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RD, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 8784
Experience:  CPA, MBA, Over 10 yrs of experience in tax planning and business consulting..
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I have a small development business (not profitable yet) and

Resolved Question:

I have a small development business (not profitable yet) and a job ($218,000). I pay my wife for translation and copyreading via 1099 for my business ($36,000). I take the 1099 deduction and do a joint return. In that case should I add her income back in, and if so am I better off doing separate returns?
Submitted: 7 years ago.
Category: Tax
Expert:  RD replied 7 years ago.

Are you carrying on the business as a sole proprietor and reporting on Sch C?



Customer: replied 7 years ago.
It is an LLC
Expert:  RD replied 7 years ago.

You will report $36000 as income to your wife on your personal tax return and as a deduction in your LLC.


It may be beneficial to file joint as your business is not profitable.



Let me know if you have any question.


Please note: This advice is provided with the understanding that all the relevant facts have been provided by you. Any change in facts might affect the advice given and hence may not be relied on in such cases. Nothing contained in this reply was intended or written to be used, can be used by any taxpayer, or may be relied upon or used by any taxpayer for the purposes of avoiding penalties that may be imposed on the taxpayer under the Internal Revenue Code of 1986, as amended.

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