Filing MFJ for husband and wife in community property state (Wisconsin) who wholly own a LLC that will be treated as a disregarded entity on their Schedule Cs. Operating agreement specifies that husband has 60% ownership of LLC and wife has 40% ownership of LLC.
...In completing their Schedule Cs on this MFJ return, I actually split their income based on Wisconsin community property law (i.e. 50/50), not on the ownership percentages (60/40) specified in their operating agreement, right?
In addition, are their Schedule SEs treated the same way (split 50/50)? Or, in this case, do I actually split their self-employment tax based on their ownership as specified in their operating agreement (60/40)?