I share the royalty on sales of a video game 50/50 with my former business partner. I receive a 1099 for the full amount of the sales. How do we share the tax liability?
We have attempted to have the royalties paid to us separately in a 50/50 split but the companies that pay the royalties are not able to do this. They require a single payee. So I receive the payment and pass on half to my partner. Adding his royalty to my income puts me over the limit for health care assistance so I would like to only report the royalty that I actually receive and have him report his royalty. Can I report only half and have him report half? Should I issue him a 1099? Thank you in advance for your help!