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

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

1226

Not applicable

Jun 30, 2020 1:19:15 AM

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

Jun 30, 2020 4:53:39 AM

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.

Level 3

Jun 30, 2020 4:54:23 AM

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.

Why sign in to the Community?

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