tax question
- Thread starter cnwelf
- Start date
crazymoneyfool
Registered Member
- Oct 4, 2008
- 52
- 22
It depends on how much he makes and how he has his business records set up.
Ask him a few questions then check out the IRS website.
Ask him a few questions then check out the IRS website.
ximscreamingx
Power Member
- Jan 16, 2008
- 616
- 336
Anything less than $600 per account per year you can just "not report". But yes, it will depend on how much he makes in the fiscal year.
unclaimed3
Newbie
- Feb 20, 2008
- 27
- 89
Be mindful of the "$600 rule" where you say that a person does not have to report
actually.....
most people do have to report the income because "combined" with their other income it is more than the $600 cut off amount.
If i earned $590 commissions on lets say 170 different programs with a total income of $100,300 - would i have to file taxes? Of course i would!
So if your friend has other income that he has to combine with this income then he will owe taxes BUT with one of the most complicated and largest tax code guidelines, regulations and rules it is almost IMPOSSIBLE to tell you how much he will have to pay "across" all of his net income.
mattstrike
BANNED
- Sep 29, 2008
- 236
- 79
There is no simple answer for how taxes work.
Since you are not in the US and your partner is, your partner should make sure to treat you as an "expense" of doing business, so that they can deduct your percentage from their profit. Done properly, each of you will only have to worry about your local taxes, and only on your respective "cut", not the whole amount.
The real question is how much money you think the two of you will keep making together? If the amount is going to wind up being fairly high, then you should encourage your partner to get an accountant to help set everything up properly to maximize tax deductions. AFAIK it would work like this:
Your partner would get paid from the CPA networks that you are promoting.
Your partner would pay any business fees (like an accountant).
Your partner would pay you your cut.
Your partner (or their business, if set up that way) would owe taxes on what remained.
You would owe local taxes on what you got (in keeping with your local laws).
I'm not an accountant though, nor am I an expert in international finance, so proceed with caution, and if at all possible, get a "certified" expert of some sort to bless your arrangement, because then their rear is on the line, and you and your partner have someone to point to if someone comes sniffing around your arrangement.
Since you are not in the US and your partner is, your partner should make sure to treat you as an "expense" of doing business, so that they can deduct your percentage from their profit. Done properly, each of you will only have to worry about your local taxes, and only on your respective "cut", not the whole amount.
The real question is how much money you think the two of you will keep making together? If the amount is going to wind up being fairly high, then you should encourage your partner to get an accountant to help set everything up properly to maximize tax deductions. AFAIK it would work like this:
Your partner would get paid from the CPA networks that you are promoting.
Your partner would pay any business fees (like an accountant).
Your partner would pay you your cut.
Your partner (or their business, if set up that way) would owe taxes on what remained.
You would owe local taxes on what you got (in keeping with your local laws).
I'm not an accountant though, nor am I an expert in international finance, so proceed with caution, and if at all possible, get a "certified" expert of some sort to bless your arrangement, because then their rear is on the line, and you and your partner have someone to point to if someone comes sniffing around your arrangement.