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Level 3
June 30, 2020
Question

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

  • June 30, 2020
  • 3 replies
  • 37 views

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

3 replies

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?  

Level 3
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.