Question On Profits Reported By An Investor
If I am lending money to a person who is doing the rehab or if I enter into a joint venture where I find the property and the other JV partner does the rehab and gives me a split of the profits, how is this reported and taxed? I am not actively rehabbing nor selling the property, yet it is not a capital gain if I am simply finding a property and investing nothing in the deal other than time. Is this something where I should be getting a Schedule K for partnership income? If so, does this avoid the SE tax?
If I do lend money to a rehabber and then get my cut of the profit, how is this reported and taxed?[ Edited by joefromphilly on Date 04/30/2004 ]
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