Forum

Quick Tax Question
 

Hey guys, I have a quick question in regards to taxes

I have an account that's in a close friends name. It's over the 20k threshold, and will receive the 1099 or w/e. My friend and I have an agreement where I will handle all of the tax related work/expenses that comes from this.

My question is,

Can I claim all of his accounts earnings/losses on my own taxes, relieving him of any liability since I'm assuming responsibility of it all? Or does he have to file it on his taxes even though all of the money is obviously being routed to my personal bank account, and all products being sold are paid for by me.

**I do have an accountant, but I figure a good amount of the seasoned veterans on this site will be able to shed as much light as he can on the situation**

Thanks for any help given!

Re: Quick Tax Question
 

You will need to talk to your accountant about any tax issues.

Forum cannot answer these questions.

This is one reason though that is it not recommend to use friends details.

Re: Quick Tax Question
 

Absolute mess.
So right now YOU have all the expenses and he has all the assets with almost no expenses. Get ahold of a good CPA and have them explain what commingled funds are and how you two can get what you both need taken care of before years end.

One idea is to turn that paypal into an EIN(create a company separate from his SS) before the end of the fiscal year.

Re: Quick Tax Question
 

Then the correct and seasoned advice you get is to speak to a tax professional.

They are the only people trained and skilled in the correct methods of doing taxes for IRS and State matters in the USA.

It is too risky to assume otherwise.

Good Luck.

:amen:

Re: Quick Tax Question
 

Even though you receiving all the funds into your bank account and PayPal has your friend SS number on fine for 1099, it will eventually go under your friends tax returns. Your friend have to claim all the earnings/looses, not you. As mentioned tax related issues are not discussed here. I would highly recommend that you talk to your accountant about this.

Re: Quick Tax Question
 

@Exile, seasoned veterans true...but financial professional is paid, licensed...and dedicated for your interests (in general)

Re: Quick Tax Question
 

It looks like that there is a Tax Id Involved (Your Friends), if that is the case then you have a Mess on your hands, if not then it is not much of a problem,,,you DO need to talk to an accountant in your State, even though Federal Tax law is the same everywhere, each State has it own Tax Laws that are a little different from State to State, so the real truth is that NO One here can give you a Solid answer, nor should they

Re: Quick Tax Question
 

CPA are not state restricted, attorneys are... Just to clarify. You can hire any accountant you desire, it does not have to be in your state. Many big firms deal with all 50 states, most USA territories, Canada and Australia for example.

Re: Quick Tax Question
 

Your friend will have to file it with his taxes.. you will have to reimburse him for his tax difference. It's how it goes.

Next time setup an LLC and get an EIN.

Re: Quick Tax Question
 

Apparently our advice NOT to use Friends, Family Info has not been taken serious.