Tax implications for wholesalers, jv partners, etc?

[Tony K.]

Hey guys,

I had a question about how to account for end of the year taxes when dealing with partnerships/joint ventures. If the Purchase & Sale Agreement specifies that the parties involved would be the homeseller and me. Let's say I bought the house at $200,000 negotiated price.

If I wholesaled the house with a joint venture partner at $220,000 and there's a $20,000 assignment fee left between us to share. My question is, since the PASA specifies me as the buyer and the assignment contract also specifies me as the assignor, how can I split the check?

The escrow company I spoke to this morning mentioned that they can only write me 1 check since my partner is not a party to the transaction...

So would I take the $20,000 check and write a $10,000 check for my partner? How does taxes for a transaction like that work for me? I think it would be easier of the escrow company could give us each checks so we can do our own taxes.

Should I specify to add my partner's name to the assignment contract to specify that he is also part of the transaction?

How have others done joint ventures and split profits/taxes?

Thanks

[Wayne Brooks]

Write a check, issue him a 1099.