Partnership Income.

[ataylor123]

State of Nevada.

Okay, a long time buddy and I are writing a book together. I am curious about how the income / taxes will work.

For example, lets say we earn $1,000,000 from selling books. Our agreement is a 55/45 partnership. So, if I receive a check for $1,000,000 how can I give him his $450,000? Is it a "gift?" How does this work?

 

[LdiJ]

State of Nevada.

Okay, a long time buddy and I are writing a book together. I am curious about how the income / taxes will work.

For example, lets say we earn $1,000,000 from selling books. Our agreement is a 55/45 partnership. So, if I receive a check for $1,000,000 how can I give him his $450,000? Is it a "gift?" How does this work?

You need to set up an actual partnership. Then the partnership needs to receive a check made out to the partnership, and then the partnership would file a partnership return allocating the profits to each of you in the 55/45 split, and the taxes would flow through to your personal returns via a K-1. The partnership would then distribute the profits to each of you accordingly.

 

[davew128]

Duplicate post.