do i have to pay tax on which i made doing service for people because i cashed out $xxx to my bank account. i know most cpa network take tax form and then they pay you so if i jv(joint venture) do i have to pay tax on the other guys part of the money? like if we make $3000 a month and pay him $1500 do i pay tax on 3k or 1.5k Thanks
I can not tell under what type of business entity you have this joint venture, but you will only pay tax on the portion of the money that you do not pay your jv partner. You may need to issue a 1099 MISC or if you have a state registered partnership you will issue a K-1 to the partner for his share. I hope this helps. If you need further assistance I can be reached through my website at http://www.1040WealthDesigns.com