If the interest is community property, then I would attribute the entire interest to the other spouse as “Joint ownership with one or more other persons of an undivided interest in such ownership interest” under 31 C.F.R. § 1010.380(d)(2)(ii)(A).

I would not proportionately reduce the interest by 50% because it’s owned by both spouses as community property. When the interest is owned jointly, then I would treat each spouse as owning the entire community interest. If they meet the 25+% beneficial ownership test, then report them both.

If the interest were separate property, I would not report that other spouse as having an interest.

This would not be the same for Substantial Control. If only one spouse has Substantial Control (e.g., they’re employed by the Reporting Company as Manager or whatever), then only report that spouse because the job isn’t Community Property.

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