I recently had a mini package where I sold 6x365 with a markup. Someone bought a 1pct share for $27 dollars I fired 3 bullets of the 6 so they are getting back half of their investment in unused bullets.
I cashed in 2 of the 3 tourneys, for $741 and $11,944, which after tip is 12,635 total

so for bullet#1 they get $7.35
bullet#2 they get $119.00
for 3 unused bullets they get $13.50 back
for a total of $139.85

That same person then rolled over the winnings/unused toward the ME for and investment of $60, which I did not cash in.
the amount to go back to the person is $79.85

The investor has opted for me to withhold 30% for taxes. two questions.
1. How much would that be? Am I withholding 30pct of the winnings? the entire package? only the 11k score?

2. If I fill out a 5754 tax form (which is the plan), Do I just claim the entire package, winnings and loses and report the entire thing? or only the winnings? or only the winning where I received a tax form? (or something else)

Thank you for your help in advance, just want to be fair and send the correct amount to this person, so I appreciate anyone that takes the time to help me learn, what is correct.