Business Income What is a Qualified Joint Venture? Read the Article Open Share Drawer Share this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Pinterest (Opens in new window)Click to print (Opens in new window) Written by Ginita Wall Published Sep 8, 2017 2 min read QJV may sound like a shopping network, but it’s actually a handy tax provision that allows mom-and-pop businesses to simplify their tax filing. If you are in business with your significant other or know someone who is, listen up! QJV stands for “Qualified Joint Venture”, and is just a fancy IRS term for an unincorporated business that is jointly owned and run by a married couple. Ordinarily, a jointly owned unincorporated business would have to file a partnership return, but if the partners are married, they can file as a sole proprietorship with their personal tax return. This rule does not apply to a business that is formed as a corporation or a limited liability company (LLC). If that’s the case, you’ll need to file a corporate tax return or a partnership tax return. There is an exception to this one. If the LLC is operated by spouses in a community property state, they are allowed to do simplified filing as a Qualified Joint Venture. We’ve already covered two of the ways you qualify to be a Qualified Joint Venture – the parties must be married and the business must be unincorporated – however, here are a few more: The couple must share net income and deductions in the same proportion as each spouse’s interest in the business. Their respective percentages of the business are determined by the partnership agreement. There must be no other partners in the business. Both spouses must materially participate in the business. Each spouse must include a separate Schedule C reflecting his/her share of the income and deductions on their joint tax return. Each spouse must include a separate Schedule SE that shows that spouse’s self-employment income with their joint tax return. If the business has employees, then one of the spouses must be designated as the party responsible for reporting and paying employment taxes for those employees. There’s no formal election required to file as a Qualified Joint Venture. If you qualify as a QJV, you simply include Forms Schedules C and SE with your personal tax return instead of corporate or partnership tax returns. Unless you have employees, there is no need to apply for an Employer Identification Number (EIN). Don’t worry about knowing these rules. TurboTax Self-Employed will ask you simple questions and give you the tax deductions and credits you are eligible for. Previous Post How Do I Amend My Previous Quarterly Estimated Tax Payment? Next Post Self-Employed for a Few Months? What You Should Know Written by Ginita Wall More from Ginita Wall Leave a Reply Cancel reply Browse Related Articles Taxes 101 What is a Tax Write-Off? (Tax Deductions Explained) Tax Deductions and Credits What is an Earned Income Tax Credit & Do You Qualif… Breaking News IRS Announced Significant Inflation Adjustments for Tax… Life Should Married Couples File Jointly or Separately? Family Love and Taxes: Tax Benefits of Marriage Tax Deductions and Credits EITC Awareness Day: Common Questions About Earned Inco… Tax Planning Do I File Jointly if I’m Divorced or Separated During… Tax Deductions and Credits Tax Implications of Getting Married Taxes 101 Income Tax Filing Requirements Tax Deductions and Credits What is the Earned Income Tax Credit?