Page 189 - Individual Forms & Instructions Guide

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• Form 4797 to report sales, to IRS.gov/Trucker for the most recent are based. In most cases, this election
exchanges, and involuntary conversions developments. will not increase the total tax owed on
(not from a casualty or theft) of trade or Information returns. You may have to the joint return.
business property. file information returns for wages paid Jointly owned property. You and your
• Form 6198 to apply a limitation to to employees, and certain payments of spouse must operate a business to make
your loss if you have a business loss and fees and other nonemployee compensa- this election. Do not make the election
you have amounts invested in the tion, interest, rents, royalties, real estate for jointly owned property that is not a
business for which you are not at risk. transactions, annuities, and pensions. trade or business.
• Form 6252 to report income from See Line I, later, and the 2022 General
an installment agreement. Instructions for Certain Information Re- Only businesses that are owned
• Form 7205 is used to claim the turns for details and other payments that ! and operated by spouses as
IRC 179D deduction for qualifying may require you to file a Form 1099. CAUTION co-owners (and not in the name
energy efficient commercial building of a state law entity) qualify for the elec-
If you received cash of more than
expenses. $10,000 in one or more related transac- tion. Thus, a business owned and oper-
• Form 8582 to apply a limitation to ated by spouses through a LLC does not
your loss from passive activities. tions in your trade or business, you may qualify for the election of a qualified
have to file Form 8300. For details, see
• Form 8594 to report certain joint venture.
purchases or sales of groups of assets Pub. 1544. Making the election. To make this
that constitute a trade or business. Business Owned and election, divide all items of income,
• Form 8824 to report like-kind Operated by Spouses gain, loss, deduction, and credit attribut-
exchanges. able to the business between you and
• Form 8829 to claim actual Generally, if you and your spouse joint- your spouse based on your interests in
expenses for business use of your home. ly own and operate an unincorporated the business. Each of you must file a
• Form 8960 to pay Net Investment business and share in the profits and los- separate Schedule C or F. Enter your
Income Tax on certain income from ses, you are partners in a partnership, share of the applicable income, deduc-
your passive activities. whether or not you have a formal part- tion, or (loss) on the appropriate lines of
• Form 8990 to determine whether nership agreement. You generally have your separate Schedule C or F. Each of
your business interest deduction is to file Form 1065 instead of Schedule C you may also need to file a separate
limited. for your joint business activity; howev- Schedule SE to pay self-employment
• Form 8995 or 8995-A to claim a er, you may not have to file Form 1065 tax. If the business was taxed as a part-
deduction for qualified business income. if either of the following applies. nership before you made the election,
• You and your spouse elect to be
Single-member limited liability com- treated as a qualified joint venture. See the partnership will be treated as termi-
pany (LLC). Generally, a single-mem- Qualified Joint Venture next. nating at the end of the preceding tax
ber domestic LLC is not treated as a sep- year. For information on how to report
• You and your spouse wholly own
arate entity for federal income tax the unincorporated business as commun- the termination of the partnership, see
purposes. If you are the sole member of ity property and you treat the business as Pub. 541.
a domestic LLC, file Schedule C (or a sole proprietorship. See Community Revoking the election. The election
Schedule E or F, if applicable) unless Income, later. can be revoked only with the permission
you have elected to treat the domestic Otherwise, use Form 1065. See Pub. 541 of the IRS. However, the election re-
LLC as a corporation. See Form 8832 for information about partnerships. mains in effect only for as long as you
for details on making this election and and your spouse continue to meet the re-
for information about the tax treatment Qualified Joint Venture quirements to make the election. If you
of a foreign LLC. and your spouse fail to meet the require-
Single-member LLCs with employees. You and your spouse can elect to treat ments for any year, you will need to
A single-member LLC must file em- an unincorporated business as a quali- make a new election to be treated as a
ployment tax returns using the LLC's fied joint venture instead of a partner- qualified joint venture in any future
name and employer identification num- ship if you: year.
ber (EIN) rather than the owner's name • Each materially participate in the Employer identification number
and EIN, even if the LLC is not treated business (see Material participation, lat- (EIN). You and your spouse do not
as a separate entity for federal income er, in the instructions for line G), need to obtain an EIN to make the elec-
• Are the only owners of the busi-
tax purposes. ness, and tion. But you may need an EIN to file
Heavy highway vehicle use tax. If you • File a joint return for the tax year. other returns, such as employment or ex-
use certain highway trucks, truck-trail- cise tax returns. To apply for an EIN,
ers, tractor-trailers, or buses in your Making the election will allow you to see the Instructions for Form SS-4 or go
trade or business, you may have to pay a avoid the complexity of Form 1065, but to IRS.gov/EIN.
federal highway motor vehicle use tax. still give each of you credit for social se- Rental real estate business. If you and
See the Instructions for Form 2290 to curity earnings on which retirement ben- your spouse make the election for your
find out if you must pay this tax and go efits, disability benefits, survivor bene-
fits, and insurance (Medicare) benefits rental real estate business, you must
each report your share of income and

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