If i am working in a partnership with another contractor but the payment for completing jobs comes through my account before i send the other contractors share to their account what information/proof must i provide when lodging my tax to prove that so i only pay tax on what i made from the payment?
Hello @Jmt024326,
Normally we would suggest you setup a partnership bank account and then send the money out to the partners. As this makes it alot easier to align with your partnership return. As long as the amounts equal to what is listed in the partnership distribution you will most likely be alright. The main thing is to have clear records of the transactions. I would suggest consulting with a tax professional as you are currently working like its setup as a contractor and then sub contractor situation which would require invoices rather than a partnership.
Hello @Jmt024326,
Normally we would suggest you setup a partnership bank account and then send the money out to the partners. As this makes it alot easier to align with your partnership return. As long as the amounts equal to what is listed in the partnership distribution you will most likely be alright. The main thing is to have clear records of the transactions. I would suggest consulting with a tax professional as you are currently working like its setup as a contractor and then sub contractor situation which would require invoices rather than a partnership.
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