Report a small business that your spouse operates in Part 5.

Note that other entries in this guide specifically address farms, law firms, and corporate stock.  See those entries for more targeted guidance if applicable.

For Your Spouse

Part 5

Report your spouse’s small business if its value was more than $1,000 at the end of the reporting period, if your spouse received more than $200 in dividends, capital gains, interest, rent, royalties, or honoraria during the reporting period, or if your spouse received more than $1,000 in other income during the reporting period.

Description:  Provide the name of the business and the type of business being conducted.  In the absence of a specific business name, describe the trade practiced.  If the legal name of the business differs from the name under which the business operates, it is helpful if you provide both names for clarity.  In addition, unless otherwise specified, reported business interests are generally assumed to be structured as C-corporations.  Consequently, if the business is otherwise structured, it is helpful to describe the type of business interest, such as “LLC” or “sole proprietorship.”

EIF:  Select “N/A.”

Value:  Select the appropriate category to report the value of the business.

Income Type and Income Amount:  The level of detail required for income depends on the amount and type(s) of income.

(1) Dividends, capital gains, interest, rent, or royalties over $200:  Specify the categories of income for “Income Type” and select the category that corresponds to the total amount of income received during the reporting period.

(2) Honoraria over $200:  See “Additional Requirements” below.

(3) Other income over $1,000:  Specify the type of income.  (For purposes of financial disclosure, income from a business operated by a spouse will be treated as being subject to the earned income reporting requirements, unless the income is classified as dividends, capital gains, interest, rent, royalties, or honoraria.)

Additional Requirements

Business Assets and Liabilities:  You need not itemize the assets of the business in Part 5.  Disclosing the small business itself is normally sufficient.  As an exception to this rule, you would report any assets that are unrelated to the operations of that business.  Report any liabilities for which your spouse is personally liable in Part 8.

Compensation and Other Benefits:  In addition to business income, your spouse may receive other compensation and other benefits.  Report these as separate line entries using the instructions in this guide for that type of asset or income.  For example, various entries in this guide address severance payments, bonuses, deferred compensation, defined benefit plans, defined contribution plans, and other items.

Honoraria:  In general, you need to report the source of an honorarium (income for an appearance, speech, or article) separately even if your spouse received the income through a single-member LLC or a speakers’ bureau.  See the honorarium entry in this guide for additional information.

Copyright on a Book:  In general, you need to report the copyright on a book even if your spouse received the income through a single-member LLC.  Report the LLC on one line in Part 5 and then report each book on a separate line.

Interests Arising from the Sale of a Business:  Report a third-party escrow agreement using the instructions in this guide for such agreements.