Married filing Separately -- where to put shared items?

That alone is usually not enough to make MFS better than MFJ. How much of an advantage does your initial estimate lead to? Are you losing credits and subject to stricter limitations under MFS?

No. First, if you are in a community property state, special rules apply -- in short, community income is split 50-50 regardless of who it originated with. Second, income belongs to the person who either earned it or owns the property which generated it, so that is what is reported on each person's return. Third, deductions belong to the person who owed the money and who actually paid it out of their own funds. (Exceptions apply, but that's the general principle).

It would be a good idea.

-Mark Bole

If you live in a "community property state" (there are 15 of them), then your split is pretty much mandated at 50% each for every item mentioned per state law.

Otherwise, the 1099-Misc income belongs to the ONE wh is the sole-proprietor. The other items may be split as you see fit. By indicating MFS and identifying your spouse, you've done all you need to do regarding the "missing items" issue.

CallMeZoot at snipped-for-privacy@gmail.com wrote on 2/2/08 4:00 PM:

If you are both on the loan, allocate it any way you wish.

If you jointly hold title to the property, anyway you wish.

If self employment it should be whoever owns the business. If gambling winnings, it should go with the gambler.

If joint account it can go either way but you should report it under the SSN that reported it to the IRS and then subtract it out with a comment transferring it to the other SSN. Then report it on the other person's return.

yes

yes

no

Yes, if they were reported to the IRS on a 1099 type form. The IRS will look for them where reported.

All freely provided advice guarantee correct or double your money back

Frank S. Duke, Jr. CPA Cincinnati, OH USA

D. Stussy wrote: [...]

Wrong, there are nine. See Pub 555.

-Mark Bole

1. California
2. Idaho
3. Louisiana
4. Nevada
5. New Mexico
6. Texas
7. Washington
8. Wisconsin

What are the other 6?

Bob Sandler

Brain freeze here. You're right. I was thinking of "common law" states - of which there are 15.

The first problem with this is, since information on MFS returns is not necessarily available to the other spouse, how could one arbitrarily split up income and deductions and ensure they are not double-reported?

See Table 1 in Pub 504 (page 5, for 2007 tax year). There are indeed rules for dividing Schedule A deductions on MFS returns.

-Mark Bole

If we want to get technical... the Nati "Currently, only 10 states (Alabama, Colorado, Kansas, Rhode Island, South Carolina, Iowa, Montana, Oklahoma, Pennsylvania and Texas) and the District of Columbia recognize common-law marriages contracted within their borders. In addition, five states have "grandfathered" common law marriage, allowing those established before a certain date to be recognized. New Hampshire recognizes common law marriage only for purposes of probate, and Utah recognizes common law marriages only if they have been validated by a court or administrative order."