How do I report nominee income from a business I have a joint venture with?

Forum|Forum|3 years ago
February 5, 2023
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My business is a joint venture with another business. This other business recieved a 1099k from square, and I need to file half of that income as income for my business and not theirs. My understanding is they will be reporting the whole 1099k and then designating half of that income to my business (my business will be a nominee). So if they do that, how do I report that income on my taxes? I use TurboTax Self Employed.

Do I get some sort of 1099 form from this business I have a joint venture with? Or do I just put that income in the "other income" section that turbotax offers (separate from the 1099k section)? If it's the ladder, what do I put for type of income- is it income from square, or farmers markets, or is it now income from that other business that I have the joint venture with? Thank you for the help.

TurboTax Self Employed Online

AliciaP1

Unless your joint venture is operated as an organization exempt from income tax, the joint venture needs to file a Form 1065, US Return of Partnership income reporting the income from the 1099. You would then receive a Schedule K-1 as a partner that reports your share of the income based on your ownership share of profits. This you would enter into TurboTax self-employed as a Schedule K-1 from a partnership.

See Partnership as defined by the IRS on the Instructions for Form 1065.

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