How is the business organized? Is it an LLC or corporation that you own part of? Or was this a loan?
It's a sole proprietorship. Its a small business where the owner has 51% ownership and I have 49% with no involvement except providing tools. We set it up where he has 3 years to pay me back at which time he will have 100% ownership. The majority of the tools were purchased in 2018 and this hear it has been very minimal. Thank you for responding and I look forward to your next response.
If a business has two owners, like you are indicating, then it defaults to being a partnership. You can elect to be taxed as a corporation, but under no circumstances can it be a sole proprietorship - by definition a sole proprietorship only has one owner. You will need to file a partnership tax return (Form 1065) for the business, and then you will receive a Form K-1 to include on your personal tax return.