I gave money (more than a gift amount) to a friend who is flipping a house. COVID has delayed the project, so the investment in 2020 will not complete in the same year. Our agreement is an equal share in profit and loss, with no interest promised on my share. (The agreement was written and signed by both parties.) Do I need to report what I invested in my 2020 return or wait until 2021 when the project completes? Do we need to create a partnership, or do I need to create a schedule C for this project for 2020 returns?
