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Old 04-15-2016, 03:47 PM
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Qualified Joint Venture and SEP-IRAs

Greetings. My wife and I own our own business and are filing as a qualified joint venture. My question is is a SEP-IRA an option for us? We do not have any employees and we are organized as a sole-proprietorship here in Texas. Can we each establish our own SEP-IRA based on our own Schedule C for the business. As a qualified joint venture we are splitting all the business revenues and expenses down the middle and putting one half on a Schedule C for me and the other half on a Schedule C for her. So can I open and fund a SEP-IRA based on my Schedule C for half the business, while she opens and funds another SEP-IRA based on her Schedule C for her half of the business. Is that possible? I could not find anything in IRS Pub 560 or any other IRS Publication that said anything one way or another about SEP-IRAs for a husband and wife business filing as a qualified joint venture with the business data split onto two Schedule C's, one for the husband and one for the wife (and two Schedule SE's as well of course). Thanks in advance for your help!



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Old 04-15-2016, 05:36 PM
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Greetings. My wife and I own our own business and are filing as a qualified joint venture. My question is is a SEP-IRA an option for us? We do not have any employees and we are organized as a sole-proprietorship here in Texas. Can we each establish our own SEP-IRA based on our own Schedule C for the business.=========>As far as I know, QJV is allowed ONLY in community pty states; however,I think so; For each to make a SEP IRA contribution, the income must be split into separate shares on separate Sch C. you need to Contact a retirement plan professional or a representative of a financial institution that offers retirement plans


As a qualified joint venture we are splitting all the business revenues and expenses down the middle and putting one half on a Schedule C for me and the other half on a Schedule C for her. So can I open and fund a SEP-IRA based on my Schedule C for half the business, while she opens and funds another SEP-IRA based on her Schedule C for her half of the business. Is that possible? I could not find anything in IRS Pub 560 or any other IRS Publication that said anything one way or another about SEP-IRAs for a husband and wife business filing as a qualified joint venture with the business data split onto two Schedule C's, one for the husband and one for the wife (and two Schedule SE's as well of course). Thanks in advance for your help!=>As mentioned yes you can; Under the new rules, yo an dyour spouse as co biz owners in any qualified joint venture can opt to file income taxes as sole proprietors. This permits them to report your business income on two separate Sch C rather than Sch E/ f 1065.filing a Sch C is far less daunting than completing a Form 1065.
both spouses can deduct their personal sep IRA contributions on the same tax return



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Old 04-15-2016, 06:46 PM
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Thank you!



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