Using the New ‘Qualified Joint Venture’

Opportunities for Husband-and-Wife Partnerships

Rodney P. Mock, JD, LLM

Many tax preparers have longed for the day that the filing of a federal partnership informational return would no longer be required for all husband-and-wife-owned businesses, not just those owned entirely as community property. With the passage of the Small Business and Work Opportunity Tax Act of 2007 (P.L. 110-28), a new opportunity is available to husband-and-wife businesses, allowing certain qualifying businesses an election out of federal tax partnership classification. Unfortunately, however, the law does not provide complete relief from the partnership return requirement for all taxpayers.