Paying taxes on a JV, send invoice or 1099?

[dgfalk]

Im doing a JV with a guy were he gets 80% and I get 20% of the earning, but ALL earning go into my account first then I pay him. I want to make sure I cover my ass the best I can so when it comes to tax time im not paying on income that I never even got.

So what is my best option, have the guy e-mail me an invoice each month stating what I owe him, then at the end of the year just write all of that off? To keep track of it all would I just print out that montly invoice, and print out the paypal transaction showing that I paid him?

Or would it be best to keep track of each month then at the end of the year send him a 1099? Need to figure this out soon because I am gonna have to send a payment at the end of the month.

 

[DamnTees]

You have an LLC or are you just claiming the income on your taxes?

 

[dgfalk]

For now just claiming the income, havnt ever came close to earning enough to consider an LLC

 

[BorisTipsIt]

I would do the invoice and keep track of what you paid him. 1099 him if necessary.

 

[mylar]

Im doing a JV with a guy were he gets 80% and I get 20% of the earning, but ALL earning go into my account first then I pay him. I want to make sure I cover my ass the best I can so when it comes to tax time im not paying on income that I never even got.

So what is my best option, have the guy e-mail me an invoice each month stating what I owe him, then at the end of the year just write all of that off? To keep track of it all would I just print out that montly invoice, and print out the paypal transaction showing that I paid him?

Or would it be best to keep track of each month then at the end of the year send him a 1099? Need to figure this out soon because I am gonna have to send a payment at the end of the month.

Print out your paypal transactions for your records in case you're audited & if you've paid him $600 or more in one year also send him & the IRS a 1099Misc, don't need to be a LLC, also to be a bit more professional get a TIN # (it's free & helps protect your ss# as well).

Simple, otherwise the IRS will assume you need to pay taxes on All the income. Note: I used to work for the IRS as a Taxpayer Service Rep so all the above is true, it's no big deal & will protect you if ever audited.

 

[Drew Iza]

Print out your paypal transactions for your records in case you're audited & if you've paid him $600 or more in one year also send him & the IRS a 1099Misc, don't need to be a LLC, also to be a bit more professional get a TIN # (it's free & helps protect your ss# as well).

Simple, otherwise the IRS will assume you need to pay taxes on All the income. Note: I used to work for the IRS as a Taxpayer Service Rep so all the above is true, it's no big deal & will protect you if ever audited.

What if the JV is with someone out of the country and doesn't have a business or want to fill out a 1099?

What are your options?

 

[CYBERTRON]

60/40 cause your gonna need 25 for your taxes

 

[Nimble]

What if the JV is with someone out of the country and doesn't have a business or want to fill out a 1099?

What are your options?

Curious about this also.

 

[mylar]

What if the JV is with someone out of the country and doesn't have a business or want to fill out a 1099?

What are your options?

Sorry been gone awhile. In this case you would fill out as much as you can on the 1099 & include a note telling the IRS - this idiot lives outside the usa & refuses to give me any tax-type of ID. Just have that copy of your paypal records, etc to show in case of an audit.

 

[Bross]

Dude, go see an accountant and save yourself time and hustle.
Obviously you are a descent man who wants to pay taxes, so use a person who knows taxes.

 

[mylar]

Dude, go see an accountant and save yourself time and hustle.
Obviously you are a descent man who wants to pay taxes, so use a person who knows taxes.

No really it's not that complicated & the IRS can always be called directly for info too. The Intent as you say, he wants to pay & be given all proper deductions, is the main thing the IRS is looking at with the slew of new small biz owners.

The average person with any snap at all doesn't need to pay anyone to fill out tax forms esp. if you have the free time to do it. If you're losing money while taking time out then sure hiring help may be best - tho this will Not insure you won't get audited so record keeping is Very important throughout the year.

 

[suga051982]

if you pay him more than $9,999 a year you may have a problem. anything up to that amount does not have to be taxed. if you pay a PERSON more than that amount then you are required to have them fill out a W8 and withhold 30% from what you pay them and then pay that to the IRS. Its a lot easier if you can get him to incorporate so that you dont have to do that. business to business transactions are not required to withhold anything.