1090 Needed For Buyout Of Partnership?
My partner (brother) decided that the house I (we) rehabbed was so nice.....he wants to move in it! The house is a joint venture between us and he wants to buy me out / pay me my 50% share of the profits as if we sold the house. Since this is a joint venture, is the money he gives me taxable as a short term capital gain, or am I required to file a 1090 for the money , or ?
Your gain should be whatever he pays you less all of the expenses you incurred in purchasing and rehabbing the property. If rehabbing is a regular, reoccuring activity for you, I would say that it would go on a Sch C. Otherwise, Sch D.