Hello community,
I’m looking for some advice and I’m hoping to find some answers here. I just purchased a storage unit with a friend/co-worker full of auto parts. We plan to list it all individually on eBay. We have sold stuff together on eBay in the past before the new tax laws changed but nothing near the volume of stuff we have now. We plan to list the items on my personal eBay account or maybe open an eBay store. My question is, since the money will be deposited into my personal bank account, how do I give him half the profits so I don’t get hit with all of the taxable income when I receive my 2022 1099 form from eBay? Let’s say we sell $20k worth of items, how do I write off his $10k so I don’t have to pay taxes on his portion? Can I give him a 1099 form? Do we need to open an LLC? I’ve been told we could open a joint bank account but I do not like that option at all. Or am I just over thinking this whole thing and there’s an easy solution? Thanks in advance!
ps, yes I know people are going to say don’t go into business with a friend. This is a 1 time deal we got. I/we know the risks and it is of no concern. We have hardly any money invested into this deal and have nothing to lose except some time.
