Private Investor Tax Implications
I have an investor who has offered to give me 15% of net profit after a deal closes if I fund the purchase.
What would my tax implications be if say I funded a $20,000 purchase and the sell ended up netting him $10,000, which in turn would net me $1,500 in profit. What would I be taxed on? I plan on doing this in a LLC if I decide to pursue it.
Any advice is greatly appreciated.