OT - New federal tax regs?

In preparation for doing my taxes 2007, I was re-reading the instructions for Schedule F and noticed that as of 2007 there is a new provision dealing with married couples and filing the Schedule F, something to do with a married couple being considered a partnership even if one was not formally established. They also talk about something called "exempt joint venture" and filing the Form 1065 instead of Schd. F. It certainly reads and sounds like tons more paperwork for just a simple husband and wife operation. The way around this SEEMS to be "married, filing separately" but that leads to other tax liability.

Thoughts? Opinions? Advice? I think many of us will have to deal with this one. Thanks in advance to all who respond.

I turned in my documentation as I have for the past years and she said nothing about anything changing.

I am married and we file a joint return. Our names are on the 1040 and the Schedule F is just part of it.

Mark

A. One of the "problems" they were trying to fix related to Social Security. If you split the income from a farm or other small business using that IRS partnership arrangement, both spouses can qualify for their own Social Security retirement and disability benefits.

B. Partnerships have many other useful applications if you want or need to allocate income or expenses or other things from a single business activity among a group of people.

Can a husband and wife run a business as a sole proprietor or do they need to be a partnership?

It is possible for either the husband or the wife to be the owner of the sole proprietor business. When only one spouse is the owner, the other spouse can work in the business as an employee. If a married couple who file a joint tax return elect to conduct their business activities as a qualified joint venture, (a trade or business entity in which the husband and wife materially participate in such venture), the spouses must divide the items of income, gain, loss, deduction, credit and expenses in accordance with their respective interests in such venture. This is effective for taxable years beginning after December 31, 2006. Also, see Rev. Proc. 2002-69 for Special Rules for Spouses in Community States.

References:

Publication 334, Tax Guide for Small Business Publication 541, Partnerships Taxpayer Protection Act of 2007

Sir, the problem with you response is that it was simple, clear, and straight to the point. That kind of thinking can't and won't be tolerated. It would streamline the process, cause less paperwork, and certainly make your lives easier, so..."NO". I do agree with you though.