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Topic: US Citizen in UK Partnership - How to report to IRS  (Read 774 times)

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US Citizen in UK Partnership - How to report to IRS
« on: June 04, 2013, 08:46:30 PM »
I am a UK Citizen resident in the UK for over 20 years and have previously been self-employed and reporting income on schedule C.  In 2011 my husband (UK citizen/NRA) set up a 50/50 uk partnership.  Our partnership fiscal year end is 6 April for uk accounting purposes and we only have UK sourced income.

My previous advisor put on the 2011 return pro-rata income/expenditure for my 50% earnings in the partnership for y/e 6 April 2012 on a schedule c and completed form 8865 as a category 3 and 4 filer noting the start of my 50% in the partnership.  My return was filed as head of household.

As I am trying to understand and file for myself this year I need some advice.  As a husband/wife partnership we would be qualifying joint venture and treat the income on schedule c, but as my husband has no obligation to file a us return we do not file jointly.  Can I still put my 50% on schedule c?  Would I then not need to file form 8865? 

Any thoughts would be appreciated as the irs tax enquiry center has told me they cannot comment on partnership tax as the area is too specialised!


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