Business partnership 1099-Misc do you split it between the two partners

[RichardK]

Generally, partnerships will prepare a partnership tax return (Form 1065), and supply each partner with a K-1 (Form 1065), which the partners use to report information on their individual tax return. Click here for IRS publication 541 Partnerships.

[tvernier]

In my situation I am a partner for a small business however due to it being a medical practice we were advised by a business attorney that it would be easier to list the physician as the owner and make a partnership contract where I would receive 50% of all profit.  So, we each own 50% of the business however he is the only listed owner. So when we filed the business taxes they were done with the listed owner. So he is getting a refund back and I would like to know if we should split that refund 50/50? 

[Vanessa A]

Clarification....

You are saying one person is the owner, but it is a partnership? If you both own 50% of the business you would both be owners.  

As for a refund, what type of business entity was created? 

Is he filing a Schedule C or a 1065?  

If a partnership return is filed (which is should be) then a K-1 should be generated for each of you.  Partners in the business do not get 1099's, they get K-1's. If each of you are 50/50 partners, then you should be reporting equal income.  An LLC or LLP does not pay taxes.  Each partner would pay taxes on their individual income from the partnership on their own personal returns.  

Depending on the rest of the individual tax situation (kids, married, other income, taxes withheld on the other income, quarterly tax payments) your refunds or tax due could be very different. So, no, if done correctly, the other owner should not split his refund with you unless he wants to just to be nice, but it is not part of the business income.