Re: Tax considerations for backers
The easiest thing to do is to record everyone's SS#. If someone did cash he would report the entire amount on his return so that it would match with the 1099.
Then, underneath the reported income he could put
"Reported by SS#xxx-xx-xxxx"
Enter this as a negative amount. It is the others responsibilty to pick their share of income on their return. This way everyone picks up their share of income. There is no gift tax consequenses. Let me know if you have any questions.
Whiz
CPA
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