Perhaps, but I think it has more to do with the IRS's stand on what is considered a "qualified joint venture".
Perhaps, but I think it has more to do with the IRS's stand on what is considered a "qualified joint venture".
That's my point. The letter rulings are basically the IRS giving the states the ability to create LLC's that are disregarded entities. The code does not provide for LLC's, so it's the IRS agreement, not the code, that will define situations involving LLC's.
The IRS stand on qualified joint ventures with respect to LLC's is meaningless without regard to the LLC letter agreement with the state the LLC was created in.
Because if the letter ruling does not deal with the issue, then the IRS position saying that LLC's owned by married couples are not treated the same as partnerships between married couples is likely to be contrary to law, and therefore unenforceable.
Perhaps, but I think it has more to do with the IRS's stand on what is considered a "qualified joint venture".
===========There are other types of "joint ventures" than between spouses.
Of course there are....but we have been specifically talking about "qualified joint ventures"
If a qualified joint venture requires the couple involved to file a joint return, why would it make any difference (other than for withholding tax issues)?
And if they want to do that, one could do a Schedule C and list the other as an employee.
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