3. Mr. and Mrs. Chou file a joint income tax return. Mr. Chou reports the income
from his full-time landscaping business on a Schedule C, which lists him as the
sole proprietor. He also reports 100 percent of the net profit as his self-
employment income and pays SE tax accordingly. During the last several years,
Mrs. Chou has worked at least 20 hours per week in her husband's business.
However, Mr. Chou does not pay her a salary or wage for her services.