Updated over 7 years ago on . Most recent reply
Flipping with partner, only my name on house, who pays tax?
Hi. I may buy a short sale home, I will sign the mortgage alone. A partner who is a broker will fix it up with me and then we will resell in a year. He says we will split the profit of the sale and write it in our settlement disclosure or as he calls it a "HUD statement". He will get 50% 9he will help me fix it, and sell it) and I will get 50% of the final sale. Question: Will I have to pay taxes on only my 50% profit? or will I have to pay on the whole 100% profit since I was the seller on paper? He says that as long as its written in the HUD that i only received 50% of the sale that i only have to claim 50% profit at tax time. Is this correct? Thanks.