1099 MISCs issue

[Lucho]

Couple business was on husband’s name, but husband health deteriorated and decided his wife’s name only on the business. Billing, insurances, contract labor documentation etc. have her wife name and signature and they decided only wife to be listed on Sch. C (no splitting)

Some of the 1099 Misc are still being issued to husband’s name.

Because is a husband and wife business I tend to continue preparing the return as the income is still product from the same service and for the same enterprise. (Of course, I will inform the couple the need to request that every 1099 for next year has to be issued on wife’s name)

What is your opinion on this? I am open to listen.

Thank you

Lucho

[imjulier]

Obviously, the total will be the same so I;m not sure why it matters. I would do sch c for husband showing his 1099 income and then an expense item saying it is reported on spouse's scedule C so husband sch c shows zero net income. For what its worth.

Julie

[Lucho]

Obviously, the total will be the same so I;m not sure why it matters. I would do sch c for husband showing his 1099 income and then an expense item saying it is reported on spouse's scedule C so husband sch c shows zero net income. For what its worth.

Julie

Thank you for your post Julie.

Lucho

[Kea]

I have a twist on the above scenario. Wife has been assisting Husband in his business for years. I finally got around to splitting Sch Cs this year (it was so easy in TRX). But 1099MISCs are in Husband's name & SSN. Everything feeds to Sch Cs 50/50, but I can change those %s. I used 50/50 since we are in a community property state. Since I am letting the software do the splitting I don't think I can show an expense from his Sch C to her's.

Will that cause IRS matching problems with Husband's gross income being less then 1099s? The total of the 2 combined Cs are in excess of the 1099s.

Thanks

[jklcpa]

It could make a difference in the calculation of the self-employment tax, that is if the wife has other earned income on a W-2.