I sell sunglasses on Amazon. I own the products and warehouse them. For various reasons not pertinent to this question, I use somebody else's (referred to as John) credntials on those sites (i.e., John is registered as the owner of the accounts on Amazon).
End of each year, the 1099K is sent to John under his SS#. John does not own any products, does not perform any work and is not paid anything. No 1099MISC is issued to him and there is no W2 for John. No payroll taxes or workman's comp is paid for John. The income from Amazon is sent to my bank account throughout the year. These are the facts of the situation.
The question is how to handle paying income tax. Up until last year, John did his taxes based on the 1099K that was sent from Amazon and I cut out the check to pay the tax. (For simplicity sakes, let's just say I paid my own income tax based on some other income under my name but I was not connected to the Amazon income). However, with the Obamacare and other reasons, we no longer want to pay the tax under John's name but under my name. Given how the relationship is established and how we ran the business as described above, what is the correct way to transfer the Amazon income from John to me? Can we do a 1099MISC transfer of income from John to me? What is the correct way?
End of each year, the 1099K is sent to John under his SS#. John does not own any products, does not perform any work and is not paid anything. No 1099MISC is issued to him and there is no W2 for John. No payroll taxes or workman's comp is paid for John. The income from Amazon is sent to my bank account throughout the year. These are the facts of the situation.
The question is how to handle paying income tax. Up until last year, John did his taxes based on the 1099K that was sent from Amazon and I cut out the check to pay the tax. (For simplicity sakes, let's just say I paid my own income tax based on some other income under my name but I was not connected to the Amazon income). However, with the Obamacare and other reasons, we no longer want to pay the tax under John's name but under my name. Given how the relationship is established and how we ran the business as described above, what is the correct way to transfer the Amazon income from John to me? Can we do a 1099MISC transfer of income from John to me? What is the correct way?