If 2 equal business partners own a bar and 1 of them is working employee shifts as a bartender, is he required to split his bar tips with his partner?
Question Details: Also, what is the best way to claim these tips as taxable income?
No, he is not required to split the tips with his partner: tips may only be received by or shared among people actually working in tippable positions (e.g. bar tender, waiter, buser, etc.). The business partnership is irrelevant for this purpose.
How to best claim the tips as taxable income is a question for a tax preparer or accountant.
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