Solved: Miscellaneous income form 1099misc I rcvd. this form for nonemployee compensation of $700. I used $200 to prchs. material for job, $250. went to the co-owner, $250 for me
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Miscellaneous income form 1099misc I rcvd. this form for nonemployee compensation of $700. I used $200 to prchs. material for job, $250. went to the co-owner, $250 for me

The 1099-MISC was only sent to me. How do I add the co-owner and deduct the amount from $700 of materials used for job and the split profit?

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Intuit Alumni

Miscellaneous income form 1099misc I rcvd. this form for nonemployee compensation of $700. I used $200 to prchs. material for job, $250. went to the co-owner, $250 for me

When you enter the income from the 1099, you will also have the opportunity to include expenses. Materials is one of the categories and so is contract labor. Since you will only be issuing $250 to your "co-owner", then you will not need to file a 1099 for the money you paid him.

As an aside, a sole-proprietorship is meant for one person. If you continue this endeavor, you will either need to form a Partnership, which is quite involved, or have the 1099 issued to each of you for your own profit.

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Intuit Alumni

Miscellaneous income form 1099misc I rcvd. this form for nonemployee compensation of $700. I used $200 to prchs. material for job, $250. went to the co-owner, $250 for me

When you enter the income from the 1099, you will also have the opportunity to include expenses. Materials is one of the categories and so is contract labor. Since you will only be issuing $250 to your "co-owner", then you will not need to file a 1099 for the money you paid him.

As an aside, a sole-proprietorship is meant for one person. If you continue this endeavor, you will either need to form a Partnership, which is quite involved, or have the 1099 issued to each of you for your own profit.

View solution in original post

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