How to combine funds with Partner
Hello everyone,
I have a question about how combined funds must be managed in order to purchase a property with a partner.
A friend and I would like to combine our funds to purchase an investment property. We will sign an agreement and I have no concern about the partnership or the terms, I am simply wondering about the technical requirements of the literal procedure for combining funds for the purchase. How must we manage the funds? (For example, the easiest method I can think of, is it acceptable that one of the partners write a check which is commingled with the funds in the other partners checking account, or would that count as taxable income for the receiving partner, or entail other pitfalls.)
Any input is appreciated. Thanks in advance.