So I have been working together as a Joint Venture and were starting to make some decent money.

I am lending out my affiliate account while he is driving traffic to it. We are consistently making a min of $1500 a month on my account.

I am sending him 60% while I keep 40% of $1500 every month.

What is the best way to handle taxes in this situation? I dont want to get screwed.

hmm...the issue is you will get a 1099 from whomever...treat him as an independent contractor and as a business expense...issue him a 1099 for the amount of funds you paid him. Now you have notified the IRS and shifted the tax burden to him...he can write off any expenses he had..etc

Check with a local tax expert ...but that is the way I would do it

JQ