Date of Posting : June 30, 2020
This may be a good try, but we must mention here that the IRS is smart enough. Congress is smart. The Joint Committee on Taxation is smart. It is not a Joke; they are smart! And they might have kept a check on you a mile away… probably they heard you too. Keeping all jokes aside. The tax code is very particular about tax filing and can prevent pure tax arbitrage based on tax filing status. If you are married and filing your taxes separately, your $315,000 becomes $157,500… if you are talking about a community property state, then that thing may not make a difference because the K-1 will be the tax
document coded with the specified service trade or business designation. That will split your income 50-50 (California) will not help you.