How to report income from lending hard money to flip house?

daweigedavid · ‎June 29, 2020

Hi all,

In 2019, I lend money using using my personal checking account to a realtor friend I know to flip houses. I am not actively participating in the flipping process other than lending money, and the house is not under my name.

How do I report such income in Turbotax? What form should I use?

Thanks,

David

Anonymous · ‎June 30, 2020

how is the amount he pays you determined? if he's splitting profits, you are probably engaged in a partnership for which a tax return should have been filed. if it's intended to be interest he should have issued you a 1099-int. what did you agree to with the realtor and is it in writing?

daweigedavid · ‎June 30, 2020

Thank you for your reply. Yes the profit is being split and it is just what i receive an agree upon percentage of the net profit.

daweigedavid · ‎June 30, 2020

Thank you for your reply. Yes the profit is being split and it is just what i receive an agree upon percentage of the net profit.

How to report income from lending hard money to flip house?

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Get your taxes done using TurboTax

Get your taxes done using TurboTax