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.