The IRS has changed the reporting requirements for some types of businesses owned jointly by spouses. Here are the details :

• For tax years after 2006 (that means for your 2007 return)
  
• If you and your spouse own a business that is unincorporated (NOT a corporation or an LLC),
  
• You and your spouse can qualify as a "joint venture."

This means you can file using two Schedule C's instead of as a partnership.

To clarify, the IRS says you are a "qualified joint venture" if:

(1) the only members of the joint venture are a husband and wife who file a joint return, (2) both spouses materially participate in the trade or business, and (3) both spouses elect not to be treated as a partnership.

You make the election on your joint Form 1040 and you file separate Schedule C forms showing the percentage interest of each of the spouses on their respective Schedule C forms. For example, if your "qualified joint venture" showed a profit of $100,000, and you and your spouse had equal shares, you would each report $50,000 profit on your own Schedule C. The full $100,000 would be shown on the Form 1040.

If you already have a partnership or LLC, read the Tax Information Bulletin for more information.