If you own an unincorporated business or another activity with anyone besides yourself, you likely have a partnership for federal tax purposes.
This requires you to prepare and file a partnership tax return, and then issue Schedule K-1s to the partners so they can report the partnership’s taxable items on their separate tax returns.
In some cases, you can avoid multiple tax filings and elect out of partnership treatment for federal tax purposes, and simply put the activity directly on your individual tax return!
In this article, we explain when these elections are available, their effect on you, and when it is a good (or bad) idea to make such an election. ... Log in to view full article.