Originally Posted by TaxGuru
My question is why are you complicating your situation! Why don't you make this a joint business, say an LLC and the monies that are paid to either you or your spouse consider it as a distribution.
Alternatively, treat amounts that are paid to your spouse as a draw, as if you are taking the salary. There should be no impact on the tax return. There really is no need to go through all the trouble of doing a W-9 and issuing a 1099-Misc, at least that is based on the limited information that you have provided to me.
There are various reasons why our businesses are seperate. One reason is due to SSDI that I receive (blind disabilty) which I can make certain amount per month (over 12 month period). Often times I would hire my wife to take care of some business that I cannot handle myself.
The business is not a LLC (or jointly with my wife) because of another reason which I like to keep personal. So the question I wanted an answer to is how the money is handled if I paid for services rendered? Should I have her fill out a W-9 and report the income and send her a 1099-misc even though we file jointly on our tax return?
Again, I am paying to her business in which she offers services to me. I really don't think it falls under expenses.