No I did not receive any of the income , she gets it, I do not want it on my tax return. She needs to report it. So how can we do this?
One last thing ...
If you use the agent idea, it will be less of an audit flag if you take a really small commission (maybe 1 or 2 %).
Most people don't just act as a pass through for nothing.
I'm guessing any other expense at all could wipe the income out for you.
Well it's probably around $40,000. She is an EBAY power seller.
So I should expense it on the schedule C and state on it that I am acting as her agent and she earned the money through EBAY, take 1% as income on my taxes and create a 1099 for her and I would assume send it to the IRS and give her a copy right?