Sharing Interest Income

Abedj

Hello.
I am looking for clarification on how I can transfer interest income earned by three partners from me to the other two partners.

For example, Dan, Jim and Amy pooled our money and earned $300 in interest. I would like to pay my tax rate on my $100 and let them pay their tax rate on their $100 portion.

Here is how this happened.

Last year three of us got into Tax Lien Certificates.

We all pooled our money and bought two tax liens.

to buy them, I provided my name and SSN on the W-4 Form. The interest was paid and I will get a 1099-int from the county this year.

I understand I can issue a 1099-MISC to my other two partners for their part of the interest income and I can deduct this amount from my taxes.

my question is how is this completed.

My thought was to issue two 1099-MISC and then add these two deductions on a Schedule C (possibly line16C or Line 48)

anyone have experience on how to transfer earned interest income to partners.

Thanks

Dan.

opinions4u

I'd suggest using a forum based in your own country.

oldvicar

opinions4u wrote: »

I'd suggest using a forum based in your own country.

Agreed. But to be fair to OP, its not his fault that Martin Lewis has chosen an (usually) American domain name for a British website.