USA How to report business income/expenses

[Business_Owner]

My wife and I "own" a small marketing company (approx $100k revenue a year, $10k-$20k expenses). DBA only, no LLC. We have always split the income and expenses down the middle and filed two Schedule C's, one for her and one for myself. Every project we work on together so there would be no easy way to determine who's revenue and expenses are who's. I believe the net tax burden for our family comes out the same no matter how we split it. Years ago I was told this is the right way to do it but I've seen some postings that say this is not correct. If it matters we are not in a community property state.

 

[Shcoll]

My wife and I "own" a small marketing company (approx $100k revenue a year, $10k-$20k expenses). DBA only, no LLC. We have always split the income and expenses down the middle and filed two Schedule C's, one for her and one for myself. Every project we work on together so there would be no easy way to determine who's revenue and expenses are who's. I believe the net tax burden for our family comes out the same no matter how we split it. Years ago I was told this is the right way to do it but I've seen some postings that say this is not correct. If it matters we are not in a community property state.

You could continue to do what you doing, however, you may use you 1040 software to find out if you will save taxes or not, then you can decide filing a joint or a separate returns.