation worksheet for each farm asset (in this case, over
> 75 items), and editing of the husband's 75+ depreciation worksheets to
(balance snipped for brevity's sake.
I can sympathize, or empathize with you. I have a husband and wife
client down in Dothan with an antique shop and my software, TAxwise,
doesn't have the capability so I had to do it the old fashioned way,
like you did.
Since this is new, I suspect software companies will work on it before
next year, though.
Your case though looks to be a good candidate for printing the return
and one form 4562, and then overridden with a second one created. AFter
all, those convenient software asset worksheets don't go with the return
anyway.
ChEAr$$$,
Harlan Lunsford, EA n LA
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