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How do you claim taxes for a co-owned FB Page?

by tazman100
1 replies
My friend and I just started up a FB page. Eventually we want to monetize it and go 50/50 on the profits. We're both Canadians so I filled out a W-8BEN form for an affiliate program that I recently joined. So my question is, when it comes time to submit taxes, since i submitted a W-8BEN form, how do I show that I only claim 50% of the earnings while my friend claims the other half? Is there a way?
#claim #coowned #page #taxes
  • Profile picture of the author Istvan Horvath
    The 2 things (your W-8BEN form and splitting the income) don't have much to do with each other.

    The form is to let you Amercian (US) payer know that you are a foreigner and they should not substract the "withholding taxes" from your earned income. The American withholding taxes are the equivalent of our Canadian income source deductions: CPP + EI + income tax.

    As for the splitting: you can form a partnership and it would make the income splitting technically easier; or you can "pretend" you hire your partner for a certain job to perform for your business and pay him as a contractor (via cheque, Paypal... anything that is traceable) and in that case:
    - you deduct what you paid as expense;
    - he is reponsible for paying taxes on the payment you gave him;

    Note. Even if you are self-eomployed (without even registering a business) you can claim expenses for your self-emplooyment activity, you just need to fill out this form when filing your taxes:
    T2125 - Statement of Business or Professional Activities
    Signature

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