Me and my partner want to open a joint brokerage account. The question that we are struggling with is, how the income reporting (1099-B or 1099-Misc) will be handled between me and my partner. I understand that the brokerage firm will issue 1099-B/1099-Misc under the Social Security Number of one of us partners. Can this partner pay the tax on his share of the income and issue another 1099 to the other partner and the other partner becomes responsible for his share of the tax? For example, the starting amount of the account is $1,000,000. The amount becomes $1,500,000 ($500,000 profit). Would it be possible for me to pay taxes on my share of profit of $250,000 and my partner would pay taxes on his share of $250,000?
Should we open a regular joint (JWROS) account with the stock brokerage firm or we should form a corporation (C or S), or LLC?
Thanks in advance for your attention to this & taking time to respond.