I'll be making $100K this year through my business and want to minimize taxes. Is it legal to turn my sole proprietorship into an unincorporated partnership with my brother, so we both make $50K? Can my brother then give me his $50K (less taxes he paid on it of course)?
2007-12-13 03:57:11 · 3 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ Other - Taxes
No. Substance over form.
The IRS (and your state) would take a very dim view of an arrangement like this.
2007-12-13 04:01:58 · answer #1 · answered by Wayne Z 7 · 2⤊ 0⤋
The IRS has a term for this practice. It is called "Tax Evasion" but the term is about 10 years in prison.
2007-12-14 11:37:55 · answer #2 · answered by ? 6 · 0⤊ 0⤋
You have already earned the money so it is taxable to you.
Baloney belongs on sandwiches, not tax returns. Plan accordingly.
2007-12-13 13:06:27 · answer #3 · answered by Anonymous · 2⤊ 0⤋