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Fkatz · 08-08-2007, 10:21 AM

. "RE: per diem per person"
Aug-07-07, 08:50 PM (EDT)
In response to message #1

But can you take $52.00 for both husband and wife?
52.00 x 2 people= 104.00 per day?

arrbsthw

Morning arrbsthw

[b]Sorry it does not work that way, you cannot combine the per diem on one Sch C. or on one Partners return as a total. prior to the new law. which always stated that it has to be separated.
If you were told or did it in prior years, there is a very good chance that you will be audited, They are Checking more closly Returns with Schedule C (Sole Propreitors) Approx 130,000 returns randomly will be checked.

The New law that was passed as THE SMALL BUSINESS WORK OPPORTUNITY ACT OF 2007 (HR2206) effective for the 2007 tax year and beyond until changed states as follows:
Husband and Wife Joint Ventures. under partnerships and Corportations

If a qualified joint venture is conducted by a husband and wife who file a joint return for the tax year. the return is not treated as a partnership for tax purposes.
All items of income, gain, loss, deductions, and credits are divided equally between the spouses according to there respective interests in the venture and each spouse takes into account his or her
respective share of these items as if they were attributable top a trade or business conducted by the spouse as a sole propreitor. Each spouse with report his or her share on the approriate form, such as Schedule C, E, or F.

A qualified joint venture means any joint venture involving the conduct of a trade or business if:
* The only member of the venture are husband and wife
* Both Spouses materially particpate in the trade or business under
the passive loss rules without regard tot he rule that treats particpationby one spouse as particpation by the other.
* Both Spouses elect the application of this rule.
* Effective for tax year beginning December 31, 2006

Both of you would receive the per diem allowance at 75%, but it will have to be split on each spouses Schedule "C"

Franklin Katz, ATP, PA
Frank's Tax & Business Service
120 York Road
Kings Mountain, NC 28086-3151
(704) 739-4039
Fax (704)-739-3934

08-08-2007, 10:21 AM	#4 (permalink)
Fkatz Moderator Join Date: Nov 1999 Location: . Rating: Posts: 553	RE: per diem per person . "RE: per diem per person" Aug-07-07, 08:50 PM (EDT) In response to message #1 But can you take $52.00 for both husband and wife? 52.00 x 2 people= 104.00 per day? arrbsthw Morning arrbsthw [b]Sorry it does not work that way, you cannot combine the per diem on one Sch C. or on one Partners return as a total. prior to the new law. which always stated that it has to be separated. If you were told or did it in prior years, there is a very good chance that you will be audited, They are Checking more closly Returns with Schedule C (Sole Propreitors) Approx 130,000 returns randomly will be checked. The New law that was passed as THE SMALL BUSINESS WORK OPPORTUNITY ACT OF 2007 (HR2206) effective for the 2007 tax year and beyond until changed states as follows: Husband and Wife Joint Ventures. under partnerships and Corportations If a qualified joint venture is conducted by a husband and wife who file a joint return for the tax year. the return is not treated as a partnership for tax purposes. All items of income, gain, loss, deductions, and credits are divided equally between the spouses according to there respective interests in the venture and each spouse takes into account his or her respective share of these items as if they were attributable top a trade or business conducted by the spouse as a sole propreitor. Each spouse with report his or her share on the approriate form, such as Schedule C, E, or F. A qualified joint venture means any joint venture involving the conduct of a trade or business if: * The only member of the venture are husband and wife * Both Spouses materially particpate in the trade or business under the passive loss rules without regard tot he rule that treats particpationby one spouse as particpation by the other. * Both Spouses elect the application of this rule. * Effective for tax year beginning December 31, 2006 Both of you would receive the per diem allowance at 75%, but it will have to be split on each spouses Schedule "C" Franklin Katz, ATP, PA Frank's Tax & Business Service 120 York Road Kings Mountain, NC 28086-3151 (704) 739-4039 Fax (704)-739-3934